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REVENUE  SYSTEMS 


OF 


STATE  AND  LOCAL  GOVERNMENTS 


By  CARL  C.  PLEHN,  Ph.  D. 


REPRINTED  FROM  CENSUS  REPORT  ON 
WEALTH,  DEBT,  AND  TAXATION 


WASHINGTON 

GOVERNMENT  PRINTING  OFFICE 

1907 


: 


..■■••.  m 


REVENUE  SYSTEMS 


OF 


STATE  AND  LOCAL  GOVERNMENTS 


By  CARL  C.   PLEHN,  Ph.  D. 


REPRINTED  FROM  CENSUS  REPORT  ON 
WEALTH,  DEBT,  AND  TAXATION 


WASHINGTON 

GOVERNMENT  PRINTING  OFFICE 
1907 


Ho  £ 


REVENUE  SYSTEMS  OF  THE  STATE  AND  LOCAL  GOVERNMENTS. 


A   DIGEST    OF    CONSTITUTIONAL    AND    STATUTORY    PROVISIONS    RELATING    TO   TAXATION   IN 

THE  DIFFERENT  STATES  AND  TERRITORIES  IN   1902. 


By  Carl  C.  Plehn,  Ph.  D.,  Associate  Professor  in  the  University  of  California. 


SUMMARY. 


This  summary  is  intended  to  present  a  general  sur- 
vey of  the  revenue  systems  of  the  states  and  territories. 
It  includes  all  that  is  characteristic  and  most  of  the 
important  details  of  the  several  revenue  systems,  omit- 
ting the  less  frequent  or  less  important  items.  It  has 
been  designed  primarily  for  the  purpose  of  showing  in 
what  state  a  given  tax  is  in  use,  or  a  given  provision 
relating  to  revenue  may  be  found.  If  it  is  desired  to 
ascertain  what  taxes  are  in  use  in  a  given  state,  the 
information  can  be  ascertained  better  from  the  compi- 
lation of  the  revenue  laws  of  that  state  as  given  in  Part 
II  of  this  digest;  but  if  it  is  desired  to  know  in  what 
states  a  given  tax  or  given  provision  obtains,  such  in- 
formation will  be  more  easily  found  in  this  summary. 

In  general,  the  state  laws  leave  wide  discretionary 
powers  to  the  local  governments  as  to  matters  relating 
to  taxation,  but  in  each  state  there  are  some  statutory 
provisions  of  a  general  character  intended  to  bring 
about  uniformity  in  the  levy  and  collection,  even  of 
local  taxes,  within  the  state.  This  summary,  as  also 
the  compilations  of  the  revenue  systems  of  the  states, 
is  based  upon  such  general  statutory  provisions  only. 
The  provisions  relating  to  taxation  to  be  found  in  city 
charters  or  ordinances,  local  in  character,  have  not 
been  included  in  this  summary,  nor  in  the  compila- 
tions  for  the  states  and  territories.  Both  the  sum- 
mary and  such  compilations  are,  therefore,  primarily 
concerned  with  state  taxation,  and  county  and  munici- 
pal taxation  are  covered  only  in  so  far  as  they  have 
been  determined  or  fixed  by  general  state  legislation. 
In  this  digest  the  word  "municipal"  refers  to  those 
divisions  of  government  smaller  than,  or  ranking  below, 
the  county,  as  cities,  towns,  townships,  etc. 

The  material  in  the  compilations  of  the  revenue  laws 
of  the  several  states  and  territories  is  presented,  so  far 
as  possible,  under  fixed  headings  or  classes.     In  the 


summary  the  same  headings  or  classes  have  also  been 
used  as  far  as  possible. 

The  classification  used  is  as  follows: 
First- 
General  Description,  Constitutional  Provisions, 
and  Officers. 
Second — 

Under  each  of  three  main  divisions,  namely, 
State  Revenues,  County  Revenues,  and  Mu- 
nicipal Revenues,  come  the  following  sub- 
divisions— 

A.  Taxes. 

I.  The  general  property  tax. 

1.  Base. 

a.  The  property  subject  to 

taxation. 
The  exemptions. 

b.  Assessment. 

c.  Equalization. 

2.  Rate. 

3.  Collection. 
Poll  tax. 
Inheritance  tax. 
Corporation  taxes. 
Business  taxes  and  licenses. 

VII,  etc.    Other  taxes,  where   they 
occurred. 

B.  Fees. 

C.  D,  etc.  Other  revenues,  not  taxes,  where 
found. 

The  summary  follows  as  closely  as  may  be  the  same 
classification,  but  with  the  following  exceptions: 

No  attempt  has  been  made  to  summarize  the  general 
descriptions  nor  the  constitutional  provisions.  This 
is  for  the  obvious  reason  that  everything  of  signifi- 
cance in  them  is  necessarily  embodied  in  the  statutory 
provisions,  and  the  mere  distinction  between  statutory 

(617) 


II. 
III. 

IV. 

V. 

VI, 


618 


WEALTH,  DEBT,  AND  TAXATION. 


and  constitutional  law  can  not  be  of  any  importance 
in  interpreting  the  statistics  concerning  the  revenues 
of  the  states. 

Furthermore,  no  attempt  has  been  made  to  sum- 
marize the  provisions  in  regard  to  fees,  miscellaneous 
taxes,  and  other  miscellaneous  revenues.  This  is  for 
the  reason  that  scarcely  any  two  states  have  the  same 
provisions  and  any  summary  would  necessarily  be 
little  more  than  a  reprint  of  what  is  shown,  almost  as 
conveniently,  under  the  descriptions  of  the  revenue 
systems  of  the  several  states  and  territories. 

DEFINITIONS. 

The  following  definitions  have  ruled  in  the  classifi- 
cation of  material : 

Officers. — This  list  includes  only  those  concerned 
directly  with  the  assessment,  levy  or  collection  of 
taxes  and  other  revenues.  Officers,  who,  like  the 
treasurers,  merely  receive  the  funds  or  act  in  some 
very  subordinate  capacity,  are  not  included. 

A  tax. — A  tax  is  a  general  compulsory  contribution 
of  wealth  collected  in  the  general  interest  of  the  com- 
munity from  individuals  or  corporations  by  an  exer- 
cise of  the  sovereign  power  of  the  government,  and 
levied  without  reference  to  the  special  benefits  which 
the  contributors  may  severally  derive  from  the  public 
purposes  for  which  the  revenue  is  required. 

The  general  property  tax. — This  is  a  direct  tax  upon 
property,  or  upon  persons,  natural  or  corporate,  in 
proportion  to  their  property,  except  only  such  as  may 
be  specifically  exempt  on  account  of  its  or  their  pub- 
lic character  or  from  considerations  of  public  policy. 
This  is  the  most  widely  used  tax  in  the  United  States. 

Poll  tax. — This  is  a  direct  personal  tax,  usually  on 
males,  in  certain  classes,  apportioned,  as  the  name 
implies,  at  so  much  per  head. 

Inheritance  tax. — This  is  a  tax  levied  upon  property 
passing  by  bequest,  by  the  intestate  laws  of  a  state, 
or  by  deed  or  gift  intended  to  take  effect  after  death. 

Corporation  taxes. — This  term  has  been  used  some- 
what broadly  to  include  all  taxes  levied  on  corpora- 
tions generally  or  on  any  particular  group  of  corpo- 
rations, when  such  taxes  are  notably  different  in  form 
or  administration  from  the  taxes  levied  on  private  or 
individual  citizens  or  their  property.  It  does  not  in- 
clude all  taxes  levied  on  corporations,  but  only  those 
which  appear  to  take  on  a  special  form. 

Business  taxes  and  licenses. — These  include  all  reve- 
nues collected  from  persons,  natural  or  corporate,  by 
reason  of  the  business  or  calling  in  which  they  are 
engaged,  where  such  collection  is  associated  with  and 
enforced  by  the  granting  of  a  license  or  permit  to 
engage  therein,  and  where  the  granting  of  such  license 
or  permit  is  a  condition  to  the  transaction  of  business 
or  the  following  of  a  trade  or  industrial  calling,  the 
performance  of  any  act,  or  the  beginning  of  any  under- 
taking. 


Among  the  subordinate  terms  used  are: 

Base. — The  kind  of  property,  the  classes  of  persons, 
the  sorts  of  income,  etc.,  on  which  the  tax  is  levied. 

Exemptions. — Items  naturally  or  logically  included 
in  the  base,  but  which  for  reasons  of  public  policy  are 
treated  as  exceptions  and  arbitrarily  excluded  from 
the  base.  Items  sometimes  listed  in  the  statutes  as 
exempt,  because  the  taxpaying  ability  they  represent 
is  levied  upon  in  some  other  way,  are  omitted. 

Assessment. — Includes  two  processes:  (1)  Listing  or 
enrolling,  and  (2)  appraising  or  valuing  the  items  enter- 
ing into  the  base.     (See  further  limitations,  page  626.) 

Equalization. — Raising  or  lowering  the  assessment 
or  appraisal,  by  districts  or  by  classes  of  property  in 
order  to  produce  uniformity.  (See  further  limitations, 
page  629.) 

Bate. — The  amount  of  the  tax  falling  on  each  unit 
of  the  base. 

Collection. — The  process  of  gathering  the  revenues. 
This  has  been  made  to  include  the  time  of  payment,  of 
delinquency,  the  penalties  for  nonpayment  and  delin- 
quency, the  lien  of  the  government,  and  other  matters 
relating  to  the  enforcement  of  the  levy. 

OFFICERS. 

The  states  fall  into  two  sharply  distinct  groups  in 
relation  to  the  election  or  appointment  of  officers 
dealing  with  taxation,  as  well  as  in  regard  to  the  gen- 
eral administration  of  the  entire  revenue  system:  the 
first,  those  in  which  the  township  is  the  unit  of  admin- 
istration and  hence  the  district  or  division  for  which  the 
local  officers  are  elected  or  appointed;  the  second, 
those  in  which  the  county  is  the  unit.  A  few  states 
have  the  township  system  in  some  counties  and  the 
county  system  in  others.  This  may  arise  from  a  per- 
manent difference  in  the  plan  of  local  government  in 
different  sections,  as  in  Illinois,  or  it  may  be,  as  in  the 
Dakotas,  a  merely  transitional  stage,  passing  away  as 
soon  as,  with  the  growth  of  population,  the  counties 
are  organized  into  townships. 

Under  the  township  system  there  may  be  county 
officers  to  supervise  the  work  of  local  officers,  in  the 
interest  of  uniformity,  as  do  the  county  assessors  in 
Indiana,  and  very  frequently  the  collection  of  taxes  for 
state,  county,  and  municipal  purposes  is  made  by  the 
county  collectors. 

It  is  also  common  under  the  county  system  to 
allow  certain  cities,  or  towns  and  cities  generally,  to 
have  their  own  officers,  assessors,  and  collectors,  for 
the  administration  of  local  or  city  taxes.  But  in  that 
case  state  and  county  taxes,  at  least  outside  of  the 
excepted  cities,  are  usually  assessed  and  collected  by 
county  officers. 

In  the  following  general  summary  the  differences  in 
the  titles  of  the  officers  have  been  ignored;  and  listers, 
appraisers,  etc.,  have  all  been  included  under  the  term 


TAXATION  AND  REVENUE  SYSTEMS. 


619 


'  'assessors."  The  particular  titles  used  in  the  different 
states  have  been  preserved  in  the  abstracts  for  each 
state.  The  office  of  assessor  is  rarely  combined  with 
any  other  office,  and  it  is  very  unusual  for  the  assessor 
to  be  tax  collector.  A  common  exception,  however, 
is  that  the  assessor  acts  as  collector  for  the  poll 
taxes  and  collects  taxes  on  easily  movable  personalty 
when  the  owner  thereof  has  no  realty.  The  office  of 
the  collector  is,  on  the  contrary,  sometimes  combined 
with  that  of  another  office;  thus  the  treasurer,  town  or 
county,  is  often  ex  officio  tax  collector  in  Northern 
and  Western  states,  while  in  some  Southern  states  the 
sheriff  acts  as  tax  collector. 

Under  the  township  system  the  roll,  when  made  up 
by  the  assessor,  is  usually  revised  by  some  local  board 
of  review,  which  may  be  either  the  local  legislative 
body,  as  the  town  trustees,  or  city  council,  or  a  board 
specially  constituted  for  the  purpose.  The  latter  is 
more  common  in  those  states  in  which  the  assessment 
is  made  at  infrequent  intervals.  The  duties  of  these 
boards  are  to  adjust  differences  between  individuals 
and  to  hear  appeals  from  the  action  of  the  assessor. 
After  review  by  the  local  board,  the  roll  is,  in  many 
states,  referred  to  a  county  board  of  equalization, 
whose  principal  duty  it  is  to  equalize  between  the  towns 
and  cities  in  the  county  and  sometimes  to  hear  appeals 
from  the  action  of  the  local  boards  of  review.  In  many 
states  there  are  also  state  boards  of  equalization,  which 
generally  have  power  to  equalize  the  assessments  be- 
tween the  different  counties. 

Under  the  county  system  the  first  revision  is  usu- 
ally made  by  the  county  board  of  equalization,  whose 
chief  duties  are  to  equalize  between  the  individuals, 
while  the  state  board,  if  there  be  one,  equalizes  be- 
tween the  counties. 

Other  officers  having  in  some  states  important  duties 
with  the  administration  of  the  revenue  laws  are: 
State  boards  of  assessment  for  certain  classes  of  prop- 
erty, which  classes  are  withdrawn  from  the  local  assess- 
ors, such  as  railroad  property;  the  auditors,  who  fre- 
quently receive  the  returns  of  certain  classes  of  tax- 
payers; and,  in  a  few  states,  tax  commissioners,  vested 
with  different  functions  in  different  states,  but  gener- 
ally exercising  supervision  over  the  administration  of 
the  revenue  laws  and  reporting  to  the  legislature 
necessary  changes. 

There  are  a  few  other  officers,  such  as  the  tax  in- 
quisitors in  Ohio  and  the  back-tax  commissioners  in 
some  of  the  Southern  states,  who  are  mentioned  in  the 
abstracts  for  the  different  states  but  not  brought  to- 
gether in  the  summary. 

The  treasurers,  state  and  local,  are  usually  mere 
keepers  of  the  public  monevs  and  have  little  to  do,  un- 
less ex  officio,  with  the  direct  administration  of  the 


tax  system.     They  have,  therefore,  not  been  included 
in  the  list  of  officers  directly  connected  with  taxation. 

The  chief  value  of  this  compilation  of  the  officers,  in 
connection  with  the  statistics  relating  to  the  revenues, 
is  to  point  out  the  differences  in  the  system  of  adminis- 
tration which  are  likely  to  affect  the  thoroughness  of 
the  administration. 

The  assessors,  who  make  up  the  initial  or  primary 
assessment  rolls  for  the  general  system  of  state  and' 
local  taxes,  are: 

1.  Elected  or  appointed  by  counties:1 

In  Alabama,  Arizona,  Arkansas,  California,  Colorado,  Florida, 
Georgia,  Tdaho;  in  some  counties  in  Illinois:  in  Indian  Territory,  Ken- 
tucky; by  parishes  in  Louisiana;  in  Maryland,  Mississippi;  in  some 
counties  in  Missouri;  in  Montana;  in  some  counties  in  Nebraska;  in 
j  Nevada,  New  Mexico ;  in  some  counties  in  North  Dakota;  in  Oklahoma, 
Oregon;  in  a  few  counties  in  Pennsylvania;  in  some  counties  in  South 
Dakota;  in  Tennessee,  Texas,  Utah,  Virginia,  Washington,  West  Vir- 
ginia, and  Wyoming. 

(a)  The  county  assessors 2  are  elected : 

Once  every  two  years  in  Arkansas,  Colorado,  Florida,  Georgia,  Idaho, 
Indian  Territory,  Maryland,  Montana,  Nebraska,  Nevada,  New  Mexico, 
North  Dakota,  Oklahoma,  Oregon,  South  Dakota,  Texas,  Utah,  Wash- 
ington, and  Wyoming;  once  every  three  years,  in  Pennsylvania;  once 
every  four  years,  in  AJabama,  Arizona,  California,  Illinois,  Kentucky, 
Louisiana,  Mississippi,  Missouri,  Tennessee,  and  West  Virginia;  once 
every  five  years,  in-Virginia. 

2.  Elected  or  appointed  by  townships,  towns,  cities, 
or  villages,  or  other  analogous  units: 

In  Connecticut ;  in  Delaware  by  the '' hundred ;"  in  District  of  Colum- 
bia;3 in  some  counties  in  Illinois;  in  Indiana,  Iowa,  Kansas,  Maine, 
Massachusetts,  Michigan,  Minnesota;  in  some  counties  in  Missouri  and 
Nebraska;  in  New  Hampshire,  New  Jersey,  New  York,  North  Carolina; 
in  some  counties  in  North  Dakota;  in  Ohio,  Oklahoma:  in  some  counties 
in  Pennsylvania;  in  Rhode  Island,  South  Carolina;  in  some  counties  in 
South  Dakota;  in  Vermont  and  Wisconsin. 

(a)  The  local  or  town  assessors  are  elected: 

Once  every  year  in  all  but  three  towns  in  Connecticut;  in  Illinois, 
Kansas,  Maine,  Michigan,  Minnesota,  Nebraska,  New  Hampshire, 
North  Dakota,  Ohio,  Rhode  Island,  Vermont,  and  Wisconsin;  once 
every  two  years  in  Delaware,  Iowa,  Missouri,  New  York,  Oklahoma, 
South  Carolina,  and  South  Dakota;  once  every  three  years  in  three 
towns  in  Connecticut;  in  New  Jersey  and  Pennsylvania;  once  every 
four  years  in  Indiana  and  North  Carolina;  once  every  one  to  three 
years  in  Massachusetts;  hold  during  good  behavior  in  the  District  of 
Columbia. 

The   assessors    are   compensated  by  salary  or  per 

diem : 

In  all  states  except  the  following,  in  which  they  are  compensated  by 
commissions  or  (and)  fees:  Alabama,  Arkansas,  Florida,  Georgia,  Ken- 
tucky, Louisiana ;  in  some  cases,  New  Jersey ;  New  Mexico ;  at  the  dis- 
cretion of  the  appointing  authority,  North  Carolina;  Texas,  Virginia, 
and  West  Virginia. 

1  Yet  in  some  of  these  states  there  are  cities  which  have,  or  may  have, 
their  own  independent  officers  for  the  assessment  and  collection  of  their 
separate  city  taxes. 

2  As  affecting  the  terms  of  these  officers  in  some  cases,  se"e  the  fre- 
quency of  assessment,  below. 

1  For  the  District,  see  abstract. 


620 


WEALTH,  DEBT,  AND  TAXATION. 


There  are  state  or  territorial  boards  of  assessment 
(or  special  officers),  for  certain  subjects  of  taxation: ' 

In  Alabama,  Arizona,  Arkansas,  California,  Colorado,  Connecticut, 
Idaho,  Illinois,  Indian  Territory,  Indiana,  Iowa,  Kansas,  Kentucky, 
Louisiana,  Maine,  Massachusetts,  Michigan,  Minnesota,  Mississippi,  Mis- 
souri, Montana,  Nebraska,  New  Hampshire,  New  Jersey,  New  Mexico, 
New  York,  North  Carolina,  North  Dakota,  Ohio,  Oklahoma,  Pennsyl- 
vania, South  Carolina,  South  Dakota,  Tennessee,  Utah,  Vermont,  Vir- 
ginia, West  Virginia,  Wisconsin,  and  Wyoming. 

There  are  county  boards  of  review  or  equalization: 

In  Arizona,  Arkansas,  California,  Colorado,  Delaware,  Florida,  Idaho, 
Illinois,  Indian  Territory,  Indiana,  Iowa,  Kansas,  Kentucky;  parish 
boards  for  railroads  in  Louisiana;  in  Maryland,  Michigan,  Minnesota, 
Mississippi,  Missouri,  Montana,  Nebraska,  Nevada,  New  Jersey,  New 
Mexico,  New  York,  North  Carolina,  North  Dakota,  Ohio,  Oklahoma, 
Oregon,  Pennsylvania,  South  Carolina,  South  Dakota,  Tennessee,  Texas 
Utah,  Washington;  between  individuals  in  West  Virginia,  Wisconsin, 
and  Wyoming. 

There  are  state  (or  territorial)  boards  of  equali- 
zation : 

In  Arizona,  California,  Colorado,  Connecticut,  Idaho,  Illinois,  Indiana, 
Iowa,  Kansas,  Kentucky,  Maine,  Michigan,  Minnesota,  Missouri,  Mon- 
tana, Nebraska,  New  Hampshire,  New  Jersey,  New  Mexico,  New  York, 
North  Dakota,  Ohio,  Oklahoma,  Pennsylvania,  South  Carolina,  South 
Dakota,  Tennessee,  Utah,  Washington,  West  Virginia,  Wisconsin,  and 
Wyoming. 

There  are  state  tax  commissioners,  or  boards  exer- 
cising certain  supervisory  powers2  over  the  adminis- 
tration of  the  system  of  taxation  as  a  whole  or  in 
part,  exclusive  of  legislative  or  similar  commissions 
for  the  revision  of  the  revenue  laws: 

In  Alabama,  Connecticut,  Indiana,  Maine,  Maryland,  Massachusetts, 
Michigan,  New  Jersey,  New  York,  North  Carolina,  Tennessee;  since  1902 
in  West  Virginia;  in  Vermont  and  Wisconsin. 

The  collectors  for  the  main  part  of  the  system,  other 
than  for  purely  municipal  taxes,  are: 

1.  Elected  or  appointed  by  counties: 

In  Alabama,  Arizona,  Arkansas,  California,  Colorado,  Florida,  Georgia, 
Idaho;  in  some  counties  in  Illinois;  in  Indian  Territory,  Indiana,  Iowa, 
Kansas,  Kentucky;  by  parishes  in  Louisiana;  in  Maryland,  Minnesota, 
Mississippi;  in  some  counties  in  Missouri;  in  Montana,  Nebraska, 
Nevada,  New  Mexico,  North  Carolina,  North  Dakota,  Ohio,  Oklahoma, 
Oregon,  South  Carolina;  in  some  counties  in  South  Dakota;  in  Tennes- 
see, Texas,  Utah,  Virginia,  Washington,  West  Virginia,  and  Wyoming; 
taxation  districts  in  Hawaii. 

2.  Elected  or  appointed  by  townships,  towns,  cities, 
villages,  or  other  analogous  local  units: 

In  Connecticut;  by  the  "hundred''  in  Delaware;  in  Maine,  Massa- 
chusetts, Michigan;  in  some  counties  in  Missouri;  in  New  Hampshire, 
New  Jersey,  New  York,  Pennsylvania,  Rhode  Island;  in  some  coun- 
ties in  South  Dakota;  in  Vermont  and  Wisconsin. 

1  The  list  does  not  contain  certain  states  in  which  some  subjects  of 
taxation,  like  the  railroads,  "make  return''  to  a  state  officer  who  does 
not,  beyond  receiving  the  returns,  exercise  any  positive  function  of 
assessment 

2  Powers  or  duties  analogous  to  those  of  these  commissions  are  often 
conferred  upon  regular  state  officers. 


State  Revenues. 


a.    TAXES. 


I.    The  general  property  tax. 

The  general  property  tax  is  used  as  a  state  tax,  that 
is,  to  supply  some  revenues  for  general  state  purposes: 

In  all  the  states  and  territories  except  Connecticut,  Delaware,  Indian 
Territory,  Pennsylvania,  and  Alaska. 

In  Connecticut,  however,  the  state  levies  what  is  in  effect  a  general 
property  tax  on  the  basis  of  the  number  of  specified  polls,  and  in 
Pennsylvania  the  state  levies  a  tax  on  certain  classes  of  personal 
property. 

A  number  of  other  states  have  recently  increased 
the  proportion  of  their  revenues  coming  from  sources 
other  than  the  general  property  tax,  and  correspond- 
ingly reduced  the  proportion  drawn  from  that  tax. 
This,  however,  is  shown  in  the  analyses  of  the  reve- 
nues themselves,  rather  than  in  the  summary  of  the 
laws. 

1.  Base — 

a.  The  property  included  and  exempt. — The  property 
included  is  most  commonly  defined  as:  (1)  "All  prop- 
erty, real  and  personal,  in  the  state  not  specially 
exempt;"  it  is  also  common  to  add:  (2)  "and  moneys, 
credits,  investments  in  bonds,  stocks,  joint-stock  com- 
panies, etc.,"  or  "personal  property  generally  of  per- 
sons residing  within  the  state."  Vermont  expressly 
exempts  all  personal  estate  of  its  residents  located  in 
another  state,  and  several  states  exempt  property  taxed 
in  another  state  or  permanently  located  in  business  in 
another  state. 

Most  of  the  revenue  laws  distinguish  two  classes  of 
property  only,  real  and  personal.  The  definitions  of 
these  two  classes  "for  purposes  of  taxation"  differ  in 
many  instances  from  the  common-law  definitions. 
The  more  important  particulars  in  which  they  differ 
will  be  noted  below. 

In  the  following  states  the  revenue  laws  make  no 
special  definition  of  property  "for  purposes  of  taxa- 
tion:" 

Delaware,  Georgia,  Iowa,  Maryland,  Mississippi,  Tennessee,  and 
Virginia. 

In  the  following  states  more  than  two  classes  of 
property  subject  to  taxation  are  recognized  and 
specially  defined: 

Alabama,  14;  Arkansas,  6;  California,  5;  Colorado,  3;  Idaho,  3;  Illi- 
nois, 5;  Kentucky,  6;  Louisiana,  15;  Nebraska,  4;  New  Mexico,  3; 
Ohio,  6. 

Real  estate  is  usually  defined,  for  purposes  of  taxa- 
tion, to  include  land  and  improvements  thereon. 

All  rights  and  privileges  connected  with  land  are 
also  included  in  many  instances,  but  these  do  not 
assume  any  great  importance  except  in  those  states  in 
which  there  are  considerable  amounts  of  public  lands. 


TAXATION  AND  REVENUE  SYSTEM?. 


621 


Public  lands,  state  and  national,  are  not  ordinarily 
taxable;  but  in  some  states  the  interest,  or  possess- 
ory claim,  of  persons  acquiring  title  to  public  lands, 
as  under  the  homestead  laws,  or  by  purchase  under 
contract  from  the  state,  is  taxable.  In  others  the 
settler  is  not  taxed  until  he  has  an  interest  sufficient 
to  entitle  him  to  a  patent.  .  In  some  of  the  latter,  how- 
ever, the  improvements  made  by  the  settler  on  public 
lands  are  taxable.  In  some  states  possessory  claims 
and  private  improvements  on  public  lands  are  taxed 
as  real  estate;  in  others,  as  personal  property.  As 
these  differences  in  classification  seriously  affect  the 
comparability  of  the  tables  of  the  assessed  valuations, 
especially  in  the  Western  states,  every  effort  has  been 
made  to  learn  the  exact  practice.  The  statutes  are 
usually  ambiguous  on  this  point,  and  it  has  been  nec- 
essary to  gather  this  information  from  the  attorney- 
generals  of  the  states. 

In  the  following  states  there  are  no  particular  pro- 
visions of  the  law  bearing  on  possessory  claims,  pre- 
sumably because  there  are  no  great  number  of  such 
interests  in  these  states: 

Alabama,  Connecticut,  Delaware,  District  of  Columbia,  Florida,  Illi- 
nois, Kentucky,  Louisiana,  Maryland,  Massachusetts,  Mississippi, 
Nebraska,  New  Hampshire,  New  Jersey,  New  York,  North  Carolina, 
Pennsylvania,  Rhode  Island,  South  Carolina,  Tennessee,  Vermont,  and 
Virginia. 

In  the  following  states  the  law  provides  that  for  the 
purposes  of  taxation  real  property  shall  include,  in 
addition  to  land  and  improvements  thereon,  the  pos- 
session of  or  right  to  the  possession  of  land: 

Arizona,  Arkansas,  California,  Colorado,  Georgia,  Idaho,  Indian  Terri- 
tory, Iowa,  Kansas,  Maine,  Minnesota,  Missouri,  Montana,  Nevada, 
Ohio,  Oklahoma,  Oregon,  South  Dakota,  Texas,  Utah,  Washington,  West 
Virginia,  Wisconsin,  and  Wyoming. 

But  possessory  claims  are  not  taxable  until  title  is 
acquired: ' 

In  Arizona,  Idaho,  Kansas,  Missouri,  Montana,  Oklahoma,  South 
Dakota,  Wisconsin,  and  Wyoming. 

Possessory  claims  are  taxable  as  personal  property: 
In  Indiana,  Michigan,  New  Mexico,  and  North  Dakota. 

Improvements  on  public  lands,  the  title  to  which 
has  not  yet  passed  to  the  settler,  are  taxable  as  per- 
sonal property : ' 

In  Arizona,  Michigan,  Minnesota,  Montana,  New  Mexico,  Oregon, 
Texas,  and  Wisconsin. 

Improvements  on  land  are  specially  defined  so  as  to 
imply  treatment  or  valuation  apart  from  the  land:2 

In  Arizona,  California,  Colorado,  Idaho,  Nevada,  New  Hampshire, 
New  Mexico,  New  York  (since  1903),  Ohio,  and  Utah. 

1  These  are  the  two  most  important  exceptions  modifying  the  propor- 
tions of  assessed  real  estate  to  assessed  personal  property. 

2 See  further  provisions  having  the  same  effect,  under  Assessment, 
page  028. 


Personal  property  is  not  specially  defined,  for  pur- 
poses of  taxation : 

In  Delaware,  District  of  Columbia,  Georgia,  Iowa,  Maryland,  Missis- 
sippi, Nebraska,  New  Hampshire,  North  Carolina,  Pennsylvania, 
Tennessee,  and  Virginia. 

Personal  property  is  defined,  for  purposes  of  taxa- 
tion, to  include  all  things  other  than  real  estate: 

In  Alabama,  Arizona,  Arkansas,  California,  Colorado,  Idaho,  Indian 
Territory,  Kansas,  Kentucky,  Louisiana,  Minnesota,  Missouri,  Montana, 
New  Mexico,  Ohio,  Oklahoma,  South  Carolina,  Utah,  Vermont,  West 
Virginia,  and  Wyoming;  also  certain  items  specially  enumerated  in  Ala- 
bama, Arkansas,  Indian  Territory,  Kansas,  Kentucky,  Louisiana,  Minne- 
sota, Missouri,  Ohio,  South  Carolina,  West  Virginia,  and  Wyoming. 

Personal  property  is  defined,  for  purposes  of  taxa- 
tion, only  by  the  enumeration  of  the  particular  items 
included : 

In  Connecticut,  Florida,  Illinois,  Indiana,  Maine;  "personal  estate," 
in  Massachusetts;  in  Michigan,  Nevada,  New  Jersey,  New  York,  North 
Dakota,  Oregon,  Rhode  Island,  South  Dakota,  Texas,  Washington, 
Wisconsin,  and  Hawaii. 

Irrespective  of  general  definitions  under  which  they 
would  ordinarily  fall,  the  following  items  are  specific- 
ally'and  arbitrarily  defined,  for  purposes  of  taxation, 
as  real  estate  or  as  personal  property,  respectively: 

Ferries  or  ferry  franchises,  as  real  estate  in  Iowa,  New  Hampshire,  and 

South  Dakota. 
Ibid.,  as  personal  property  in  Wisconsin. 
Franchises,  special,  as  real  estate  in  New  York. 
Franchises,  corporate,  as  real  estate  in  Wyoming. 
Fruit  or  nut  bearing  or  ornamental  trees  or  vines,  as  real  estate  in 

California  and  South  Dakota. 
Gas  and  water  mains,  as  personal  property  in  Montana,  North  Dakota, 

South  Dakota,  Washington,  and  Wisconsin. 
Land  scrip,  railroad,  as  real  estate  in  Minnesota. 

Mineral  rights,  as  real  estate  in  Alabama,  Arkansas,  California,  Colo- 
rado, Connecticut,3  Idaho,  Illinois,  Kansas,  Massachusetts,  Minnesota, 

Missouri,  Montana,  New  Jersey,  New  Mexico,  New  York,  North  Dakota, 

South  Dakota,  Utah,  and  Washington. 
Mining  claims,  as  personal  property  in  Arizona. 
Railroad  track,  or  property  necessarily  used  in  operation,  as  real  estate 

in  Arkansas,  Illinois,  Indiana,  Maine,  Nevada,  New  Hampshire,  and 

New  York. 
Ibid.,  as  personal  property  in  Iowa,  North  Carolina,  Ohio,  and  South 

Carolina. 
Ships  are  not  deemed  property  for  purposes  of  taxation  in  Washington. 
Street   railroad  tracks,  as   personal  property  in  Montana  and  South 

Dakota. 
Telegraph  lines,  as   real  estate,  or  improvements,  in  Arizona,   New 

Hampshire,  and  New  York.     Ibid.,  as  personal  property  in  California 

and  South  Carolina. 
Telephone  lines,  also,  in  New  Hampshire. 

Toll  bridges,  as  real  estate  in  Iowa,  Nevada,  and  New  Hampshire. 
Bridges,  as  real  estate  in  New  York. 

Ibid.,  as  personal  property  in  South  Carolina  and  Wisconsin. 
Toll  roads  or  turnpikes,  as  real  estate  in  Arizona,  California,  Idaho,  and 

Nevada. 
Ibid.,  as  personal  property  in  South  Carolina. 
Water  ditches,  as  real  estate  in  Arizona,  California,  Idaho,  Nevada,  and 

New  Hampshire. 

3  Not  taxed  for  state  purposes. 


622 


WEALTH,  DEBT,  AND  TAXATION. 


Debts  may  be  deducted  from  credits,  or  from  moneys 
and  credits,  or  from  money  at  interest : 

In  Arizona,  Arkansas,  California,  Colorado;  if  liable  to  be  assessed 
and  set  in  the  list  of  creditors,  in  Connecticut;  in  Idaho,  Illinois,  Indiana, 
Iowa,  Kansas,  Maine,  Massachusetts,  Michigan,  Minnesota,  Montana, 
Nebraska,  Nevada,  New  Hampshire,  North  Carolina,  Ohio,  Rhode 
Island,  South  Carolina,  South  Dakota,  Texas,  Utah,  Virginia,  Washing- 
ton; average  amount  during  year,  in  Wisconsin;  in  West  Virginia  and 
Wyoming. 

Debts  may  be  deducted  from  personal  property: 

In  New  York,  Rhod£  Island,  and  Texas;  from  certain  items  only,  in 
Vermont  and  West  Virginia. 

Debts  may  be  deducted  from  all  property: 

In  New  Jersey. 

Franchises,  corporate  and  special,  are  specifically 
mentioned  as  taxable  property,  under  the  general  prop- 
erty tax:1 

In  Arizona  (of  railroads);  in  California,  Colorado,  Illinois,  Indiana, 
Kentucky,  Louisiana;  of  certain  classes  of  corporations  only,  in  Massa- 
chusetts; in  Michigan,  Minnesota,  Missouri,  Montana,  New  York;  of 
railroads,  North  Carolina;  of  certain  classes  of  corporations,  in  North 
Dakota;  in  Tennessee,  Texas;  of  certain  classes  of  corporations,  in 
Utah;  in  Vermont,  Washington,  Wyoming,  and  Hawaii. 

In  the  following  states  and  territories  shares  of  stock, 
in  those  corporations  for  whose  taxation  or  for  the  taxa- 
tion of  whose  property  special  provision  is  made,  are 
not  taxable  to  shareholders: 

Arizona,  Arkansas,  California,  Colorado,  Connecticut,  Florida,  Idaho, 
Illinois,  Indian  Territory,  Indiana,  Iowa,  Kansas,  Kentucky,  Maine, 
Massachusetts,  Michigan,  Minnesota,  Missouri,  Montana,  Nevada,  New 
Hampshire,  New  Jersey,  New  Mexico,  New  York,  North  Carolina,  North 
Dakota,  Ohio,  Oklahoma,  Oregon,  Rhode  Island,  South  Carolina,  South 
Dakota,  Tennessee,  Texas,  Utah,  Vermont,  West  Virginia,  Wisconsin, 
Wyoming,  and  Hawaii. 

In  two  of  the  above  states  shares  of  stock  in  cor- 
porations are  declared  to  possess  no  value  over  and 
above  the  value  of  the  property  of  the  corporation 
they  stand  for  and  represent  and  are  not  taxable  to 
the  shareholders,  namely: 

Arizona  and  California. 

The  "corporate  excess,"  or  the  amount  by  which  the 
market  value  of  the  capital  stock  of  the  corporations 
exceeds  the  value  of  the  tangible  and  other  property 
assessed  to  the  corporations,  is  distinctly  specified  as 
an  item  of  property  taxable  to  the  corporations  in  the 
following  states: 

Illinois,  Indiana,  Minnesota,  Mississippi,  Nebraska,  North  Carolina, 
North  Dakota,  South  Dakota,  and  Tennessee.  It  is  probable  that  the 
same  item  is  taxable  in  some  other  states  by  construction  of  other  parts 
of  the  revenue  laws,  but  only  those  states  have  been  included  in  which 
it  is  obviously  intended  to  tax  this  as  an  item  of  property  taxable  to 
the  corporations  under  the  general  property  tax.  (See,  further,  Cor- 
poration taxes,  page  633.) 


1  Presumably  such  franchises  are  included  under  the  general  idea  of 
property  in  other  states  as  well.  This  list  includes  only  those  states 
which  provide  especially  for  such  taxation. 


In  the  following  states  shareholders  are  taxable  on 
that  portion  of  their  holdings  which  represents  the 
''corporate  excess:" 

In  Alabama  and  the  District  of  Columbia;  in  Iowa  (some  corpora- 
tions; see,  also,  above);  and  in. Maryland. 

In  the  followmg  states  it  appears  that  shareholders 
are  taxable  on  their  stock  to  its  full  value  (if  found) 
without  reference  to  any  taxes  paid  by  the  corpora- 
tions s 

Delaware,  Georgia,  Louisiana,  and  Washington.2 

The  bonds  of  domestic  corporations,  held  by  resi- 
dents of  the  state,  are  taxed  at  their  market  value, 
the  tax  being  payable  by  the  corporation : 

In  Maryland  and  Pennsylvania. 

Certain  items  of  income  are  arbitrarily  defined  as 
property  for  purposes  of  taxation : 

Gross  receipts  of  toll  bridges,  telephone  companies,  etc.,  in  Alabama. 

Gross  commissions  of  factors,  brokers,  etc.,  in  Alabama. 

Gross  receipts  of  cotton  pickeries,  warehouses,  etc.,  in  Alabama. 

Gross  proceeds  of  mines,  in  Colorado,  Nevada,  South  Carolina,  and  Utah. 

Ground  rents,  in  Delaware. 

Net  receipts  of  foreign  fire,  marine,  and  inland  navigation  insurance 
companies,  in  Illinois. 

Ibid.,  all  insurance  companies,  in  Nebraska  and  Oklahoma. 

Specified  items  of  personal  income,  in  Massachusetts. 

Excess  of  premiums  collected  by  insurance  companies  over  losses  paid, 
in  Montana. 

Net  yearly  income  of  ships  engaged  in  foreign  carrying  trade,  in  New 
Hampshire  and  Massachusetts. 

The  income  of  any  annuity  unless  the  capital  be  taxed,  in  Minnesota, 
North  Dakota,  South  Dakota,  and  Wyoming. 

Gross  premium  receipts  of  insurance  companies,  less  dividends,  can- 
cellations, and  commissions,  in  Ohio. 

Interest  and  income  from  United  States  bonds  and  other  nontaxable 
securities,  in  Vermont. 

Gross  receipts  of  express  and  telegraph  companies,  in  Indian  Territory. 

Gross  receipts  from  foreign  bridge  companies,  in  Indiana. 

Polls  are  taxable  as  property  or  included  in  the  rolls 
with  property,  at  a  valuation  of,  or  at  a  rate  per  poll 
equivalent  to  a  valuation  of: 

$140  to  $2,700,  Delaware  (until  1899)  ;3  $100,  New  Hampshire;  $200, 
Vermont. 

Mortgages  on  real  estate  are  taxable  as  personal 
property  belonging  to  the  mortgagee,  and  no  deduc- 
tion is  allowed  the  mortgagor  from  the  assessed  value 
of  the  property  covered  by  the  mortgage: 

In  all  states  except  Arizona,  California,  Colorado,  Connecticut,  Idaho, 
and  Indiana;  in  nine  counties  in  Maryland;  in  Massachusetts,  New  Jer- 
sey, Pennsylvania,  Washington,  Alaska,  and  Hawaii. 

Mortgages  are  (or  may  be  )assessed  to  the  mortgagee 
and  the  mortgagor  allowed  to  deduct  a  corresponding 
amount  from  the  assessed  value  of  the  land: 

In  California;  except  as  to  excess  of  mortgage  over  assessed  value  of 
land,  in  Connecticut;4  in  Massachusetts;  in  five  counties  in  New  Jersey; 
in  Alaska  and  Hawaii;  (since  1903,  in  Wisconsin). 


2  For  further  information  regarding  corporations,  see  Corporation 
taxes,  page  633. 

3  Taxed  for  local  purposes  only. 

4  Not  taxable  for  state  purposes  save  under  special  conditions. 


TAXATION  AND  REVENUE  SYSTEMS. 


623 


Mortgagor  may  have  the  mortgage  assessed  to  the 
mortgagee  if  not  over  $700,  nor  over  half  the  value  of 
the  property,  and  enjoy  a  deduction  of  a  correspond- 
ing amount  from  the  assessed  value  of  the  land: 

In  Indiana. 

Mortgaged  property  taxable  as  a  whole  to  mort- 
gagor, unless  mortgage  is  returned  by  mortgagee,  in 
which  case  deduction  is  allowed: 

In  Arizona. 

Same  as  above,  except  that  deduction  may  be 
claimed  by  mortgagor: 

In  New  Jersey. 

Mortgaged  property  taxable  to  mortgagor  and 
mortgage  as  such  untaxed: 

In  Colorado  and  Idaho. 

Mortgages  not  considered  property  for  purposes  of 
taxation : 

In  Washington. 

Mortgages  are  assessed  8  per  cent  on  amount  of  in- 
terest promised: 

In  nine  counties  in  Maryland. 

Mortgages  are  assessed  4  mills  for  state  purposes 
only: 

In  Pennsylvania. 

Exemptions — general  rules. — All  property  belonging 
to  the  United  States,  and  certain  other  items,  such  as 
greenbacks  and  bonds,  are  exempt  by  Federal  law 
from  all  state  and  local  taxation.  Nevertheless  most 
of  the  state  statutes  reenact  this  exemption. 

All  property  belonging  to  the  states  or  territories,  to 
counties,  towns,  cities,  villages,  or  other  divisions  of 
government  is  in  the  nature  of  things  exempt.  Yet 
the  state  statutes  very  generally  provide  for  this  ex- 
emption. The  only  exceptions  or  apparent  excep- 
tions to  this  general  rule  are  instances  in  which  public 
property  may,  under  some  public  or  quasi  public  con- 
tract or  agreement,  be  used  for  private  profit  or  enjoy- 
ment; or  in  which  property  belonging  to  the  munici- 
palities, or  even  to  the  state  itself,  is  included  in  the 
valuation  which  is  the  basis  for  the  apportionment  of 
state  taxes  to  the  municipalities. 

It  is  a  general  principle,  usually  expressed  with  great 
care  and  detail  in  the  statutes,  and,  even  when  not  so 
expressed,  uniformly  recognized  and  rigidly  enforced 
by  the  courts,  that  private  property  exempted  because 
devoted  to  a  given  or  stated  purpose,  loses  that  ex- 
emption if  devoted  to  some  other  purpose  or  used  in 
such  a  manner  as  to  yield  directly  or  indirectly  any 
private  profit  or  enjoyment. 

As  the  three  provisions  above  stated  are  uniform  in 


all  parts  of  the  United  States,  all  reference  to  them  is 
omitted  in  the  following  summary. 

In  many  states  where  certain  classes  of  property  or 
the  persons,  legal  or  natural,  owning  or  controlling 
such  property,  are  taxed  in  a  manner  different  from 
other  classes  of  property,  as,  for  example,  public 
service  corporations  taxed  on  gross  or  net  earnings, 
these  classes  of  property  are  technically  and  by  law 
expressly  exempt  from  the  general  provisions  of  the 
law.  But  as  these  classes  are  in  no  sense  relieved  from 
any  part  of  their  proportion  of  the  public  burdens, 
they  have  been  regarded  as  merely  technical  exemptions 
and,  are  omitted  from  the  summary  of  exemptions.  The 
provisions  governing  them  will  be  described  under 
their  proper  headings  in  other  parts  of  the  general 
summary. 

The  following  summary  is  based  upon  the  general 
statutes  of  the  different  states.  Exemptions  provided 
in  local  or  special  laws,  commonly  found  in  Southern 
states  but  prohibited  by  the  constitutions  of  most 
Northern  and  Western  states,  are  not  included. 

Particular  attention  is  called  to  the  fact  that  owing 
to  the  great  variety  of  expressions  used,  certain  special 
or  particular  provisions  which  are  given  in  some  state 
statutes  are  covered  by  more  general  expressions  in 
others.  Thus,  for  example,  only  one  state  expressly 
exempts  ''nunneries,"  but  in  many  others  the 
same  result  is  attained  by  exempting  all  "religious 
societies,"  while  in  others  the  term  is  "property  used 
for  religious  purposes,"  and  so  on.  So  complex  are 
the  interrelations  of  the  different  provisions  that  this 
summary  can  serve  only  the  most  general  purposes. 
Some  more  special  questions  can  be  answered  by  in- 
specting the  compilations  for  the  individual  states; 
but  for  any  detailed  or  exact  information  reference 
must  necessarily  be  had  to  the  statutes  and  the  mul- 
titude of  cases  interpreting  them. 

Class  A. — Exemptions  for  religious,  pious,  charita- 
ble, or  benevolent  purposes,  or  for  similar  reasons: 

1.  Religious: 

Churches — All  states  and  territories  except  Alaska. 

Parsonages — $5,000,  Connecticut;  Florida,  Kansas,  Kentucky; 
$6,000,  Maine;  Maryland,  Michigan;  $2,500,  New  Hampshire,  New 
Jersey;  not  over  $2,000,  New  York;  North  Carolina,  South  Caro- 
lina, Virginia,  West  Virginia,  Wisconsin,  and  Wyoming.  * 

Religious  societies  or  property  held  for  religious  purposes — Dela- 
ware, Illinois,  Iowa,  Kansas;  personal  property  to  $(i,000,  Maine; 
Nebraska,  New  Jersey,  New  Mexico,  New  York,  North  Carolina, 
North  Dakota,  Oklahoma,  South  Dakota,  Tennessee,  Virginia,  Wis- 
consin, and  Hawaii. 

Ecclesiastical  societies  and  their  stock — Connecticut  and  Michigan. 

Camp  meeting  associations — Minnesota  and  New  Jersey. 

Nunneries — Virginia. 

Religious  hooks  kept  for  sale  by  ministers  or  colporteurs — Alabama. 

2.  Pious: 

Cemeteries     All  states  and  territories  except  California. 
Crematoriums     Iowa. 


624 


WEALTH,  DEBT,  AND  TAXATION. 


3.  Charitable  and  benevolent: 

Property  used  for  charitable  and  (or)  benevolent  purposes  or  belong- 
ing to  charitable  and  (or)  benevolent  societies  or  associations  or 
institutions — Alabama,  Arizona,  Arkansas,  Colorado,  Connecticut, 
Delaware;  personal  property  only,  District  of  Columbia;  Florida, 
Georgia,  Idaho,  Illinois,  Indian  Territory,  Indiana,  Iowa,  Kansas, 
Kentucky,  Louisiana,  Maryland,  Massachusetts,  Michigan,  Minne- 
sota, Mississippi,  Missouri,  Montana,  Nebraska;  to  $5,000,  Nevada; 
New  Hampshire,  New  Jersey,  New  Mexico,  New  York,  North  Caro- 
lina, North  Dakota,  Ohio,  Oklahoma,  Oregon,  Pennsylvania,  Rhode 
Island,  South  Carolina,  South  Dakota,  Tennessee,  Texas,  Utah, 
Vermont,  Virginia,  Washington,  West  Virginia,  Wisconsin,  and 
Wyoming. 

Grouped  with  the  above  are  fraternal  organizations,  Grand  Army 
posts,  etc.,  lodges,  etc. — North  Dakota,  Ohio,  and  Wyoming. 

Odd  Fellows,  order  of,  buildings,  parts  of  buildings,  furniture  and 
equipment — Idaho;  to  $5,000,  Nevada. 

Masons,  order  of,  buildings,  parts  of  buildings,  furniture  and  equip- 
ment— Idaho;  to  $5,000,  Nevada. 

Grand  Army  posts,  charitable  funds  of — Connecticut,  Kansas;  $20,- 
000,  Massachusetts;  Michigan,  Vermont. 

Soldiers'  Home — District  of  Columbia. 

Sons  of  Veterans,  personal  property  of — Michigan. 

Union  Veterans'  Union,  personal  property  of — Michigan. 

Women's  Relief  Corps — Michigan. 

Y.  M.  C.  A.,  personal  property  of — Michigan. 

Young  People's  Christian  unions,  personal  property  of — Michigan, 
Virginia. 

W.  C.  T.  U.  associations,  personal  property  of — Michigan. 

Temperance  societies — Massachusetts . 

Asylums,  homes,  refuges,  institutions,  etc. — Arizona,  Maryland;  for 
orphans  and  aged  and  poor  persons,  Rhode  Island :  for  orphans, 
and  reformatories,  Virginia;  for  orphans,  for  aged  and  infirm, 
and  reformatories  for  fallen  women,  Washington;  for  deaf,  dumb 
and  blind,  lunatics,  and  orphans,  West  Virginia ;  Home  of  the  Friend- 
less in  Milwaukee,  Milwaukee  Orphan,  Wisconsin;  for  orphans, 
Wyoming. 

Hospitals — Arizona ;  supported  wholly  or  in  part  by  state,  also  infirm- 
aries, Connecticut,  Idaho,  Maryland,  Mississippi,  Missouri,  New  Jer- 
sey, North  Dakota,  Pennsylvania,  Rhode  Island,  Virginia,  Wash- 
ington, West  Virginia,  and  Wyoming;  the  Queen's  Hospital,  Ha- 
waii; Kapiolani  Maternity  Home,  Hawaii. 

Widows  and  orphans,  property  of — not  to  exceed  $1,000,  when  total 
is  not  over  $2,000,  Arizona;  $1,000,  when  total  is  not  over  $5,000, 
Idaho;  $500,  if  total  does  not  exceed  $1,000,  Massachusetts;  to 
$5,000,  Nevada. 

Widow  or  mother  of  deceased  pensioner — $1,000,  Connecticut. 

Pensioned  widows,  fathers,  and  mothers — $1,000,  Connecticut. 
Dependent  on  own  exertions — $200,  Florida. 

Aged  and  infirm,  unable  in  judgment  of  assessors  to  contribute — Iowa, 
Maine;  over  75  years,  $500,  if  total  is  less  than  $1,000,  Massachu- 
setts; Oregon  and  South  Dakota. 
'  Poverty,  by  reason  of,  persons  who  in  the  opinion  of  the  assessor  are 
unable  to  contribute — Michigan,  Oregon,  and  Rhode  Island. 

Disabled  persons,  and  maimed — $200,  Florida  and  Mississippi. 

Deaf-mutes,  insane,  and  blind — to  $1,000,  Alabama. 

Deaf  and  dumb — Mississippi. 

Blind  persons — $3,000,  Connecticut  and  Mississippi. 

Persons  assessed  for  less  than  $100 — Maryland. 

Unmarried  women  over  21  years  of  age — $500,  if  total  does  not  exceed 
$1,000,  Massachusetts. 

Soldiers,  sailors,  or  marines  of  the  United  States — When  pensioned, 
up  to  $3,000,  Connecticut;  $800,  unless  property  is  over  $5,000, 
Iowa;  receiving  state  pension,  Maine;  and  their  widows  $2,000, 
unless  property  is  over  $5,000,  Massachusetts. 


3.  Charitable  and  benevolent — Continued. 

Widows,  unmarried,  of  the  above — $800,  unless  property  is  ovel 
$5,000,  Iowa. 

Persons  who  have  served  in  Army,  Navy,  Marine  Corps,  or  Revenu< 
Service  of  the  United  States— $1,000,  Connecticut. ' 

Indians,  estates  of,  Maine,  Michigan;  lands,  New  York,  North  Caro- 
lina, Oregon,  and  Wisconsin. 

Class  B. — Exemptions  granted  for  education,  or  th« 
advancement  of  knowledge: 

1.  Schools,  colleges,  and  the  like; 

Educational  purposes  generally,  or  educational  institutions  and  socie- 
ties, property  used  for — Alabama,  District  of  Columbia,  Florida, 
Indiana,  Kentucky,  Maryland,  Montana,  New  York,  North  Caro- 
lina, Pennsylvania,  Rhode  Island,  South  Carolina,  South  Dakota, 
Tennessee,  Virginia,  and  West  Virginia. 

School  property — Alabama,  Arizona,  Arkansas,  Colorado,  District  oi 
Columbia,  Idaho,  Illinois,  Indian  Territory,  Indiana,  Kansas,  Lou- 
isiana, Minnesota,  Missouri,  Nebraska,  New  Hampshire,  North  Da- 
kota, Ohio,  Rhode  Island,  South  Carolina,  Texas,  Virginia;  fre( 
schools,  West  Virginia;  Wyoming  and  Hawaii. 

Academies — Arkansas,  Connecticut,  Georgia,  Kansas,  New  Jersey 
North  Dakota,  Pennsylvania,  South  Carolina,  Virginia,  and  West 
Virginia. 

Normal  schools — Vermont . 

Colleges — Arizona,  Arkansas,  Connecticut,  Delaware,  Georgia,  Indian 
Territory,  Kansas,  Louisiana,  Maine,  New  Jersey,  North  Dakota, 
Pennsylvania,  South  Carolina,  Virginia,  West  Virginia,  and  Wis- 
consin. 

Seminaries  of  learning — Georgia,  New  Hampshire,  North  Dakota] 
Pennsylvania,  and  Virginia. 

Universities,  endowment — Kansas,  Pennsylvania,  and  Wisconsin. 

Professors  and  president  of  Brown  University1 — to  $10,000,  Rhodi 
Island. 

California  School  of  Mechanical  Arts — California. 

Leland  Stanford  Junior  University — California. 

2.  Libraries,  library  associations,  etc.: 

Public  libraries — All  libraries  not  professional,  Alabama,  Arizona, 
free  public,  California,  Colorado;  personal  property,  District  of  Co- 
lumbia; Florida',  Georgia,  Idaho,  Illinois,  Iowa,  Kansas,  Kentuckyi 
Louisiana,  Michigan,  Minnesota,  Montana,  New  Mexico,  Oklahoma' 
Oregon,  Rhode  Island;  personal  property,  South  Dakota;  Texas' 
Utah,  Virginia,  Washington,  West  Virginia,  and  Wyoming. 

Certain  law  libraries — Ohio. 

Private  libraries — Of  ministers,  Alabama;  $200,  Connecticut;  Dis- 
trict of  Columbia,  Idaho;  $300,  Iowa;  family,  $50,  Kansas;  Michi- 
gan, North  Carolina:  $100,  South  Dakota;  Vermont;  family,- West 
Virginia:  $200,  Wisconsin. 

School  books — District  of  Columbia;  $50,  Kansas;  and  Michigan. 

Books,  philosophical  apparatus,  paintings,  and  statuary  of  any  com- 
pany or  association  kept  in  a  public  hall — Georgia  and  Louisiana. 

3.  Associations  for  the  advancement  of  science,  letters,  etc.: 
Literary  institutions  and  societies — Alabama,  Connecticut,  Florida, 

Indiana,  Iowa,  Kansas,  Louisiana,  Maine,  Maryland,  Massachu- 
setts, New  Mexico,  North  Carolina,  Oregon,  and  Wisconsin. 

Scientific  institutions  and  societies — Alabama,  Connecticut ;  personal 
property,  District  of  Columbia;  Florida,  Indiana,  Iowa,  Kansas, 
Maine,  Massachusetts.  Michigan,  New  Mexico,  North  Carolina, 
Oklahoma,  Oregon,  South  Dakota,  Tennessee,  and  Wisconsin. 

Philosophical  societies — Illinois . 

Biological  and  fish  stations — New  Jersey. 

Mechanical  societies — Illinois  and  South  Carolina. 

Turner  societies — Wisconsin. 

1  Other  similar  exemptions  may  be  found  in  the  charters  of  othet 
universities. 


TAXATION  AND  REVENUE  SYSTEMS. 


625 


3.  Associations  for  the  advancement  of  science,  letters,etc. — Continued. 
Ait  galleries,  public — Wisconsin;  the  Corcoran  Art  Building,  District 

of  Columbia. 
Museums,  free  public — California. 
Virginia  Historical  Society — Virginia. 
Association  fur  the  Preservation  of  Virginia  Antiquities,  Confederate 

Memorial  Literary  Society,  Mount  Vernon  Ladies'  Association  of 

the  Union     Virginia. 
Bunker  Hill  Monument — Massachusetts. 

Class  C.     Exemptions  granted  in  return  for  serv- 
ices regarded  as  of  a  public  character: 

Agricultural  societies — $25,000,  Alabama;  Arizona;  stock  of,  Connect- 
icut: Florida,  Illinois,  Iowa,  Massachusetts,  Michigan,  Minnesota, 
Montana,  Nebraska,  New  Mexico,  New  York,  South  Carolina,  West 
Virginia,  and  Wisconsin. 

Horticultural  societies-   Illinois.  Montana,  and  Nebraska. 

Industrial  expositions — Minnesota  and  Wisconsin. 

Fire  companies,  or  apparatus  and  buildings — Arizona,  Arkansas,  Con- 
necticut, Florida,  Illinois,  Iowa.  Kansas,  Michigan,  Minnesota,  New 
Jersey,  New  York,  Ohio,  Oklahoma,  South  Carolina,  South  Dakota, 
Texas.  Washington,  West  Virginia,  Wisconsin,  and  Wyoming. 

Firemen     From  road  taxes,  New  Mexico. 

Armories — Michigan,  New  Jersey,  North  Carolina,  North  Dakota, 
Ohio,  and  Wisconsin. 

I  lass  D. — Exemptions   granted    for    economic    or 
fiscal  administrative  reasons: 

1.  Exemptions  intended  to  lighten  the  burden  upon  the  poor  or  those 
of  moderate  means,  or  to  encourage  industry  and  frugality  gen- 
erally: 

Abatement  from  all  property,  real  and  personal — $300,  Hawaii. 

Improvements  in  and  on  land  to  $.500 — Washington. 

Abatement  from  personal  property — $200  each  family,  Kansas;  used 
in  connection  with  business,  $200,  Michigan ;  $100,  Minnesota;  $10, 
North  Dakota;  $100,  Ohio;  $300,  Oregon;  $1,000,  Tennessee;  sit- 
uated in  another  state,  Vermont;  $300,  Washington. 

Cash — $100,  Connecticut  and  Delaware. 

Household  furniture,  or  goods,  or  kitchen  utensils — to  $150,  Alabama ; 
$200,  Colorado;  $500,  Connecticut;  other  than  plate,  Delaware: 
$1,000,  District  of  Columbia;  $300,  Iowa;  $250,  Kentucky;  $.500, 
Louisiana;  $200,  Maine;  $1,000,  Massachusetts;  $500,  Michigan; 
$25,  North  Carolina;  $200,  South  Dakota ;  $250,  Texas;  $500,  Ver- 
mont; $200,  Wisconsin  and  Wyoming. 

Beds  and  bedding  requisite  for  family — Iowa,  South  Dakota,  and 
Wyoming. 

Wearing  apparel — Alabama,  Connecticut,  Delaware,  District  of  Co- 
lumbia, Iowa,  Kansas,  Maine,  Maryland,  Massachusetts,  Michigan, 
North  Carolina,  South  Carolina,  South  Dakota,  Vermont,  Wiscon- 
sin, and  Wyoming. 

Articles  of  personal  adornment — District  of  Columbia. 

Provisions — And  seed,  Alabama ;  Connecticut ;  for  one  year,  Delaware ; 
Maryland;  to  $500,  Michigan;  for  one  year,  Oklahoma:  $100, 
South  Carolina;  for  one  year,  Vermont;  for  six  months,  Wiscon- 
sin. 

Food  for  family— Iowa;  for  one  year,  Oklahoma  and  South  Dakota; 
Wyoming. 

Fuel  for  family  use — Connecticut,  Maryland;  to  $500,  Michigan;  for 
one  year,  Oklahoma  and  South  Dakota. 

Tools,  farming— $25  worth,  Alabama;  $200,  Connecticut:  Delaware; 
$200,  Idaho;  $300,  Iowa;  Maine;  $300,  Maryland,  Massachusetts, 
and  Vermont. 

Tools,  mechanics' — $25,  Alabama;  and  implements  of  profession, 
Delaware;  $200,  Idaho:  $300,  Iowa:  Maine;  $300,  Maryland  and 
Massachusetts;  $500,  Michigan  and  Vermont. 

Tools,  miners',  prospector  or  householder — $200,  Idaho. 


1 .  Exemptions  intended  to  lighten  the  burden  upon  the  poor  or  those 

of  moderate  means,  etc. — Continued. 
Wagon — One,  Alabama;  wagon,  team,  and  harness  of  teamster,  Iowa; 

one  wagon,  sleigh,  and  harness,  Vermont;  of  farmer,  having  tires 

three  inches  wide,  and  sleighs,  gauge  four  feet  six  inches,  Wisconsin. 
Sewing  machines — One  to  each  family  when  personal  property  does 

not  exceed  $250,  Alabama;  one,  Michigan. 
Looms  and  spinning  wheels,  family — Alabama. 
Musical  instruments — Used  by  churches,  Connecticut;  not  exceeding 

$1,500,  Maine. 
Family  portraits — Alabama,  District  of  Columbia,  Iowa,  Michigan, 

Oklahoma,  South  Dakota,  and  Wisconsin. 
Domestic  animals — Under  1  year  of  age  (swine  and  sheep  under  6 

months),  Iowa;  under  6  months,  Maine;  same  as  Iowa,  Massachu- 
setts and  Michigan;  4  months  old,  Vermont. 
Sheep — Ten  head,  Alabama:  $100,  Connecticut;  under  0  months  of 

age,  Iowa,  Massachusetts,  and  Michigan. 
Swine — Under  6  months  of  age,  Iowa,  Massachusetts,  and  Michigan. 
Oxen — One  yoke,  Alabama. 

Hogs — Twenty  head,  Alabama;  $50,  Connecticut. 
Cows  and  calves — Two,  Alabama. 
Poultry — Alabama;   $25,   Connecticut;   Iowa;   $15,    Massachusetts; 

$25,  Vermont. 
Bees — Ten  stand,  Iowa. 

Deposits  in  savings  banks — New  Jersey  and  New  York. 
Homestead — When  not  over  $200,  New  Mexico. 
Possessory  rights  to  public  lands — Idaho,  Oklahoma,  and  other  states 

by  construction. 
Watch — One,  $25,  Vermont. 

2.  Exemptions  intended  to  adjust  inequalities  or  to  correct  other  incon- 

gruities in  the  operation  of  the  revenue  laws,  to  equalize  the  effect 
of  the  chosen  date  to  which  the  assessment  refers,  to  prevent 
double  taxat ion  and  the  like: x 

Crops  of  preceding  year,  produce  of  soil — Alabama,  Connecticut; 
grain  and  produce  of  land,  Delaware;  and  produce,  Iowa;  Ken- 
tucky, Maine,  Maryland,  Tennessee;  hay  and  produce  sufficient 
to  winter  stock,  Vermont;  and  increase  of  live  stock,  West  Vir- 
ginia. 

Growing  crops — California,  Idaho,  Tennessee,  and  Wisconsin. 

All  fiber  crops — Hawaii. 

Products,  manufactured  during  the  year  and  remaining  unsold — 
Alabama,  Tennessee,  and  West  Virginia. 

Fish,  while  in  hands  of  fisherman  or  packer  not  sold — Maryland. 

Produce  of  mines,  salt  wells,  and  oil  wells,  of  the  year  and  unsold — ■ 
West  Virginia. 

Mortgages — Idaho;  when  not  deducted,  New  Jersey;  of  nonresi- 
dents under  certain  conditions,  New  York. 

Toll  roads  or  plank  roads — Wisconsin. 

Stock  on  hand  of  manufacturer  or  tradesman — Delaware. 

Stock  in  corporations  such  that  no  dividends  arc  paid — New  Hamp- 
shire. 

Mining  claims — Idaho. 

Mines — For  ten  years,  Maine;  hut  not  proceeds,  Nevada;  for  ten 
years,  New  Mexico. 

Swamp  and  swale  lands — Improvements  on,  for  ten  years,  New 
Hampshire. 

3.  Exemptions  intended  to  foster  or  promote  certain  selected  indus- 

tries, to  afford  means  of  transportation,  to  preserve  roads,  and  the 

like: 
Irrigation  ditches — Private  and  not  selling  water,  Arizona,  Colorado, 

Idaho,   and   Utah:  public,  when  free,    New   Mexico;  all,  for  six 

years,  New  Mexico. 
Fruit  and  nut  bearing  trees — For  four  years  from  time  of  planting 

in    orchard    form,    California;  Washington;  nonhealing,    Florida; 

and  forest,  Nebraska;  fruit  or  forest,  South  Dakota. 


'This  does  not  include  pureh'  technical  exemptions,  but  only  those 
which  apparently  work  an  exemption  not  granted  in  other  cases. 


932—07- 


-40 


626 


WEALTH,  DEBT,  AND  TAXATION. 


3.  Exemptions  intended  to  foster  or  promote  certain  selected  indus- 
tries, etc. — Continued. 

Vines,  grape,  for  three  years  from  time  of  planting  in  vineyard  form — 
California. 

Manufactories1 — Cotton,  for  five  years;  if  total  investment  is 
$50,000,  ten  years,  Alabama.  Shipbuilding,  for  five  years;  or  if 
$500,000  is  invested,  for  ten  years,  Alabama.  Beet  sugar,  until 
1910,  Iowa ;  ten  years,  Wyoming.  Certain  specified  industries,  Mis" 
sissippi;  ibid.,  for  five  years,  New  Mexico.  Woolen  mills,  smelter^ 
refining  and  reduction  works,  and  tanneries,  for  five  years,  New 
Mexico.  Oxide  of  zinc,  or  metallic  zinc,  three  years,  Wisconsin. 
Canning  pineapples,  jams,  jellies,  etc.,  Hawaii. 

Railroads — New  roads,  for  ten  years  after  1901,  Arizona  and  New 
Hampshire:  six  years,  New  Mexico;  real  estate  of,  for  eight  years, 
Vermont . 

Tree  plantations,  etc. — Connecticut;  twenty  years  from  1882> 
Maine;  ten  years  after  trees  reach  four  feet,  Massachusetts;  for 
fifteen  years,  not  over  $25  per  acre,  Rhode  Island;  to  $1,000, 
South  Dakota;  belts,  Wisconsin;  forest  lands  fenoed  to  protect 
springs,  Hawaii. 

Vessels — Delaware;  in  foreign  trade,  Massachusetts;  registered  in 
the  state  and  owned  by  American  citizens,  New  York;  in  con- 
struction, Washington. 

Cooperative  insurance  companies — New  York. 

Fences,  line — Nebraska. 

Fishing  apparatus — $200,  Connecticut. 

Imports — Delaware . 

Class  E. — Exemptions  by  legislative  contract: 

There  are  a  considerable  number  of  scattered  exemptions  granted 
to  various  institutions  of  learning,  or  to  various  industrial  enter- 
prises, to  towns  and  villages,  to  certain  groups  of  persons  and  to 
bondholders  by  legislative  or  constitutional  contract  of  more  or 
less  long  standing.  These  are  of  interest  rather  as  exceptions  to 
the  rule  than  on  account  of  their  effect  upon  the  general  figures  or 
statistics  of  assessment  or  valuation.  Among  the  most  important 
of  these  are  the  exemptions  of  various  bonds,  state  and  local. 
There  is  so  much  variety  in  the  practice  of  the  different  states  in 
this  regard  and  so  many  exceptions  within  each  state  that  no  gen- 
eral summary  would  assist  in  interpreting  the  statistical  returns. 
Hence  all  of  these  are  omitted  here. 

b.  Assessment. — The  term  "assessment"  as  used  in 
this  summary  includes  only  the  two  processes  of: 
(1)  Listing  or  enrolling  and  (2)  appraising  or  valuing 
the  property  or  persons  to  be  taxed.  (Cf.  Cooley, 
Taxation,  second  edition,  page  351.)  This  is  the 
usage  most  commonly  found  in  recent  statutes.  In 
some  of  the  older  states,  however,  notably  in  some  of 
the  New  England  states,  there  are  statutes  still  in 
force  in  which  the  term  is  used  to  cover  all  the  proc- 
esses involved  in  determining  the  amount  of  tax  each 
individual  is  to  pay.  That  is,  it  includes  not  only  the 
"  assessment,"  appraisal,  or  valuation  of  property,  but 
also  the  actual  levy  of  the  tax.  (Cf.  People  v.  Weaver, 
100  U.  S.,  539.)  The  phrase  "assessing  the  prop- 
erty" expresses  more  nearly  the  modern  or  first 
mentioned  meaning,  while  "assessing  the  taxes" 
implies  the  older  or  second  mentioned  meaning  of 
the  term.  No  serious  confusion  is  likely  to  arise 
from  this  difference  in  local  usage,  as    the    context 

1  In  many  states  municipalities  are  authorized  to  grant  exemptions 
under  certain  limitations  to  manufacturing  establishments. 


can  be  relied  upon  to  make  the  meaning  clear.     (Cf. 
R.  I.  Hospital  Trust  Co.  v.  Babbitt,  22  R.  I.,  113.) 

In  most  of  the  states  there  is  one  general  assessment 
roll  in  which  all  taxable  property,  with  comparatively 
few  and  insignificant  exceptions,  is  entered  and  upon 
which  the  state,  county,  and  all  local  taxes  are  levied. 
This  roll  is  variously  known  as  the  assessment  roll, 
assessment  list,  "duplicate,"  "grand  duplicate,"  "gen- 
eral inventory,"  "grand  list,"  or  by  other  names  sug- 
gestive of  local  practices. 

The  initial  assessment,  or  valuation  and  listing,  of 
all  property,  except  that  of  certain  classes  of  public 
service  corporations  (assessed  by  state  boards,  see 
below)  is  usually  made  in  districts  (ward,  township, 
county,  etc.)  by  local  assessors.  (See  Officers,  above.) 
It  is  unimportant  whether  these  officers  are  by  law 
"state"  or  "local,"  as  they  make  their  rolls  in  sub- 
stantially the  same  manner,  by  districts. 

This  initial  assessment  roll,  so  far  as  made  by  local 
officers,  is  usually  subject  to  review  and  correction 
by  some  local  board  and  to  equalization  by  county 
and  state  boards  (see  Equalization,  below),  and  to  the 
roll  so  corrected  are  applied  both  the  local  and  state 
rates  of  taxation. 

This  general  description  fits,  with  some  relatively 
unimportant  exceptions,  the  conditions  and  practices 
prescribed  by  the  statutes  in  all  the  states  and  terri- 
tories, except  as  mentioned  below.  This  procedure  is 
intended  to  produce  a  certain  degree  of  uniformity 
within  each  state,  and  so  far  as  this  end  can  be  ac- 
complished by  statutory  enactment,  the  assessment  is 
made  uniform.  These  exceptions  below  tend  to  create 
differences. 

Exceptions:  (1)  The  following  states  do  not  levy  a 
state  tax  upon  the  assessment  of  general  property  (only 
some  of  them,  as  set  forth  below,  levy  on  certain  classes 
of  property) : 

Connecticut,  Delaware,  Indian  Territory,  Pennsylvania,  and  Alaska. 
(See,  also,  pages  670  and  674.)  • 

(2)  In  the  following  states  the  assessment  roll  is 
essentially  a  local  roll,  and  state  taxes,  with  the  ex- 
ception, possibly,  of  a  few  fixed  rates,  are  apportioned 
to  the  towns  or  counties  in  the  lump,  to  be  raised  by 
them  in  such  manner  as  they  may  prescribe;  in 
these  states  there  is  not  necessarily  any  complete 
state  roll,  nor  any  general  state  rate: 

Apportioned  biennially,  in  Maine;  apportioned  triennially,  in  Massa- 
chusetts; apportioned  quinquennially,  in  Michigan;  apportioned  quad- 
rennially, in  New  Hampshire;  state  tax  on  personal  property  only,  in 
Pennsylvania;  apportioned  once  in  sixteen  or  seventeen  years,  in  Rhode 
Island;  apportioned  annually,  in  Vermont  and  in  Washington;  appor- 
tioned decennially,  in  West  Virginia;  apportioned  annually,  in  Wis- 
consin. 

(3)  In  many  states,  especially  among  those  in  which 
the  counties  are  the  initial  assessment  districts,  the 
cities,  or  certain  cities,  are  by  special  provision,  either 


TAXATION  AND  REVENUE  SYSTEMS. 


627 


in  the  statutes  or  in  their  charters,  allowed  to  make 
separate  assessment  rolls  to  serve  as  bases  of  local  or 
city  taxes.  The  states  in  which  such  provisions  have 
been  found  in  general  statutes  are : 

Alabama,  Arizona,  California,  Georgia,  Iowa,  Kentucky,  Mississippi, 
Missouri,  Texas,  West  Virginia,  and  Wyoming. 

Frequency  of  assessment:  (1)  An  assessment  or  valu- 
ation of  all  property  is  made  annually  and  for  all  pur- 
poses, both  state  and  local: 

In  Alabama,  Arizona,  California,  Colorado,  Connecticut,  Florida, 
Georgia,  Idaho,  Kentucky,  Louisiana,  Missouri,  Montana,  Nebraska, 
Nevada.  .New  Mexico,  New  York,  North  Dakota,  Oklahoma,  Oregon, 
South  Dakota,  Utah,  Wisconsin,  Wyoming,  and  Hawaii. 

(2)  An  assessment  or  valuation  is  made  annually  for 
local  tuxes:  » 

In  Maine,  Massachusetts,  Michigan,  New  Jersey,  New  Hampshire, 
Pennsylvania,  and  Khode  Island. 

(3)  An  assessment  or  valuation  of  personal  property, 
or  of  all  property  except  real  estate,  is  made  annually: 

In  Arkansas,  District  of  Columbia,  Illinois,  Indian  Territory,  Indiana, 
Iowa,  Kansas,  Minnesota,  Mississippi,  Ohio,  South  Carolina,  Tennessee, 
Vermont,  Virginia;  for  local  taxes,  in  West  Virginia;  in  Washington. 

(4)  State  taxes  are  apportioned  annually  in  all 
states  levying  state  taxes  on  general  property  and 
having  an  annual  assessment,  except  the  following: 

In  Maine,  every  two  years;  in  Massachusetts,  every  three  years;  in 
Michigan,  even-  five  years;  in  New  Hampshire,  every  four  years;  in 
Khode  Island,  every  sixteen  or  seventeen  years;  in  West  Virginia,  every 
ten  years. 

(5)  An  assessment  or  valuation  is  made  less  fre- 
quently than  annually,  as  follows: 

(a)  For  all  property — Once  every  four  years,  in  Delaware1  and  North 
Carolina.  (6)  For.  real  estate — Once  every  two  years,  in  Arkansas; 
three  years,  in  District  of  Columbia;  four  years,  in  Illinois;  four  years, 
in  Indiana;  two  years,  in  Iowa;  two  years,  in  Kansas;  two  years,  in 
Minnesota;  four  years,  in  Mississippi;  four  years,  in  North  Carolina; 
ten  years,  in  Ohio;  four  years,  in  South  Carolina;  two  years,  in  Ten- 
nessee; four  years,  in  Vermont;  five  years,  in  "Virginia;  usually  ten 
years,  in  WTest  Virginia;  and  two  years,  in  Washington,  (c)  Mary- 
land has  a  "fundamental  assessment"  roll,  made  in  1896  and  revised 
in  part  biennially. 

Date  of  the  assessment. — In  most  states  the  date  to 
which  the  assessment  refers  is  very  carefully  defined 
in  order  to  determine  which  of  several  holders  of  prop- 
erty in  succession  shall  pay  the  tax.  In  only  six 
states  does  it  seem  to  be  indeterminate  or  left  to  be 
determined  by  the  local  authorities,  and  even  in  these 
states  it  must  fall  within  the  comparatively  short 
period  allowed  the  assessor  for  making  up  his  rolls. 

The  determination  of  the  date  has  a  very  important 
bearing  on  the  contents  of  the  assessment  roll  and  upon 
the  interpretation  of  the  census,  figures.  It  is  usually 
placed  in  the  winter  or  spring,  the  object  being  to 

1  For  local  taxes  only. 


avoid  imposing  a  tax  upon  the  harvest  of  the  year. 
When  a  later  date  is  chosen,  there  are  elaborate  pro- 
visions exempting  the  crops  of  the  year  from  taxation. 

Property  is  to  be  assessed  to  the  owner,  and  at  the  value  it  had  on — 

January — 1,  Florida;  second  Monday,  Idaho;  1,  Iowa,  Louisiana,  and 
South  Carolina;  10,  Tennessee;  1,  Texas;  real  estate  only,  1,  Vir- 
ginia; 1,  Hawaii. 

February — first  Monday,  Arizona;  personal  property  only,  first  Mon- 
day, Indian  Territory;  1,  Mississippi;  first  Monday,  Utah;  personal 
property  only,  1,  Virginia. 

March — first  Monday,  California,  Kansas,  Montana,  and  Nevada; 
1,  New  Mexico  and  Oklahoma;  first  Monday,  Oregon;  1,  Washington. 

April — 1,  Georgia,  Illinois,  Indiana,  and  Maine;  second  Monday,  Michi- 
gan; 1,  Nebraska,  New  Hampshire,  and  North  Dakota;  day  before 
the  second  Monday,  Ohio;  1,  Vermont  and  West  Virginia;  lumber 
only,  1,  Wisconsin;  1,  Wyoming. 

May — 1,  Colorado,  Massachusetts,  Minnesota,  and  South  Dakota; 
except  real  estate  and  lumber,  1,  Wisconsin. 

June — first  Monday,  Arkansas;  real  estate  only,  first  Monday,  Indian 
Territory;  1,  Missouri  and  North  Carolina. 

July — 1,  District  of  Columbia. 

September — 15,  Kentucky;  second  Monday,  Pennsylvania. 

October — 1,  Alabama  and  Connecticut.1 

Indeterminate — Delaware,1  Maryland,  New  Jersey,1  New  York,  Rhode 
Island;  real  estate  only,  Wisconsin. 

Statement  of  taxpayer. — Statements  under  oath  set- 
ting forth  the  amount  of  property  owned  or  held  under 
his  control  are  required  or  may  be  required  of  each 
taxpayer  in  every  state  and  territory  except  New 
York. 

Although  in  some  states  the  taxpayer  is  required 
both  to  list  and  to  value  his  property,  yet  in  general 
the  assessor  or  the  reviewing  authorities  may  adopt 
and  enter  another  valuation. 

(1)  In  the  following  states  the  oath  which  the  tax- 
payer is  required  to  make  covers  the  correctness  and 
completeness  of  the  list  of  property  only,  and  does  not, 
cover  the  values  given.  Any  statement  made  as  to 
values  is  therefore  "idle  information." 

Alabama,  Arizona,  California,  and  Delaware;1  as  to  personal  prop- 
erty only,  in  District  of  Columbia;  in  Florida  and  Idaho;  except  as  to 
personal  property,  in  Illinois;  in  Indiana,  Iowa,  and  Kansas;  except 
land,  in  Louisiana;  in  Massachusetts,  Minnesota,  Nebraska,  Nevada, 
New  Hampshire,  North  Dakota,  Oregon,  South  Dakota,  Tennessee,  Ver- 
mont, Virginia;  except  personal  property,  in  Washington:  in  West 
Virginia  and,Wyoming. 

(2)  In  the  following  states  the  oath  covers  the  val- 
ues inserted,  but  these  values  may  nevertheless  be 
altered  by  the  assessor  or  the  reviewing  authorities: 

In  Arkansas  and  Connecticut; '  personal  property  only,  in  Illinois  and 
Indiana;  in  Indian  Territory  and  Kentucky;  lands  only,  in  Louisiana; 
in  Maine,  Maryland,  Michigan,  Mississippi,  Missouri,  Montana,  New 
Jersey,1  New  Mexico,  and  North  Carolina;  personal  property  only,  in 
Ohio;  in  Oklahoma,  Pennsylvania,1  Khode  Island,  South  Carolina,  and 
Texas;  personal  property  onty,  in  Washington;  and  in  Hawaii. 

(3)  Sworn  statement  may  be  required  at  discretion 
of  assessor: 

In  Colorado  and  Utah;  of  personal  property  and  its  values,  in  Wis- 
consin. 


628 


WEALTH,  DEBT,  AND  TAXATION. 


(4)  Differences  of  opinion  as  to  values  between  tax- 
payer and  assessor  referred  to  arbitration  or  to  board 
of  review.  Assessor  may  not  on  his  own  initiative 
alone  change  the  values: 

In  Georgia,  North  Carolina,  South  Carolina,  and  Texas;  if  statement 
be  taken,  in  Wisconsin;  in  West  Virginia. 

(5)  Although  no  statement  is  required  and  the  list- 
ing is  done  by  the  assessor  on  best  information,  yet  the 
taxpayer  has  a  right  to  come  forward  on  "grievance 
day"  and  swear  to  the  amount  and  value  of  his  per- 
sonal property: 

In  New  York. 

Rate  of  assessment. — The  statutes  everywhere  pre- 
scribe that  property  shall  be  valued  or  appraised  at  its 
full  cash  value;  but  there  are  a  number  of  cases  in 
which  the  assessed  value  or  the  amount  which  is  set  in 
the  list  is  legally  lower  than  the  appraised  value. 
These  cases  are: 

For  city  taxes,  70  per  cent,  in  Arizona;  real  estate,  two-thirds,  in 
District  of  Columbia;  all  property  at  one-fifth,  in  Illinois;  25  per  cent, 
in  Iowa;  by  state  board  of  equalization  70  per  cent,  in  Kentucky;  50 
cents  on  each  $100,  in  New  Hampshire;  each  $100  as  $1,  in  Vermont. 

In  a  few  cases,  not  all  compiled,  certain  items  of 
property  are  given  an  arbitrary  valuation,  as  plate  and 
polls  in  Delaware. 
Assessment  of  certain  classes  of  property  by  state  boards 

(exclusive  of  taxes  other  than  those  on  property) : 

Railroad  property — In  Alabama,  Arizona,  Arkansas,  California,  Colo- 
rado, Florida,  Georgia,  Idaho;  except  the  Illinois  Central  Railroad, 
in  Illinois;  in  Indian  Territory,  Indiana,  Iowa,  Kansas,  Kentucky, 
Louisiana,  Michigan,  Mississippi,  Missouri,  Montana,  Nebraska,  New 
Hampshire,  New  Jersey,  and  New  Mexico;  for  special  franchises,  in 
New  York;  in  North  Carolina  and  North  Dakota;  boards  composed 
of  county  auditors  of  counties  through  which  road  runs,  in  Ohio;  in 
Oklahoma,  South  Carolina,  South  Dakota,  Tennessee,  and  Utah;  if 
not  taxed  on  gross  earnings,  in  Vermont;  in  Virginia,  West  Virginia, 
and  Wyoming. 

Telegraph  companies — In  Alabama,  Arkansas,  Colorado,  Georgia,  Idaho, 
Indiana,  Iowa,  Kansas,  Louisiana,  Minnesota,  Mississippi,  Missouri, 
Nebraska,  New  Hampshire,  New  Mexico,  North  Carolina,  North 
Dakota,  Ohio,  South  Carolina,  South  Dakota,  Tennessee,  Utah, 
Virginia,  West  Virginia,  and  Wyoming. 

Telephone  companies — In  Alabama  and  Colorado;  for  state  taxes  only, 
in  Connecticut;  in  Georgia,  Idaho,  Indiana,  Iowa,  Kansas,  Louisiana, 
Mississippi,  Missouri,  New  Hampshire,  New  Mexico,  North  Carolina, 
North  Dakota,  Ohio,  South  Carolina,  South  Dakota,  Tennessee,  Utah, 
Virginia,  West  Virginia,  and  Wyoming. 

Sleeping  car.  dining  car,  palace  car  companies,  etc. — In  Arkansas,  Colo- 
rado, Georgia,  Indiana,  Iowa,  Louisiana,  Michigan,  Mississippi,  Mis- 
souri, Nebraska,  New  Mexico,  North  Carolina,  North  Dakota,  Ohio, 
Oklahoma,  South  Carolina,  South  Dakota,  Utah,  Virginia,  West  Vir- 
ginia, Wisconsin,  and  Wyoming. 

Express  companies — In  Arkansas  and  Colorado;  for  state  taxes  only,  in 
Connecticut;  in  Georgia,  Indiana,  Iowa,  Louisiana,  Michigan,  Missis- 
sippi, Missouri,  North  Carolina,  North  Dakota,  Ohio,  South  Carolina, 
South  Dakota,  Virginia,  West  Virginia,  Wisconsin,  and  Wyoming. 

Freight  line  and  equipment  companies — In  Colorado,  Georgia,  Indiana, 
Iowa,  Michigan,  Minnesota,  Missouri,  North  Carolina,  North  Dakota, 
Ohio,  Oklahoma,  Utah,  Virginia,  West  Virginia,  Wisconsin,  and 
Wyoming. 


Street  railroads — Florida,  Georgia,  Indiana,  Missouri,  North  Carolina, 
Ohio,  Utah,  and  West  Virginia. 

Special  provisions. — Improvements  on  land  are  sep- 
arately assessed : 

In  Arizona,  Arkansas,  California,  Colorado,  Idaho,  Indian  Territory, 
Indiana;  in  certain  cities  only,  in  Kentucky;  in  Maryland,  Massachu- 
setts, Montana,  Minnesota,  Nebraska,  Nevada,  New  Hampshire;  may 
be  assessed,  in  New  Jersey;  in  New  Mexico;  since  1903,  in  New  York; 
in  North  Carolina,  North  Dakota,  Ohio,  Pennsylvania,  South  Dakota, 
Utah,  Virginia,  Washington,  West  Virginia,  and  Wyoming. 

Shares  of  bank  stock  are  assessed  at  the  bank *  in 
the  name  of  the  shareholders,  at  market  or  book  value 
of  shares,  or  at  the  same  rate  as  other  personal  prop- 
erty, with  allowance  for  any  property  assessed  and 
taxed  to  the  bank: 

In  Alabama,  Arizona,  Arkansas,  Colorado;  national  banks  only,  in 
Florida;  in  Georgia;  national  banks  only  in  Idaho;  in  Illinois,  Indian 
Territory,  Indiana,  Iowa,  Kansas,  Louisiana,  Massachusetts,  Michigan, 
Minnesota,  Mississippi,  Missouri,  Montana,  Nebraska,  New  Mexico;  for 
state  taxes,  in  North  Carolina;  in  North  Dakota  and  Ohio;  national 
banks  only,  in  Oklahoma  and  Rhode  Island;  in  South  Carolina,  South 
Dakota,  Tennessee,  and  Utah;  for  state  taxes,  in  Virginia;  in  Washing- 
ton and  Wisconsin. 

Bank  stock  is  assessed  to  the  shareholder  where  he 
resides,  unless  out  of  the  state,  then  at  place  where 
bank  is  located: 

In  Maine,  Maryland,  New  Hampshire,  New  Jersey;  for  local  taxes,  in 
North  Carolina;  in  Oregon;  other  than  national,  in  Rhode  Island;  in 
Texas,  Vermont,  and  Hawaii. 

Bank  stock  is  assessed  in  the  name  of  the  bank: 

In  Oklahoma. 

Bank  stock  is  not  taxed: 

In  California  and  Nevada. 

Banks  are  subject  to  special  corporation  tax: 

In  Connecticut,  Delaware,  District  of  Columbia,  Kentucky,  Nev 
York,  and  Pennsylvania. 

c.  Equalization. — There  is  universally  some  provi- 
sion for  a  review  of  the  assessor's  roll  and  for  the  set- 
tlement of  differences  between  him  and  the  taxpayer 
in  regard  to  the  assessment. 

In  those  states  or  portions  of  states  where  the  town- 
ship system  of  tax  administration  prevails  the  review- 
ing power  is  vested  in  a  local  board,  either  specially 
constituted  for  the  purpose  or  composed  of  the  local 
legislative  or  representative  body. 

In  those  states  or  portions  of  states  where  the 
county  system  of  tax  administration  prevails  there  is 
usually  a  combination  of  the  power  to  review  with 
that  of  equalization  proper  in  the  hands  of  a  county 
board. 

The  methods  of  review  are  so  nearly  uniform 
throughout  the  country,  and  the  differences  in  detail 
have  so  little  bearing  on  the  contents  of  the  assess- 


1  Shares  of  stock  in  banks  assessed  at  par  value  in  Wyoming. 


TAXATION  AND  REVENUE  SYSTEMS. 


629 


ment  rolls,  that  the  provisions  of  the  statutes  relating 
to  review  have  not  been  summarized. 

Equalization,  in  the  strict  sense,  involves  the  idea 
ol  raising  or  lowering  the  assessment  by  districts  or 
by  classes  of  property  in  order  to  produce  uniformity. 
It  aims  to  correct  general  rather  than  individual  or 
personal  inequalities. 

The  work  of  a  town  or  village  board  of  review  can 
scarcely  be  called  equalization,  but  the  boards  of  re- 
view in  large  cities  often  adjust  or  equalize  differences 
between  wards  or  assessment  districts  in  a  manner 
which  could  properly  be  called  equalization. 

Equalization  proper  usually  begins  with  the  county, 
and  is  completed  by  a  state  board  which  adjusts  dif- 
ferences between  the  counties. 

In  states  having  the  county  system  of  tax  adminis- 
tration the  functions  of  review  and  of  equalization  for 
the  county  are  usually  combined  in  the  county  board 
of  equalization  in  an  inseparable  manner. 

States  in  which  there  is  no  provision,  or  only  partial 
provision,  for  equalization: 

(1)  ATo  county  equalization. — Alabama,  Connecticut, '  Georgia,  Louisi- 
ana, Maine,'  Massachusetts,'  New  Hampshire,1  Rhode  Island,1  Ver- 
mont, Virginia,  and  West  Virginia. 

(2)  No  state  equalization. — Alabama,  Arkansas,  Delaware,2  Florida, 
Georgia,  Indian  Territory,  Louisiana,  Maryland,  Massachusetts,3  Missis- 
sippi, Nevada,4  Oregon,  Rhode  Island,3  Texas,  Vermont,  and  Virginia. 

States  in  which  there  is  provision  for  equalization: 

(1)  County  equalization: 

(a)  County  boards  empowered  to  raise  or  lower  any  assessment 
(usually  combined  with  powers  of  review) — In  Arizona,  Arkansas,  Cali- 
fornia, Colorado,  Delaware:  district,  in  District  of  Columbia;  power  to 
raise  only,  in  Idaho;  some  counties,  in  Illinois;  in  Indiana,  Iowa, 
Kansas,  Kentucky.  Maryland,  Mississippi,  Missouri,  Montana,  Nevada, 
New  Jersey,  New  Mexico,  North  Carolina;  the  annual  boards,  in 
North  Dakota;  in  Oregon;  personal  property  only,  except  at  time  of 
the  triennial  assessment,  in  Pennsylvania;  in  some  counties  in  South 
Dakota;  in  Tennessee,  Texas,  Utah,  Washington,  and  Wyoming. 

(b)  Same  as  (a),  but  such  boards  may  not  raise  or  lower  the  aggregate 
as  returned  by  the  assessors — Real  estate  only,  in  Florida;  may  raise 
but  not  reduce,  in  North  Dakota;  decennial  boards  may  raise  but  not 
reduce,  in  Ohio  and  South  Carolina. 

(c)  Among  the  above,  boards  may  raise  or  lower  classes  of  property 
separately — In  Colorado,  Illinois.  Indiana,  North  Carolina,  South 
Dakota,  and  Washington. 

til)  County  boards  may  raise  or  lower  the  assessment  in  any  town, 
township,  or  other  assessment  district  in  the  county — In  some  counties, 
in  Illinois;  in  Indiana,  Iowa,  Michigan,5  Oklahoma,  Pennsylvania, 
South  Carolina,  and  Wisconsin."' 

(e)  Same  as  (<■/),  but  may  not  lower  the  aggregate — In  Minnesota, 
Nebraska,  New  York,  North  Dakota,  Ohio,  and  South  Dakota. 

(2)  State  equalization: 

(a)  State  or  territorial  board  of  equalization  may  raise  or  lower  the 
assessment  of  any  county — In  California,  Colorado,  Indiana,  and  Iowa; 
must  take  70  percent  as  standard,  in  Kentucky;  once  every  five  years, 


'Except  as  incidental  to  the  apportionment  of  the  county  taxes. 
-  No  state  tax. 

3  Except  as  incidental  to  the  apportionment  of  state  taxes. 

4  But  assessors  meet  annually  and  agree  upon  rates  of  assessment  for 
classes  of  property. 

'Practically  incidental  to  apportionment  state  and  county  taxes. 


in  Michigan;  in  Montana,  New  Jersey,  New  Mexico,  North  Carolina; 
specified  items,  in  Pennsylvania;  real  estate  quadrennially,  other 
property  annually,  in  South  Carolina;  in  Tennessee,  Utah,  Washington; 
decennially,  real  estate  only,  in  West  Virginia;  in  Wisconsin;  real 
property  only,  in  Wyoming;  in  any  assessment  district,  in  Hawaii. 

(4)  Same  as  (a),  but  state  board  may  not  reduce  the  aggregate  as 
returned  by  all  assessors  (or  county  boards) — In  Arizona;  not  more 
than  15  per  cent,  in  Idaho;  not  more  than  10  per  cent,  in  Illinois;  in 
Kansas;  not  more  than  1  per  cent,  in  Minnesota;  real  estate  only,  in 
New  York;  not  more  than  1  per  cent,  in  North  Dakota;  decennially, 
for  real  estate  only,  in  Ohio;  in  Oklahoma;  not  increase  more  than 
$3,000,000,  in  South  Dakota. 

(c)  Among  the  above  the  state  board  may  change  the  valuation  of 
classes  of  property  separately — In  Idaho,  Illinois,  Iowa,  Minnesota, 
Missouri,  Oklahoma,  South  Dakota,  Utah,  and  Washington. 

(d)  in  Nebraska  equalization  is  accomplished  by  changing  the  rate  of 
taxation  in  each  county. 

(e)  State  boards  of  equalization  may  raise  or  lower  the  assessment  of 
any  town,  township,  or  other  assessment  district — In  Connecticut,9 
Indiana,  Maine,  New  Hampshire;  county  as  well,  in  South  Carolina. 

2.  Rate— 

The  tax  rate  is  the  amount  of  tax  falling  on  each 
unit  of  the  base.  The  unit  of  the  base  in  the  general 
property  tax  is  commonly  either  $100  of  assessed  val- 
uation of  property  or  $1  of  the  same.  In  the  former 
case  the  rate  is  expressed  as  so  many  cents  or  dollars 
and  cents  on  each  $100;  in  the  latter  case,  as  so  many 
mills  on  the  dollar,  50  cents  on  each  $100  being  equiva- 
lent to  5  mills  on  the  dollar.  In  Vermont  the  rate  is 
expressed  as  so  many  cents  or  dollars  and  cents  on 
each  "dollar  in  the  grand  list."  But  each  "dollar  in 
the  grand  list"  stands  for  $100  worth  of  property. 

Tax  rates  can  not  be  compared  directly  without  a 
knowledge  of  the  rate  of  assessment  determined  by 
law,  or  custom,  which  often  overrides  the  law.  In 
seven  states,  as  shown  above,  the  law  provides  for 
assessment  at  less  than  true  value,  while  in  practically 
all  the  others,  custom  sets  a  value  lower  than  the  true 
one. 

In  the  following  summary  the  statement  of  rates 
has  been  abbreviated  by  the  omission  of  the  expressed 
unit  of  the  base,  and  it  will  be  readily  understood 
that  when  the  rate  is  given  as  so  many  mills  the  words 
"on  each  dollar  of  assessed  valuation  of  property" 
have  been  omitted;  when  given  in  cents  the  words 
"on  each  $100  of  assessed  valuation  of  property" 
have  been  omitted. 

Limitation. — The  rate  of  taxation  for  state  purposes 
is  limited  by  the  constitution  or  by  general  statute  to : 

Sixty -five  cents,  in  Alabama:  1  per  cent,  in  Arkansas;  4  mills,  in 
Colorado;  5  per  cent,  in  Illinois;7  6  mills,  in  Louisiana;  25  cents,  in 
Missouri;  3  mills,  in  Montana;  special  rates  for  each  of  three  funds,  in 
Nebraska;  4  mills,  in  North  Dakota:  special  rates  for  each  of  nine 
funds,  in  Oklahoma;  5  mills,  in  Oregon;  2  mills,  in  South  Dakota;  for 
schools,  20  cents,  in  Texas:  4  to  8  mills,  according  to  size  of  total  assess- 
ment, in  Utah;  3  mills,  in  Washington;  4  mills,  except  for  education, 
charity,  and  debt,  in  Wyoming;  5  mills,  in  Hawaii. 

6  State  does  not  ordinarily  levy  a  tax  on  general  property. 

7  Assessed  valuation  is  one-fifth  of  the  true  value. 


630 


WEALTH,  DEBT,  AND  TAXATION. 


Determination  of  the  rate. — The  actual  rate  to  be 
levied  is  determined,  within  any  limits  which  may  be 
set,  as  shown  above : 1 

1.  By  general  statute,  subject  to  amendment  as  other  statutes — In 
Alabama,  Arizona,  Arkansas,  Colorado,  District  of  Columbia,  Kentucky 
Louisiana,  and  Missouri;  for  personalty  taxed  by  state,  in  Pennsylvania; 
in  Rhode  Island,  Tennessee,  and  Texas;  for  schools  and  roads,  in  Ver- 
mont; in  Virginia  and  West  Virginia;  certain  rates,  in  Wyoming. 

2.  By  special  statute  at  each  session  of  the  legislature — In  Florida, 
Georgia,  Indiana,  Maryland,  Mississippi,  Nevada,  New  Mexico,  North 
Carolina,  Ohio,  and  Oklahoma;  occasionally,  additional  special  taxes, 
in  Rhode  Island;  in  South  Carolina  and  Vermont. 

3.  By  a  state  board  or  by  some  official  acting  under  authority  of  the 
legislature  who  apportions  the  appropriations  or  certain  appropriations 
on  the  assessed  valuation — In  Arizona;2  in  California,  Colorado, 
Florida,3  Georgia,2  Illinois,  Iowa,  Kansas,  Minnesota,  Montana,  Nebraska, 
Nevada,2  New  York,  North  Dakota,  and  Oklahoma;2  on  basis  of 
expenditures,  in-  Oregon;  in  South  Dakota,  Utah,  Washington,  Wis- 
consin, Wyoming,2  and  Hawaii. 

4.  No  universal  state  rate  named,  taxes  for  state  purposes  being 
apportioned  in  lump  sums  to  each  taxing  district — In  Idaho,  Maine, 
Massachusetts,  Michigan,  and  New  Hampshire. 

5.  Special  rates  provided  by  the  constitution  or  general  statutes  for 
schools  are  levied  annually  without  reference  to  above  methods  of  deter- 
mining the  rate — one  mill  on  the  dollar,  in  Florida,  Maine,  Michigan,  and 
Wisconsin.     (These  are  popularly  known  as  "the  mill  tax.") 

3.   Collection. — State  taxes,  except  of  certain  cor- 
porations, are  collected  by — 

(a)  County  tax  collector: 

In  Alabama  and  Arizona;  sheriff,  in  Arkansas;  in  California,  Colo- 
rado, Florida,  Georgia,  and  Idaho;  some  counties,  in  Illinois;  in  Indiana, 
Iowa,  Kansas,  Kentucky,  Louisiana,  Maryland,  and  Minnesota;  sheriff, 
in  Mississippi;  in  Missouri,  Montana,  Nebraska,  Nevada,  and  New 
Mexico;  sheriff,  in  North  Carolina;  in  North  Dakota  and  Ohio;  sheriff, 
in  Oklahoma;,  county  responsible  in  corporate  capacity,  in  Oregon;  in 
South  Carolina;  some  counties,  in  South  Dakota;  in  Tennessee,  Texas, 
Utah,  Virginia,  Washington,  West  Virginia,  and  Wyoming;  the  assessor 
of  the  division,  in  Hawaii. 

(b)  Township  collectors: 

Some  counties,  in  Illinois;  in  New  York  and  Pennsylvania;  some 
counties,  in  South  Dakota:  in  Wisconsin. 

(c)  Towns  which  are  responsible  in  their  corporate 
capacity: 

In  Maine,  Massachusetts,  Michigan,  New,  Hampshire,  Rhode  Island, 
and  Vermont. 

Except  on  personal  property  unsecured,  such  taxes 
become  due  immediately  on  assessment,  by  assessor: 
In  Arizona,  California,  Montana,  and  Nevada. 

Collector's  compensation — by  salary  or  per  diem  in 
most  states,  but  by  fees  and  commissions: 

In  Alabama,  Arkansas,  Florida,  Georgia,  Kentucky,  Louisiana, 
Maryland,  Michigan,  Missouri,^New  York,  Pennsylvania, South  Carolina, 
and  Virginia. 

Taxes  become  due: 

January — First  Monday,  Arkansas  and  Indian  Territory;  one-half 
real  estate  first  Monday,  California;  10,  Illinois;  first  Monday,' 
Iowa;  personal  property,  1,  real  estate,  first  Monday,  Nebraska. 

1  The  specific  rates  fixed  by  general  or  special  statutes  are  omitted. 
2 Merely  promulgates  the  rate  fixed  as  under  "  1 "  or  "2,"  above. 
3Governor  empowered  to  lower  the  rate,  set  under  "2,"  above. 


February — One-half,  1,  New  Mexico. 

March — 1,  Indiana. 

April — 1,  Kentucky;  one-half,  first  Monday,  Oregon. 

May — 1,  Minnesota. 

June — l,New  Hampshire;  one-half,  first  Monday,  Nevada;  one-half, 
15,  Rhode  Island. 

July — 1,  Virginia. 

August — One-half,  1,  New  Mexico;  1,  West  Virginia. 

September — Ten  days  after  second  Monday,  Idaho;  1,  Maine,  Mary- 
land; first  Monday,  North  Carolina,  Utah;  third  Monday,  Wyoming. 

October — 1,  Alabama;  personal  property  and  one-half  real  property 
tax,  second  Monday,  California;  1,  Georgia;  15,  South  Carolina; 
one-half,  first  Monday,  Oregon;  first  Monday,  Tennessee,  Texas. 

November — First  Monday,  Florida;  1,  Kansas,  North  Dakota;  1, 
Oklahoma. 

December — 1,  Michigan;  on  or  before  15,  Mississippi;  on  or  before 
20,  New  York;  one-half,  first  Monday,  Nevada;  1,  South  Dakota; 
one-half,  15,  Rhode  Island. 

No  date  set,  or  when  roll  is  completed  and  notice  published — Ari- 
zona, Colorado,  Louisiana ;  on  notice,  Massachusetts,  Missouri,  Mon- 
tana, Ohio,  Pennsylvania;  six  days'  notice,  Vermont,  Washington, 
Wisconsin . 

Taxes  become  delinquent: 

Januar\' — 1,  Alabama;  first  Monday,  Idaho;  1,  Maryland;  10,  Michi- 
gan; 1,  Missouri:  third  Monday,  Oklahoma:  31,  Wisconsin. 

February — One-half,  last  day,  Colorado;  personal  property,  1,  Ne- 
braska; 1,  North  Dakota;  personal  property,  30  days  after  first 
Monday,  Washington. 

March — 1,  Illinois:  one-half,  1, or  whole  if  first  installment  is  not  paid, 
Iowa;  personal  property,  1,  Minnesota:  one-half,  or  whole  if  first 
installment  is  not  paid,  1,  South  Dakota;  1,  Tennessee. 

April — Personal  property,  10,  Arkansas,  Indian  Territory;  one-half 
real  estate, last  Monday,  California;  first  Monday, Florida;  one-half, 
last  Monday,  or  whole  if  first  installment  is  not  paid,  Oregon. 

Ma}- — Real  estate,  second  Monday,  Arkansas,  Indian  Territory;  one- 
half,  first  Monday,  Indiana:  real  estate,  1,  Nebraska;  one-half  real 
estate,  31,  and  whole  if  one-half  is  not  paid,  Washington. 

June — One-half,  20,  Kansas;  one-half,  first  Monday,  Nevada;  one- 
half,  1,  New  Mexico;  one-half,  20,  Ohio;  one-half,  15,  Rhode  Island. 

July — One-half,  last  day,  Colorado. 

September — One-half,  1,  Iowa;  sixty  days  after  1,  Maine. 

October — One-half,  first  Monday ,  Oregon ;  one-half,  1,  South  Dakota. 

November — Personal  property  and  one-half  real  estate,  first  Monday, 
California:  from  towns,  10,  Connecticut;  one-half,  first  Monday, 
Indiana;  1 ,  North  Carolina ;  one-half,  1,  Oregon:  2,  Tennessee;  15, 
Utah;  one-half  real  estate,  30,  Washington;  1,  West  Virginia. 

December — Third  Monday,  Arizona;  20,  Georgia;  one-half,  20,  or 
whole  if  first  installment  is  not  paid,  Kansas:  1,  Kentucky;  31, 
Louisiana:  15,  Mississippi:  first  Monday,  Montana;  one-half,  1, 
New  Mexico;  one-half,  first  Monday,  or  whole  if  first  installment  is 
not  paid,  Nevada:  thirty  days  after  20,  New  York;  one-half,  or  if 
first  installment  is  not  paid,  all,  20,  Ohio;  one-half,  15,  Rhode 
Island:  31, South  Carolina;  31,  Texas;  1,  Virginia;  31,  Wyoming. 

Not  fixed — Fourteen  days  after  notice,  Massachusetts,  New  Hamp- 
shire; sixty  days  after  notice,  Pennsylvania;  six  days  after  notice. 
Vermont. 

Penalties  for  delinquency  take  the  form  of — 
(1)  Collectors'  fees,  costs,  and  interest: 

In  Alabama  and  Florida;  7  per  cent  interest,  in  Georgia;  in  Illinois; 
1  per  cent  a  month,  in  Iowa;  2  per  cent  a  month,  in  Louisiana;  1  per 
cent  a  month,  in  Maine;  4  per  cent  collection  fee  instead  of  1  per  cent, 
the  regular  fee,  in  Michigan ;  1  per  cent  a  month,  in  Missouri ;  10  per 
cent,  in  Montana;  10  per  cent,  in  Nebraska;  10  per  cent  (and  see  next 
paragraph),  in  New  Mexico;  5  per  cent,  in  New  York;  5  per  cent,  and  on 
real  estate,  if  sold  for  taxes,  15  per  cent,  in  Ohio;  2  per  cent,  in  South 
Dakota. 


TAXATION  AND  REVENUE  SYSTEMS. 


631 


(2)  Percentage  of  taxes: 

Five  per  cent,  in  Arizona;  25  per  cent,  in  Arkansas  and  Indian  Ter- 
ritory: personal  property  and  one-half  real  estate,  15  per  cent,  one-half 
real  estate,  5  per  cent,  in  California;  one-half  taxes  1  per  cent  a  month 
to  August  1,  and  then  15  per  cent  on  all,  in  Colorado;  10  per  cent,  in 
Idaho;  one-half  10  per  cent,  one-half  6  per  cent,  in  Indiana;  one-half 
5  per  cent  plus  5  per  cent  if  not  paid  with  second  installment,  and  one- 
half  5  per  cent,  in  Kansas;  6  per  cent,  in  Kentucky;  10  per  cent,  in 
Minnesota;  10  per  cent,  in  Montana;  10  per  cent,  in  Nevada;  1  per 
cent  olus  4  per  cent  at  end  of  month  plus  10  per  cent  collection  fee,  in 
New  Mexico:  personal  property  5  per  cent,  real  estate  3  per  cent, 
November  1,  plus  3  per  cent  June  1,  plus  5  per  cent  November  1,  in 
North  Dakota:  10  per  cent  and  interest  at  12  per  cent,  in  Oregon;  10 
per  cent,  in  South  Carolina;  1  per  cent  a  month,  in  South  Dakota;  1  per, 
cent  a  month,  in  Tennessee;  10  per  cent,  in  Texas;  5  per  cent,  in  Vir- 
ginia; S  per  cent  plus  interest  at  8  per  cent,  in  Wyoming. 

(3)  Imprisonment  and  action  for  debt: 

In  Maine,  Massachusetts,  and  New  Hampshire. 

Rebates  for  prompt  or  advance  payment : 

Five  per  cent  on  second  installment  for  payment  with  first  install- 
ment, in  Kansas:  5  percent  before  September  1,  4  per  cent  October  1, 
3  per  cent  November  1,  in  Maryland;  3  per  cent  before  November  15, 
in  Oregon;  ■">  per  cent  if  paid  within  sixty  days,  in  Pennsylvania;  3 
per  cent  if  paid  before  March  15,  in  Washington;  2J  per  cent,  in 
Wist  Virginia:  5  per  cent,  in  Wisconsin. 

II.  Poll  taxes. 

There  is  no  poll  tax  for  state  purposes: 

In  Arizona,  Arkansas,  Delaware,  Florida,  Idaho,  Illinois,  Iowa,  Kan- 
sas. Kentucky,  Louisiana,  Maryland,  Michigan,  Minnesota,  Missouri, 
Montana,  Nebraska,  New  York,  North  Dakota,  Ohio,  Oklahoma,  Penn- 
sylvania, Rhode  Island,  South  Dakota,  Utah,  Washington,  Wisconsin, 
Wyoming,  and  Alaska. 

The  state  or  territorial  poll  taxes  are  levied  on : 

Mules  20  to  60  years  of  age,  in  Hawaii;  males  21  to  45  years  of  age, 
in  Alabama;  males  21  to  50  years  of  age,  in  Indiana,  North  Carolina, 
Oregon,1  and  South  Carolina ;'  males 21  to  60  years  of  age,  in  California, 
Georgia,  Mississippi,1  Nevada,  and  Texas:  males  21  to  70  years  of  age,  in 
Connecticut,1  New  Hampshire  ■  and  Vermont;1  males  over  21  years  of 
age,  in  Colorado,  Indian  Territory,1  Maine,1  Massachusetts,1  New  Jer- 
sey.1 New  Mexico,1  Tennessee,1  Virginia  and  West  Virginia. 

Exempt  are,  or  may  be: 

The  aged,  in  Maine:  clergymen,  in  Hawaii;  persons  exempt  by  law, 
in  Nevada  and  New  Hampshire;  firemen,  in  Connecticut,  New  Jersey, 
New  Mexico,  Vermont,  and  Hawaii;  persons  under  guardians,  in  Maine; 
Indians  not  taxed,  in  California,  Maine,  and  Texas;  Indians,  uncivilized, 
in  Nevada;  persons  disabled,  in  Alabamaand  .Texas;  by  loss  of  limb 
in  battle,  in  Florida;  ibid.,  in  service  of  the  Confederacy,  in  Georgia: 
infirm,  in  Maine,  Hawaii,  and  North  Carolina;  deaf-mutes,  in  Alabama, 
Mississippi,  and  Texas;  insane,  in  Alabama,  California,  New  Hampshire, 
New  Jersey,  and  Texas;  idiots,  in  New  Jersey;  blind,  in  Alabama,  Mis- 
sissippi, and  Texas;  maimed,  in  Mississippi;  members  of  national  guard 
or  militia,  in  Alabama,  Colorado,  Connecticut,  Vermont,  and  Hawaii;  per- 
sons having  less  than  $500  worth  of  property,  in  Alabama;  paupers,  in 
California,  New  Hampshire,  New  Jersey,  and  Vermont;  poor,  in  Maine 
and  North  Carolina;  persons  unable  to  earn  a  living,  in  South  Carolina 
and  Tennessee;  indigent,  in  Hawaii;  soldiers  and  (or)  sailors  of  the 
United  States,  in  Connecticut  and  New  Jersey,  if  disabled,  in  Vermont; 
students,  in  Connecticut;  trustees,  school,  in  Alabama. 

1  For  methods  of  levying  tax  or  reporting  receipts,  see  text  of  state 
revenue  systems. 


The  rate  is: 

$1.50,  in  Alabama;  $2,  in  California;  $1,  in  Colorado,  Connecticut, 
Georgia,  Indian  Territory,  and  Indiana;  $1  to  $3,  in  Maine;  $2,  in 
Massachusetts  and  Mississippi ;  $3,  one-half  county,  in  Nevada;  $1,  in 
New  Jersey  and  New  Mexico;  in  1902,  $1.29,  in  North  Carolina;  $1,  in 
Oregon,  South  Carolina,  Tennessee,  Texas,  Virginia,  West  Virginia, 
and  Hawaii. 

Levied  as  (1)  part  of  general  taxes  on  property  and 
polls : 

Assessed  as  property  at  50  cents  equal  to  $100,  in  New  Hampshire; 
set  in  the  list  at  $2  equal  to  $200,  in  Vermont. 

(2)  Military  tax,  or  military  commutation  tax: 

Base,  males  18  to  45  enrolled,  in  Connecticut  and  North  Carolina. 
Rate,  $2. 

III.   Inheritance  taxes. 

These  taxes  are  levied  upon  property  passing  by 
will,  or  by  the  intestate  laws,  or  by  transfer  intended 
to  take  effect  after  death,  and  vary  in  rate  with  the 
different  classes  of  heirs  and  amounts  of  property. 

The  details  also  vary  greatly  from  state  to  state  and 
show  so  few  uniformities  as  to  make  a  general  sum- 
mary difficult.  But  there  are  a  number  of  broad 
general  principles  easily  discernible.  In  general,  col- 
lateral heirs  (including,  by  common  usage  in  this  con- 
nection, strangers  in  blood)  are  more  heavily  taxed 
the  farther  removed  from  the  decedent,  while  direct 
heirs  are  either  exempted  entirely  or  much  more  lightly 
taxed.  It  should  be  noted  that  the  terms  "direct 
heirs "  and  "collateral  heirs, "  as  defined  for  purposes  of 
taxation  or  used  to  distinguish  the  different  kinds  of 
inheritance  taxes,  do  not  have  their  strict  legal  mean- 
ings. Thus  brothers,  nephews,  and  nieces  are  often 
grouped  with  the  direct  heirs,  while  strangers  in  blood 
are  almost  always  included  with  collateral  heirs.  In 
some  states  there  are  other  classes.  The  line  of  demar- 
cation between  direct  and  collateral  heirs  varies  from 
state  to  state,  as  do  the  abatements  allowed  and  the 
rates  on  classes  interposed  between  direct  and  collateral 
heirs.  At  one  extreme  is  Delaware,  which  taxes  only 
strangers  in  blood;  at  the  other  is  Utah,  which  taxes 
all  inheritance  without  distinction  as  to  classes  of  heirs. 

The  inheritance  taxes  are  changing  rapidly,  the 
greater  number  of  states  having  adopted  them  within 
the  past  ten  years.  Every  biennial  legislative  period 
brings  new  laws,  and  amendments  to  the  old.  The 
courts  have  not  fully  determined  the  constitutional 
questions  involved,  and  are  constantly  modifying  the 
interpretation  put  upon  the  law.  To  bring  the  com- 
pilation down  to  1905  would  add  at  least  three  states 
and  materially  modify  the  statements  in  regard  to  at 
least  five  more. 

No  inheritance  tax. — There  was  no  inheritance  tax 
in  1902  in  the  following  states: 

Alabama,  Arizona,  District  of  Columbia,  Florida,  Georgia,  Idaho, 
Indian  Territory,  Indiana,  Kansas,  Kentucky,  Louisiana,  Minnesota, 


632 


WEALTH,  DEBT,  AND  TAXATION. 


Mississippi,  Nevada,  New  Hampshire,  New  Mexico,  North  Dakota,1 
Oklahoma,  Oregon,1  Rhode  Island,  South  Carolina,  South  Dakota, 
Texas,  Wyoming,1  and  Alaska. 

Collateral  inheritance  tax  only. — The  following  states 
in  1902  taxed  collateral  heirs  only: 

Arkansas,  California,2  Delaware,  Hawaii,  Iowa,  Maine,  Maryland, 
Massachusetts,  Missouri,  New  Jersey,  Ohio,3  Pennsylvania,  Tennessee, 
Vermont,  Virginia,  and  West  Virginia. 

There  is  a  general  exemption  of  property  passing  to 
charitable,  benevolent,  religious,  or  educational  insti- 
tutions or  societies,  or  to  similar  institutions,  when 
exempt  from  the  general  property  tax. 

1.  Among  those  usually  classed  as  direct  heirs  who 
were  exempt  there  were  included: 

(a)  The  father,  mother,  husband,  wife,  and  child,  or  lineal  issue,  in  all 
of  the  above  states,  (b)  The  adopted  child,  in  all  except  Delaware, 
Maryland,  New  Jersey,  Pennsylvania,  and  Tennessee,  (c)  The  descend- 
ant of  an  adopted  child,  in  Arkansas  and  Ohio,  (d)  The  wife  or  widow 
of  a  son  and  the  husband  of  a  daughter,  in  California,  Maine,  Massa- 
chusetts, New  Jersey,  Ohio,  Pennsylvania,  Tennessee,  and  Vermont. 
(e)  The  brother  and  sister,  in  Delaware,  Massachusetts,  New  Jersey, 
Ohio,  Tennessee,  and  Virginia.  (/)  Ancestors,  in  Delaware  and  Cali- 
fornia; grandfather  and  grandmother  only,  in  Virginia,  (g)  The  niece 
and  nephew,  in  Delaware4  and  Ohio. 

2.  Estates  are  exempt  if  not  over  (or  less  than)  the 
following  amounts: 

$250,  in  Pennsylvania  and  Tennessee;  $500,  in  California,  Delaware, 
Hawaii,  Maryland,  and  New  Jersey;  $l,000,in  Iowa  and  West  Virginia;    i 
$2,000,  in  Vermont. 

I 

3.  Distributive  shares  are  exempt  if  not  over  (or 

less  than)  the  following  amounts  (not  including  exemp- 
tions brought  about  by  abatement) : 

$500,  in  Massachusetts. 

4.  Distributive  shares  enjoy  an  abatement  of,  or 
are  taxed  on  the  excess  over,  the  following  amounts:  j 

$200,  in  Ohio;  $500,  in  Maine. 

5.  The  rate  of  the  collateral  inheritance  tax  when 
not  accompanied  by  a  direct  inheritance  tax  Was  5  per 
cent  in  all  but  the  following  states : 

2 J  per  cent  in  Maryland  and  West  Virginia;  4  per  cent  in  Maine. 

Direct  and  collateral  inheritance  tax.  — The  following 
states  taxed  in  1902  both  direct  and  collateral  in- 
heritance : 

Colorado,  Connecticut,  Illinois,  Michigan,  Montana,  Nebraska,  New 
York,  North  Carolina,  Utah,  Washington,  and  Wisconsin. 

1.  There  is  only  one  state,  namely,  Utah,  which 
taxes  all  inheritances  without  distinction  between 
heirs. 

In  Utah  the  rate  is  5  per  cent  on  the  excess  of  all  estates  over  $10,000. 

1  These  three  states  adopted  an  inheritance  tax  since  1902  and  before 
1905. 

2  California  adopted  an  entirely  new  law  and  included  direct  heirs 
in  1905. 

*  Ohio  adopted  a  direct  inheritance  tax  in  1903. 

4  In  Delaware  the  tax  applied  to  strangers  in  the  blood  only. 


2.  In  the  following  states  there  were  in  1902  two 
classes  of  heirs  subject  to  the  tax  and  only  two  classes, 
direct  and  collateral: 

Connecticut,  Michigan,  Montana,  and  New  York.  And  among  these 
Michigan  and  New  York  taxed  direct  heirs  on  personal  property  only. 

(a)  Among  those  included  under  direct  heirs  and 
taxable  as  such  in  these  states  were: 

The  father,  mother,  husband,  wife,  and  child  or  lineal  issue,  and 
adopted  child,  in  all  four  states;  the  brother,  sister,  wife  or  widow  of  a 
son,  or  husband  of  a  daughter,  in  all  but  Connecticut. 

(b)  Direct  heirs  are  not  taxed  if  the  inheritance  comes 
from  an  estate5  of: 

Less  than  $7,500,  in  Montana;  less  than  $10,000  of  personal  property 
(all  estates  consisting  of  real  property  only  being  exempt  for  direct  heirs), 
in  New  York. 

(c)  They  are  taxed  only  on  their  share  of  the  estate : 
Over  $10,000,  in  Connecticut:  over  $20,000,  in  Michigan. 

(d)  Collateral  heirs  are  not  taxed  if  the  inheritance 
comes  from  an  estate  of: 

Less  than  $500,  in  Michigan,  New  York,  and  Montana ;  and  only  on 
their  share  of  the  estate  over  $10,000,  in  Connecticut. 

(e)  The  rates  for  direct  heirs  are: 

One-half  of  1  per  cent,  in  Connecticut;  1  per  cent,  in  Michigan,  Mon- 
tana, and  New  York.  The  rate  for  collateral  heirs  is  5  per  cent  in  all  of 
the  four  states. 

3.  In  the  following  states  heirs  are  divided  into 
three  classes,  corresponding  generally  to  the  ideas  of 
direct  and  collateral  heirs  and  strangers  or  distant 
relatives : 

Colorado,  Illinois,  Nebraska,  and  Washington. 

(a)  Among  those  classed  as  direct  heirs  are: 

Father,  mother,  husband,  wife,  lineal  descendant,  and  adopted  child, 
in  Colorado,  Illinois,  Nebraska,  and  Washington;  descendant  of  an 
adopted  child,  in  Washington ;  brother,  sister,  wife  or  widow  of  a  son,  or 
husband  of  a  daughter,  in  Colorado,  Illinois,  and  Nebraska. 

(b)  Direct  heirs  are  taxable  only  on  the  excess  of 
their  shares: 

Over  $10,000,  in  Colorado,  Nebraska,  and  Washington;  $20,000,  in 
Illinois. 

(c)  Collateral  heirs  are  taxable  only  on  the  excess  of 
their  shares : 

Over  $500,  in  Colorado;  $2,000,  in  Illinois  and  Nebraska. 

(d)  "Other  heirs "  are  not  taxable  if  their  shares  are 
less  than  $500 : 

In  Colorado. 

(e)  The  rates. for  direct  heirs  are: 

On  taxable  shares  or  estates,  1  per  cent,  in  Illinois,  Nebraska,  and 
Washington;  2  per  cent,  in  Colorado. 

5  One  of  the  chief  difficulties  in  the  interpretation  of  inheritance  tax 
laws  lies  in  the  ambiguity  found  in  many  states  as  to  whether  it  is  the 
size  of  the  "estate"  from  which  the  inheritance  comes  or  the  size  of  the 
''share"  going  to  a  particular  heir  that  determines  the  classification. 
There  is  frequent  litigation  on  this  point  and  the  matter  has  not  been 
clearly  decided  in  many  cases.  The  text  from  this  point  on  gives  in 
each  case  the  interpretation  that  seems  most  probable. 


TAXATION  AND  REVENUE  SYSTEMS. 


633 


{f)  The  rates  for  collateral  heirs  are : 
On  taxable  shares  or  estates,  2  per  cent,  in  Illinois  and  Nebraska;  3 
per  cent,  in  Colorado;  3  per  cent  on  the  first  $50,000,  4$  per  cent  on  the 
second  $50,000,  and  6  per  cent  .on  the  excess  over  $100,000,  in  Wash- 
ington. 

(g)  The  rates  for  ' '  other  heirs"  are : 

On  taxable  shares.  3  per  cent  on  $500  to  $10,000,  4  per  cent  on  $10,000 
to  $20,000,  5  per  cent  on  $20,000  to  $50,000,  and  6  per  cent  on  $50,000 
or  more,  in  Colorado  and  Nebraska.  The  same,  except  4  per  cent  on 
$10,000  to  $25,000,  5  per  cent  on  $25,000  to  $50,000,  'n  Illinois.  Double 
the  rates  for  collateral  heirs,  in  Washington. 

4.  Two  states,  namely,  North  Carolina  and  Wiscon- 
sin, recognize  five  classes  of  heirs,  and  their  systems 
do  not  admit  of  combination  or  condensation.  For 
details,  see  general  description  of  the  revenue  systems 
of  these  states. 

IV.   Corporation  taxes. 

There  is  a  tendency  observable  in  all  parts  of  the 
United  States  toward  the  creation  of  special  methods 
for  the  taxation  of  corporations,  the  aim  of  which  is  to 
find  a  form  of  taxation  to  reach  the  taxpaying  ability 
of  each  of  the  different  classes  of  corporations  in  the 
simplest  and  most  direct  manner.  There  is  no  aban- 
donment of  the  general  property  tax  in  cases  in  which 
that  tax  can  be  remodeled  so  as  to  reach  the  property 
of  corporations.  But  in  those  cases,  of  which  the 
insurance  companies  afford  the  best  example,  where  it 
is  practically  impossible  to  reach  the  corporations  by 
means  of  the  general  property  tax,  this  tax  is  aban- 
doned and  some  entirely  different  method  applied. 
Under  the  original  and  somewhat  primitive  idea  upon 
which  the  general  property  tax  rested,  shares  of  stock 
representing  the  property  of  the  corporation  and  the 
bonds  and  other  documents  of  a  similar  character  would 
be  taxable  to  the  stock  or  bond  holder  as  part  of  his 
property  and  the  property  of  the. corporation,  as  such, 
ignored ;  but  it  is  obviously  so  difficult  to  discover  and 
assess  shares  of  stock  in  this  manner  that  all  but  a  few 
states  have  abandoned  the  attempt,  and,  ignoring  the 
individual  shareholders  and  bondholders,  tax  the  prop- 
erty of  the  corporations. 

With  the  growth  of  corporations,  almost  all  of  the 
states  have  modified,  in  some  cases  slightly,  in  some 
more  extensively,  the  general  rules  of  taxation,  so  far 
as  they  are  applied  to  corporations.  There  are  but 
six  states  and  two  territories  which  make  no  material 
distinction  in  matters  of  taxation  between  natural 
persons  and  corporations,  viz  : 

Alabama,  Colorado,  Indian  Territory,  Louisiana,  Mississippi,  Montana, 
Nebraska,  and  Oklahoma. 

Among  these,  three  are  Southern  states — Alabama, 
Louisiana,  and  Mississippi — which  have  an  extensive 
system  of  general  license  taxes  applicable  to  corpora- 
tions as  to  natural  persons  or  firms.  These  license 
taxes  have,  especially  in  the  case  of  Louisiana,  much 
the  same  ultimate  effect  as  the  special  taxes  on  certain 


classes  of  corporations  found  in  some  of  the  Northern 
states. 

In  most  of  the  other  states  this  distinction  between 
natural  persons  and  corporations  is  confined  chiefly  to 
a  difference  in  the  methods  in  which  the  different  taxes, 
commonly  used,  are  applied  to  corporations.  Thus, 
for  example,  by  far  the  larger  number  of  states  tax 
railroads  under  the  general  property  tax,  but  many  of 
them  have  special  boards  for  the  assessment  of  railroad 
property,  and  these  boards  proceed  in  ascertaining  the 
values  in  a  manner  quite  different  from  that  of  the 
ordinary  assessor. 

In  the  matter  of  the  taxation  of  corporations,  how- 
ever, the  following  states  have  departed  widely  from 
the  older  systems  or  methods  which  are  applied  to 
natural  persons,  and  may  thus  be  regarded  as  at  the 
opposite  extreme  from  those  mentioned  above : 

Connecticut,  Delaware,  District  of  Columbia,  Maine,  Maryland,  Mas- 
sachusetts, Michigan,  Minnesota,  New  Jersey,  New  York,  Pennsyl- 
vania, Virginia,  West  Virginia,  and  Wisconsin. 

1.  The  general  property  tax  as  applied  to  corpora- 
tions.— The  general  property  tax  is  still  more  com- 
monly and  widely  applied  to  corporations  than  any 
other  system  of  taxation.  There  are  but  four  states 
which  do  not  use  the  general  property  tax  at  all  as  a 
state  tax — that  is,  as  a  tax  to  supply  revenues  for  gen- 
eral purposes — but  levy  upon  corporations  by  some 
other  method.  These  are  Connecticut,  Delaware,  New 
Jersey,  and  Pennsylvania.  And  not  even  these  states 
have  waived  the  right  to  levy  state  taxes,  even  on  the 
property  of  corporations,  under  the  general  property 
tax.  In  all,  corporations  generally  are  taxable  upon 
at  least  a  part  of  their  property  for  local  purposes. 

So  strongly  intrenched  is  the  general  property  tax 
that  in  many  states  the  constitution  prohibits,  either 
in  express  terms  or  by  implication,  the  exemption  of 
corporate  property  from  taxation  under  the  general 
property  tax  or  the  substitution  for  it  of  any  other 
,  kind  of  tax  upon  corporations.     These  are : 

Alabama,  California,  Colorado,  Florida,  Georgia,  Idaho,  Illinois, 
Indiana,  Iowa,  Kentucky,  Louisiana,  Mississippi,  Missouri,  Montana, 
Nebraska,  Nevada;  except  railroads,  North  Dakota;  Ohio,1  Oregon, 
South  Carolina,  South  Dakota,  Tennessee,  Texas,1  Utah ;  under  the  old 
constitution  but  not  under  the  new,  Virginia;1  Washington,  Wyoming. 

Even  among  these  states  there  are  variations  in  the 
application  of  the  general  property  tax  upon  all  or 
certain  classes  of  corporations: 

(1)  Franchises,  corporate  and  (or)  special,  are  often 
specifically  mentioned  as  taxable  property,  and  in 
other  cases  are  frequently  taxed  under  the  general 
property  tax  by  virtue  of  coming  under  the  general 
definition  of  personal  property.  Franchises  are  spe- 
cifically mentioned  as  taxable  property  in: 

Of  railroads,  Arizona,  California,  Colorado,  Illinois,  Indiana,  Ken- 
tucky; certain  classes  of  corporations  only,  Louisiana;  Massachusetts, 

1  These  states  levy  corporation  taxes  extensively  in  addition  to  the 
general  property  tax. 


634 


WEALTH,  DEBT,  AND  TAXATION. 


Michigan,  Minnesota,  Missouri,  Montana,  New  York,  North  Carolina; 
certain  classes  of  corporations  only,  North  Dakota;  Tennessee,  Texas; 
certain  classes  of  corporations  only,  Utah,  Washington;  Vermont, 
Wyoming. 

In  one  state,  New  York,  special  franchises  are  de- 
fined as  real  estate  in  order  to  prevent  the  deduction 
of  debts  (bonded  indebtedness)  from  franchises,  a  de- 
duction which  has  generally  been  allowed  from  all  per- 
sonal property  in  that  state. 

(2)  "The  corporate  excess,"  or  the  amount  by  which 
the  market  value  of  the  capital  stock  of  corporations 
exceeds  the  value  of  tangible  and  other  property  as- 
sessed to  the  corporations,  is  sometimes  distinctly 
specified  as  an  item  of  property  taxable  to  the  corpora- 
tions themselves,  bringing  in  an  item  similar  to  the 
good  will  of  private  individuals.  The  following  states 
are  the  only  ones  which  specifically  define  "corporate 
excess"  as  taxable  property  in  this  way,  but  it  is  prob- 
able that  the  same  item  is  taxable  in  other  states  by 
construction  of  the  general  revenue  laws.  This  list 
does  not  include  states  in  which  the  "corporate  ex- 
cess" is  taxable  to  the  stockholder  as  part  of  the  value 
of  his  holdings: 

Illinois,  Indiana,  Minnesota,  Mississippi,  Nebraska,  North  Carolina, 
North  Dakota,  South  Dakota,  and  Tennessee. 

(3)  Shares  of  stock  (contrary  to  what  might  be  ex- 
pected from  the  current  theory  of  the  general  property 
tax  and  from  views  commonly  held  in  regard  to  the 
evasion  of  taxes  on  shares  of  stock)  are  usually  not 
taxable  to  the  holder,  the  property  which  they  repre- 
sent being  taxable  to  the  corporation.  The  only  states 
in  which  it  appears  that  shareholders  are  taxable  on 
their  stock  without  reference  to  any  taxes  paid  by  the 
corporation  are: 

Delaware,  Georgia,  Louisiana,  and  Washington. 

(4)  In  the  following  states  shareholders  are,  how- 
ever, expressly  taxable  on  that  portion  of  their  hold- 
ings which  represents  the  "corporate  excess:" 

Alabama,  District  of  Columbia;  some  corporations  only,  Iowa; 
Maryland. 

(5)  One  state,  Massachusetts,  reaches  the  "corporate 
excess"  in  another  way  (see  a,  2,  page  635). 

(6)  Certain  items  of  receipts  (income)  are,  in  the  case 
of  some  corporations,  defined  as  property  for  pur- 
poses of  taxation,  to  wit : 

Gross  receipts  of  toll  bridges  and  telephone  companies,  in  Alabama. 

Gross  receipts  of  cotton  pickeries,  warehouses,  etc.,  in  Alabama. 

Gross  proceeds  of  mines,  in  Colorado,  Nevada,  South  Carolina,  and  Utah. 

Net  receipts  of  foreign  fire,  marine,  and  inland  navigation  insurance 
companies,  in  Illinois. 

Ibid.,  all  insurance  companies,  in  Nebraska  and  Oklahoma. 

Excess  of  premiums  collected  by  insurance  companies  over  losses,  in 
Montana. 

Gross  premium  receipts  of  insurance  companies,  less  dividends,  cancella- 
tions, and  commissions,  in  Ohio. 

Gross  receipts  of  foreign  bridge  companies,  in  Indiana. 

Gross  receipts  of  express  and  telegraph  companies,  in  Indian  Territory. 


(7)  There  are  state  boards  for  the  assessment  of  cer- 
tain classes  of  corporations  or  of  certain  classes  of 
corporate  property,  as  follows: 

(a)  Railroad  property:  In  Alabama,  Arizona,  Arkansas,  California, 
Colorado,  Florida,  Georgia,  Idaho;  except  the  Illinois  Central  Railroad, 
in  Illinois;  in  Indian  Territory,  Indiana,  Iowa,  Kansas,  Kentucky, 
Louisiana,  Michigan,  Mississippi,  Missouri,  Montana,  Nebraska,  New 
Hampshire,  New  Jersey,  and  New  Mexico;  for  special  franchises,  in 
New  York;  in  North  Carolina  and  North  Dakota;  boards  composed  of 
county  auditors  of  counties  through  which  road  runs,  in  Ohio;  in  Okla- 
homa, South  Carolina,  South  Dakota,  Tennessee,  and  Utah:  if  not 
taxed  on  gross  earnings,  in  Vermont ;  in  Virginia,  West  Virginia,  and 
Wyoming. 

(b)  Telegraph  companies:  In  Alabama,  Arkansas,  Colorado,  Georgia, 
Idaho,  Indiana,  Iowa,  Kansas,  Louisiana,  Minnesota,  Mississippi,  Mis- 
souri, Nebraska,  New  Hampshire,  New  Mexico,  North  Carolina,  North 
Dakota,  Ohio,  South  Carolina,  South  Dakota,  Tennessee,  Utah,  Vir- 
ginia, West  Virginia,  and  Wyoming. 

(c)  Telephone  companies:  In  Alabama  and  Colorado;  for  state  taxes 
only,  in  Connecticut;  in  Georgia,  Idaho,  Indiana,  Iowa,  Kansas,  Louisi- 
ana, Mississippi,  Missouri,  New  Hampshire,  New  Mexico,  North  Caro- 
lina, North  Dakota,  Ohio,  South  Carolina,  South  Dakota,  Tennessee, 
Utah,  Virginia.  West  Virginia,  and  Wyoming. 

(d)  Sleeping  car,  dining  car,  palace  car  companies,  etc.:  In  Arkansas, 
Colorado,  Georgia,  Indiana,  Iowa,  Louisiana,  Michigan,  Mississippi, 
Missouri,  Nebraska,  New  Mexico,  North  Carolina,  North  Dakota,  Ohio, 
Oklahoma,  South  Carolina,  South  Dakota,  Utah,  Virginia,  West  Vir- 
ginia, Wisconsin,  and  Wyoming. 

(e)  Express  companies:  In  Arkansas  and  Colorado:  for  stale  taxes 
only,  in  Connecticut;  in  Georgia,  Indiana,  Iowa.  Louisiana,  Michigan, 
Mississippi,  Missouri,  North  Carolina,  North  Dakota,  Ohio,  South  Caro- 
lina, South  Dakota,  Virginia,  West  Virginia,  Wisconsin,  and  Wyoming. 

(f)  Freight  line  and  equipment  companies:  In  Colorado.  Georgia, 
Indiana,  Iowa,  Michigan,  Minnesota,  Missouri,  North  Carolina,  North 
Dakota,  Ohio,  Oklahoma,  Utah,  Virginia,  West  Virginia,  Wisconsin, 
and  Wyoming. 

(g)  Street  railroads:  In  Florida,  Georgia,  Indiana,  Missouri,  North 
Carolina,  Ohio,  Utah,  and  West  Virginia. 

(8)  Bank  stock  is  assessed  at  the  bank  in  the  name 
of  the  shareholders,  at  market  or  book  value  of  shares, 
or  at  the  same  rate  .as  other  personal  property,  with 
allowance  for  any  property  assessed  and  taxed  to  the 
bank : 

In  Alabama,  Arizona,  Arkansas,  and  Colorado;  national  banks  only, 
in  Florida;  in  Georgia:  national  banks  only,  in  Idaho;  in  Illinois, 
Indian  Territory,  Indiana,  Iowa,  Kansas,  Louisiana,  Massachusetts, 
Michigan,  Minnesota,  Mississippi,  Missouri,  Montana,  Nebraska,  and 
New  Mexico;  for  state  taxes,  in  North  Carolina;  in  North  Dakota  and 
Ohio:  national  banks  only,  in  Oklahoma  and  Rhode  Island;  in  South 
Carolina,  South  Dakota,  Tennessee,  and  Utah;  for  state  taxes,  in 
Virginia;  in  Washington,  Wisconsin,  and  Wyoming. 

Bank  stock  is  assessed  to  the  shareholder  where  he 
resides,  unless  out  of  the  state,  then  at  place  where 
bank  is  located: 

In  Maine,  Maryland,  New  Hampshire,  and  New  Jersey;  for  local 
taxes,  in  North  Carolina;  in  Oregon;  other  than  national,  in  Rhode 
Island;  in  Texas,  Vermont,  and  Hawaii. 

Bank  stock  assessed  in  the  name  of  the  bank : 
In  Oklahoma. 

Bank  stock  not  taxed : 
In  California  and  Nevada. 


TAXATION  AND  REVENUE  SYSTEMS. 


635 


Banks  subject  to  special  corporation  tax: 

In  Connecticut,  Delaware,  District  of  Columbia,  Kentucky,  New 
York,  and  Pennsylvania. 

(9)  Bonds  of  domestic  corporations  held  by  non- 
residents of  the  state  are  taxable  at  their  market  value, 
the  tax  being  payable  by  the  corporation: 

In  Maryland  and  Pennsylvania. 

2.  Taxation  of  corporations  other  than  by  the  general 
prt> /Kity  tax. — There  are  general  or  special  corporation 
taxes  in  every  state  except  the  following  nine,  already 
mentioned  as  making  no  distinction  between  natural 
persons  and  corporations: 

Alabama,1  Alaska,1  Colorado,2  Indian  Territory,  Louisiana,1  Missis- 
sippi,',:i  Montana.  Nevada,  and  Oklahoma. 

The  following  states  make  a  distinction  between 
natural  persons  and  corporations  in  matters  relating  to 
taxation,  but  in  a  comparatively  few  cases  only,  as 
specified  below.  (X.  B. — Under  this  paragraph  the 
assessment  of  certain  kinds  of  corporate  property  by  a 
st  ate  board  is  not  treated  as  an  exception  to  the  general 
rule;  such  assessments  are  regarded  merely  as  a  par- 
ticular application  of  the  general  property  tax.  ,  For 
the  same  reasons,  license  taxes  on  corporations,  when 
part  of  the  general  license  system,  are  not  included.) 

Arizona,  foreign  insurance  companies;  Arkansas,  insurance  compa- 
nies: (California,  since  1903,  foreign  insurance  companies);  Florida,4 
insurance  companies,  sleeping  car  companies,  and  the  Southern  Express 
Company:  Georgia/  insurance  companies  (except  life  and  assessment). 
express,  telegraph,  and  telephone  companies;  Idaho,  insurance  com- 
panies; Illinois,  the  Illinois  Central  Kailroad  Company,  and  foreign 
insurance  companies,  other  than  life,  also  all  domestic  companies  are 
taxed  on  the  "corporate  excess"  as  property;  Indiana,  domestic  com- 
panies taxed  on  the  "corporate  excess,"  foreign  insurance  companies; 
IoWa,  foreign  insurance  companies:  Kansas,  foreign  insurance  com- 
panies; Kentucky,4  foreign  insurance  companies  and  foreign  building 
and  loan  associations;  Missouri,4  foreign  insurance  companies;  Ne- 
braska, foreign  insurance  companies  and  all  domestic  corporations  are 
taxed  on  the  "corporate  excess"  as  property;  New  Hampshire,  savings 
banks,  trust  companies,  building  and  loan  associations,  domestic  stock 
fire  insurance  companies,  foreign  insurance  companies;  New  Mexico, 
aheping  car  companies,  express  companies,  and  foreign  oil  companies; 
North  Dakota,  sleeping  car,  express,  and  insurance  companies  and  all 
domestic  companies  are  taxable  on  their  "corporate  excess''  as  prop- 
erty: Oregon,  foreign  insurance  companies  (since  1903,  a  small  general 
franchise  tax):  Rhode  Island,  telegraph  and  telephone  companies, 
express  companies,  savings  banks,  trust  companies,  insurance  compa- 
nies, surety  companies,  building  and  loan  associations,  and  street  rail- 
ways; South  Carolina,  foreign  insurance  companies;  South  Dakota, 
foreign  insurance  companies  and  all  domestic  companies  are  taxable  on 
the  "corporate  excess"  as  property;  Tennessee,4  foreign  insurance  and 
all  domestic  companies  are  taxable  on  their  "corporate  excess"  as 
property;  Utah,  insurance  companies;  Washington,  insurance  com- 
panies, and  a  small  general  franchise  tax;  Wyoming,  insurance  compa- 
nies; Hawaii,  insurance  companies. 

1  Has  license  taxes  on  certain  corporations  as  part  of  general  system 
of  license  taxes. 

2  Has  a  small  annual  franchise  tax. 

3 Corporations  are  taxable  on  the  "corporate  excess"  as  part  of  the 
property. 

4  There  are  also  some  license  taxes  which  fall  on  certain  classes  of 
corporations. 


The  following  states  have  an  extensive  system  of 
corporation  taxes,  some  general  and  some  special, 
which  are  distinct  both  in  form  and  administration 
from  the  taxes  applied  to  natural  persons: 

Connecticut,  Delaware,  District  of  Columbia,  Maine,  Maryland,5 
Massachusetts,  Michigan,  Minnesota,6  New  Jersey,  New  York,  North 
Carolina,5,7  Ohio,6  Pennsylvania,7  Texas,5,7  Vermont,  Virginia,5,7  West 
Virginia,  and  Wisconsin. 

(a)  The  general  corporation  tax. — The  following  states, 
all  but  five  of  which  are  in  the  list  of  states  named 

j  immediately  above  as  having  an  extensive  system  of 
corporation  taxes,  levy  a  "general  corporation  tax" 
(or  taxes),  in  the  sense  of  levying  a  tax  (or  series  of 

;  taxes)  on  all  corporations,  or  on  all  corporations  with 

|  a  few  definite  exceptions,  in  a  manner  or  form  essen- 
tially different  from  the  taxes  applied  to  natural  per- 

'■  sons.  All  these  states,  except  the  five  in  parentheses, 
also  levy  important  special  taxes  on  selected  classes  of 
corporations,  as  set  forth  below: 

(Alabama),  (since  1905,  California),  (Colorado),  Delaware,  District 
of  Columbia,  Maine,  Massachusetts,  New  Jersey,  New  York,  North 
Carolina;  since  1902,  Ohio;  (since  1903,  Oregon);  Pennsylvania, 
Texas,  Vermont:  since  1903,  Virginia:  (Washington),  West  Virginia. 

These  "general  corporation  taxes"  take  the  form  of: 

(1)  An  annual  state  franchise  tax  on  capital  stock  at 
comparatively  high  rates  and  in  lieu  of  all  other  taxes, 
except,  in  two  instances,  local  taxes  or  taxes  on  real 

estate: 

One  and  one-half  per  cent,  District  of  Columbia;8  at  rates  varying 
with  dividends.  New  York;  fi  mills,  Pennsylvania. 

(2)  An  annual  state  franchise  tax  on  the  "corporate 
excess"  in  lieu  of  all  taxes,  state  and  local,  except  on 
real  estate: 

At  the  average  rate  for  the  state,  Massachusetts. 

(3)  An  annual  franchise  tax  at  comparatively  low 
rates  based  on  authorized  capital  and  not  carrying 
exemption  from  other  taxes  (often  combined  with 
other  taxes  on  selected  classes  of  corporations) : 

Alabama;9  (since  1905,  California);  Colorado,  Delaware,  Maine; 
domestic  corporations,  New  Jersey;  North  Carolina,  Ohio,'  Oregon, 
Texas,  Vermont,  Virginia,  West  Virginia,  and  Washington. 

(4)  Foreign  corporations  generally  are  taxed  upon 
their  gross  earnings  in  the  state: 

In  New  Jersey. 

The  taxes,  so  called,  imposed  in  connection  with  the 
issuance  of  charters  to  corporations,  the  issuance  of 
authority  to  increase  the  capitalization,  the  admission 
of  foreign  corporations  to  the  state,  etc.,  are  fees. 

6  Has  a  few  licenses  on  corporations. 

•Corporations  taxable  on  the  "corporate  excess"  as  part  of  their 
property. 

7  In  addition  to  the  general  property  tax. 

8  In  lieu  of  all  other  taxes. 

9  Paid-up  capital. 


636 


WEALTH,  DEBT,  AND  TAXATION. 


(b)  S fecial  corporation  taxes. 
(1)   Insurance  companies: 

Insurance  companies  are  more  often  subjected  to 
special  corporation  taxes  than  any  other  class  of  cor- 
porations. Special  state  taxes  on  one  or  more  classes 
of  insurance  companies  are  found  in  every  state 
except  California  (which,  however,  adopted  such  a  tax 
in  1903),  Indian  Territory,  and  Nevada. 

Fire  insurance  companies: 

(a)  Taxed  on  gross  premiums  received,  no  deduc- 
tions specified: 

In  Alabama,  1  per  cent;1  in  Arizona,  2  per  cent;  in  Colorado,  2  per 
cent;  in  Connecticut,  foreign,  outside  the  United  States,  2  per  cent;  in 
Delaware,  1J  per  cent,  also  three-fourths  of  1  per  cent;  in  District  of 
Columbia,  1J  per  cent;  in  Florida,  1  per  cent;  in  Illinois,  2  per  cent;  in 
Iowa,  companies  organized  outside  the  United  States  3$  per  cent,  other 
foreign  2 \  per  cent,  domestic  1  per  cent;  in  Kansas,  companies  organ- 
ized outside  the  United  States  4  per  cent,  other  foreign  2  per  cent;  in 
Louisiana,  graduated  rates;  in  Maryland,  1$  percent;  in  Massachusetts, 
foreign,  2  per  cent;  in  Minnesota,  2  per  cent;  in  Missouri,  foreign,  2  per 
cent;  in  New  Jersey,  foreign,  2  per  cent,  domestic  1  per  cent;  in  New 
York,  companies  organized  outside  the  United  States  \  per  cent,  domes- 
tic 1  per  cent;  in  North  Carolina,  2\  per  cent;  in  North  Dakota,  2\  per 
cent;  in  Ohio,  2$  per  cent;2  in  South  Carolina,  foreign,  J  per  cent;  in 
South  Dakota,  foreign,  2$  per  cent;  in  Tennessee,  foreign  2J  per  cent, 
domestic  1J  per  cent;  in  Texas,  one-half  of  1  per  cent;  in  Utah,  1$  per 
cent;1  in  Wyoming,  2\  per  cent;  in  Hawaii,  1  per  cent. 

(6)  Taxed  on  gross  premiums  less  losses  paid  in 
state  and  return  premiums: 

In  Arkansas,  2$  per  cent,'3  in  California  (since  1903),  2  per  cent;  in 
Idaho,  2  per  cent;  in  Indiana,  3  per  cent;4  in  Oregon,  2  per  cent;  in 
Washington,  2  per  cent.4 

(c)  Taxed  on  gross  premiums,  less  return  premiums 
and  reinsurance  premiums : 

In  Georgia,  1  per  cent;  in  Kentucky,  2  per  cent ;  i  Maine,  foreign,  1 J 
per  cent;  in  Michigan,  foreign,  3  per  cent;  in  New  Hampshire,  foreign,  2 
per  cent;  in  Ohio,  2J  per  cent;  in  Pennsylvania,  foreign  2  per  cent, 
domestic  eight-tenths  of  1  per  cent;  in  Rhode  Island,  2  per  cent;  in 
Vermont,  2  per  cent;  in  Virginia,  1  per  cent;  in  Wisconsin,  2  per  cent. 

(d)  Taxed  on  net  receipts  or  on  premiums  less  losses 
and  expenses  at  the  same  rate  as  personal  property : 

In  Montana,  Nebraska,  New  Mexico,  and  Oklahoma. 

(e)  Taxed  on  each  dolb.r  of  risks  written: 
In  West  Virginia,  one-fourth  of  1  mill. 

(/)  A  flat  fee  for  a  general  license : 
In  Delaware,  $100;  in  Mississippi,  $1,000.5 

(g)  Taxed  on  net  assets: 

Mutual  fire,  in  Connecticut,  three-fourths  of  1  per  cent. 

Life  insurance  companies: 

(a)  Taxed  on  gross  premiums  received,  no  deduc- 
tions specified: 

In  Alabama,  1  per  cent,-6  in  Arizona,  2  per  cent;  in  Colorado,  2  per 
cent;  in   Delaware,   foreign,    1J    per  cent,   domestic   thirty-one   one- 


1  Less  property  taxes  paid . 

2  Made  up  in  part  by  computing  tax  on  premiums  as  personal  property. 

3  Less  losses  and  commissions. 

4  Less  losses  only. 

6  Domestic  companies  may  deduct  property  tax. 
6 Less  property  taxes. 


hundredths  of  1  per  cent,  also  three-fourths  of  1  per  cent  on  surplus;  in 
Florida,  2  per  cent;  in  Georgia,  1  per  cent;  in  Iowa,  2\  per  cent;  in 
Kansas,  companies  organized  outside  the  United  States  4  per  cent, 
United  States  companies  2  per  cent;  in  Kentucky,  2  per  cent;  in 
Louisiana,  graduated  license  tax;  in  Maryland,  1 J  percent;  in  Michigan, 
2  per  cent;  in  Minnesota,  2  per  cent;  in  Mississippi,  2  per  cent  on  first 
year  and  one-tenth  of  1  per  cent  on  renewal  premiums;  in  Missouri, 
foreign,  2  per  cent;  in  New  Hampshire,  1  per  cent;  in  New  York,  1  per 
cent,  companies  organized  outside  the  United  States  exempt;  in  North 
Carolina,  2\  per  cent;  in  North  Dakota,  2\  per  cent;  in  Pennsylvania,  2 
per  cent;  in  Rhode  Island,  2  per  cent;  in  South  Carolina,  foreign,  one- 
half  of  1  per  cent;  in  South  Dakota,  2\  per  cent;  in  Tennessee,  foreign, 
2\  per  cent;  in  Texas,  2  percent;  in  Utah,  1 J  per  cent :  in  Virginia,  1  per 
cent;  in  Wyoming,  2\  per  cent. 

(b)  Taxed  on  gross  premiums  less  losses  paid  in  state 
and  return  premiums: 

In  Arkansas,  2\  per  cent:4  in  Idaho,  2~per  cent;  in  Indiana,  3  per 
cent;3  in  Oregon,  2  per  cent;  in  Washington,  2  per  cent.3 

(c)  Taxed  on  gross  premiums  less  return  premiums: 

In  Maine,  \\  per  cent;  in  Ohio,  foreign,  2\  per  cent;  in  Vermont,  2 
per  cent. 

(d)  Taxed  on  net  premium  receipts: 
In  District  of  Columbia,  1J  per  cent. 

(e)  Taxed  on  net  receipts  or  on  premiums  less  losses 
and  expenses  at  the  same  rate  as  personal  property : 

In  Montana,  Nebraska,  and  New  Mexico. 

(/)  Taxed  on  net  value  of  policies  and  insurance  in 
force : 

In  Massachusetts,  one-fourth  of  1  per  cent  on  net  value  and  2$  mills 
per  $1,000  of  insurance  in  force;  West  Virginia,  insurance  written,  1$ 
mills. 

(g)  Flat  fee  or  license  tax,  no  percentage  tax: 
In  Wisconsin,  $300. 

Inlieu  of  other  taxes. — The  special  taxes  on  insurance 
companies  are  in  lieu  of  all  other  taxes: 

In  Alabama,7  Arizona,  Arkansas,  District  of  Columbia,8  Idaho,8 
Illinois,8  Iowa,  Michigan,  Montana,8  Nebraska,8  North  Carolina,  North 
Dakota,  Ohio,7  Pennsylvania,  South  Dakota,  and  Tennessee. 

In  the  following  states  the  so-called  retaliatory  law 
imposes  taxes  on  foreign  insurance  companies  in  addi- 
tion to  or  taking  the  place  of  the  above  taxes.  The 
following  citation  from  the  California  Code,  which  is 
similar  in  its  provisions  to  the  laws  of  other  states, 
shows  the  nature  of  these  taxes : 

When,  by  the  laws  of  any  other  state  or  country,  any  taxes,  fines, 
penalties,  licenses,  fees,  deposits  of  money  *  *  *  are  imposed  on 
insurance  companies  of  this  state  doing  business  in  such  other  state  or 
country,  or  upon  their  agents  therein,  in  excess  of  such  taxes,  fines, 
penalties,  licenses,  fees,  *  *  *  imposed  upon  such  insurance  com- 
panies of  such  states  or  countries  *  *  *  the  same  obligation 
*  *  *  must  be  imposed  upon  insurance  companies  of  such  other 
state  or  country  doing  business  in  this  state. 

Such  taxes  are  imposed  on  insurance  companies: 

In  Alabama,  California,  Colorado,  Connecticut,  Delaware,  Georgia, 
Illinois,  Indiana,  Iowa,  Kansas,  Kentucky,  Louisiana,  Maine,  Maryland, 


7  Companies  paying  property  tax  may  deduct  such  tax. 

8  Except  on  real  estate. 


TAXATION  AND  REVENUE  SYSTEMS. 


637 


Massachusetts,  Michigan,  Minnesota,  Missouri,  Montana,  Nebraska, 
New  Hampshire,  New  Jersey,  New  Mexico,  New  York,  North  Dakota, 
Ohio,  Oklahoma,  Pennsylvania.  Khode  Island,  South  Dakota,  Tennes- 
see, Texas,  Vermont,  West  Virginia,  Wisconsin,  and  Wyoming. 

Retaliatory  clauses  govern  taxes  entirely:' 

Fire— (Until  1903,  California).  Life— (Until  1903,  California);  in 
Conned  icut,  Illinois,  and  New  Jersey. 

For  license  taxes  imposed  on  insurance  companies, 
see  V.  Business  taxes  and  licenses,  next  section. 

(2)  Banks: 

Banks  are  for  the  most  part  taxed  under  the  general 
property  tax,  by  special  licenses,  or  under  the  gen- 
eral corporation  tax,  if  one  exists,  and  the  special 
provisions,  so  far  as  found,  applying  to  banks,  have 
been  summarized  under  those  headings. 

The  only  states  which  levy  special  corporation  taxes 
on  banks  arc: 

1  Vlaware,  specific  taxes  on  certain  banks  by  name,  and  one-fourth  of 
1  per  cent  on  shares;  District  of  Columbia,  6  per  cent  on  gross  earnings; 
Maine,  varying  rates  on  different  classes  of  banks;  Pennsylvania,  4  mills 
on  the  dollar  of  the  value  of  the  shares  (with  other  options). 

National  banks  are  taxed  by  the  states  under  powers 
derived  from  act  of  Congress  (U.  S.  Rev.  Stat.,  §§3701, 
5219): 

All  stocks,  bonds,  treasury  notes,  and  other  obligations  of  the  United 
States,  shall  be  exempt  from  taxation  by  or  under  state  or  municipal  or 
local  authority. 

.Nothing  herein  shall  prevent  all  the  shares  in  any  association  from 
being  included  in  the  valuat  ion  of  the  personal  property  of  the  owner  or 
holder  of  such  shares,  in  assessing  taxes  imposed  by  the  authority  of  the 
state  in  which  the  association"  is  located;  but  the  legislature  of  each 
state  may  determine  and  direct  the  manner  and  place  of  taxing  all  the 
shares  of  national  banking  associations  located  within  the  state,  sub- 
ject only  to  twoircstrictions,  that  the  taxation  shall  not  be  at  a  greater 
rate  than  is  assessed  upon  other  moneyed  capital  in  the  hands  of  individual 
citizens  of  such  state,  and  that  the  shares  of  any  national  banking  asso- 
ciation owned  by  nonresidents  of  any  state  shall  be  taxed  in  the  city  or 
town  where  the  bank  is  located,  and  not  elsewhere.  Nothing  herein 
shall  be  construed  to  exempt  the  real  property  of  associations  from  either 
state,  county,  or  municipal  taxes  to  the  same  extent,  according  to  its 
value,  as  other  real  property  is  taxed. 

The  slight  variations  which  prevail  in  the  applica- 
tion of  the  rule  of  taxation  thus  laid  down  are  not  suffi- 
cient to  cause  any  essential  differences  in  the  contents  of 
the  assessment  rolls  or  the  meaning  of  the  tax  returns 
in  the  various  states,  and  have  not,  therefore,  been 
summarized. 

State  banks  when  specially  taxed  are  usually  taxed 
in  substantially  the  same  manner  as  national  banks. 

Savings  banks  are  subject  to  special  taxation  in 
several  states,  but  there  is  no  substantial  uniformity. 
In  general,  the  object  of  the  special  rules  laid  down  is 
to  make  due  allowance  for  the  taxes  paid  by  such 
banks  on  their  investments,  as,  for  example,  on  tax- 
able mortgages,  or  to  encourage  savings  by  lessening 
to  a  degree  the  burden  on  the  savings  deposits. 


The  several  states  are: 

Connecticut,  Delaware,  Maine,  Maryland,  Massachusetts,  New  Hamp- 
shire, New  York,  Pennsylvania,  Rhode  Island,  and  Vermont. 

(3)  Railroads: 

Railroads  are  taxed  for  state  purposes  under  the 
general  property  tax,  with  modifications  as  to  methods 
of  application  and  administration  (as  set  forth  under 
the  headings  above)  in  all  states  except1  the  following: 

Connecticut,  Delaware,  Illinois  (the  only  exception  is,  however,  the 
Illinois  Central  Railroad  Company),  Maine,  Maryland,  Massachusetts, 
Michigan,  Minnesota,  New  York,2  Pennsylvania,  Vermont,3  and  Wis- 
consin. 

Railroads  are  taxed  for  state  purposes  on  their  gross 
(or  net)  earnings  (other  than  taxes  merely  to  defray 
the  expenses  of  railroad  commissions): 

In  Delaware,  10  per  cent  on  net  earnings  (applied  only  to  companies 
not  paying  specific  taxes) :  in  Maine,  at  rates  ranging  from  one-half  of 
1  per  cent  to  4  per  cent;  in  Maryland,  one-half  of  1  per  cent;  in  Michi- 
gan, at  rates  ranging  from  2$  per  cent  to  5  per  cent  (repealed  since  1902) ; 
in  Minnesota,  3  per  cent  (since  1902  raised  to  4  per  cent);  in  New  York, 
in  addition  to  the  property  tax  and  other  taxes,  five-tenths  of  1  per 
cent,  except  elevated  roads,  which  pay  1  per  cent  (and  also  3  per  cent 
on  dividends  in  excess  of  4  per  cent);  in  Pennsylvania,  in  addition  to 
other  taxes,  8  mills  on  the  dollar;  in  Texas,  in  addition  to  the  property 
tax,  1  per  cent  on  gross  earnings  from  passenger  traffic;  in  Vermont,  2$ 
per  cent,  or,  as  an  alternative,  seven-tenths  of  1  per  cent  on  the  property; 
in  Virginia,  covered  by  income  tax  at  1  per  cent  on  net  earnings  in 
addition  to  property  tax;  in  Wisconsin,  at  varying  rates  up  to  4  per 
cent  (since  repealed). 

Railroads  pay  a  license  tax  analogous  to  the  general 
licenses  on  other  lines  of  business: 

In  Mississippi,  North  Carolina,  graduated  according  to  gross  earnings. 

Railroads  are  taxed  for  state  purposes  on  the  value 
of  their  capital  stock: 

In  Connecticut,  1  per  cent;4  in  Delaware,  one-half  of  1  per  cent,  but 
usually  commuted  by  legislative  contract;  in  Kentucky,  a  franchise  tax 
on  stock  in  addition  to  the  property  tax;  in  Massachusetts,  on  stock  less 
value  of  real  estate  locally  taxed;  in  New  York,  unless  taxed  on  divi- 
dends; in  Pennsylvania,  as  part  of  the  general  corporation  tax  (recent 
changes  in  Virginia  and  West  Virginia  omitted). 

(4)  Sleeping  car  and  similar  transportation  companies: 
(a)  Taxed   according   to   mileage   run  by   cars   in 

state : 

In  Alabama,  $1  to  $500; 5  in  Mississippi,  $200. 

(6)  Taxed  on  value  of  capital  stock  employed  in 
state : 

In  Arkansas,  Ohio,  South  Carolina,  and  Wisconsin. 

(c)  Taxed  on  gross  receipts  in  state : 

In  Delaware,  1J  per  cent;  in  Florida,  one-half  of  1  per  cent;  in  Geor- 
gia, 2J  per  cent  (repealed);  in  Maine,  4  per  cent;  in  Maryland,  2  per 

1  Real  estate  not  used  in  the  operation  of  the  roads  is  usually  taxable 
as  property,  whatever  the  system. 

2  Real  estate  taxable  as  property  for  state  purposes  and  so  defined  as 
to  practically  include  all  property ;  but  the  state  rate  is  very  low. 

3  But  the  general  property  tax  is  an  alternative  open  to  the  companies. 

4  And  funded  and  floating  indebtedness. 
'Changed  in  1901  to  $1,250  annually. 


638 


WEALTH,  DEBT,  AND  TAXATION. 


cent;  in  Michigan;1  in  Minnesota,  3  per  cent;  in  New  Jersey,  2  per 
cent;  in  New  York,  same  as  railroads;  in  Pennsylvania,  same  as  rail- 
roads; in  Texas,  2  J  per  cent;  in  Vermont,  5  per  cent. 

(d)  Taxed  a  flat  rate  for  each  car  or  company: 
In  North  Dakota,  $100;2  in  Tennessee,  $2,500. 

(e)  Taxed  on  net  income : 
In  Virginia. 

(5)  Telegraph  companies: 

(a)  Taxed  according  to  mileage : 

In  Alabama,  Connecticut,  Delaware,  Tennessee,  Vermont,3  Viiginia;4 
West  Virginia  (foreign),  Wisconsin. 

(b)  On  gross  earnings: 

In  Georgia,  2 J  per  cent;  in  Maine,  at  graduated  rates  up  to  4  per 
cent;  in  Maryland,  2  per  cent;  in  Michigan,  3  per  cent;  in  New  Jersey, 
2  per  cent;  in  New  York,  five-tenths  of  1  per  cent;  in  North  Carolina, 
2  per  cent;  in  New  Mexico;  in  Pennsylvania,  8  mills  per  81;  in  Rhode 
Island,  1  per  cent;  in  Vermont,  3  per  cent:5  in  Virginia.8 

(c)  Taxed  on  messages  sent : 
In  Texas,  one-half  cent  to  1  cent. 

(6)  Telephone  companies: 

(a)  Taxed  according  to  mileage: 

In  Alabama,  Connecticut;7  in  West  Virginia,  foreign. 

(b)  Taxed  on  gross  receipts: 

In  Delaware,  4  per  cent;  in  Georgia,  2\  per  cent;  in  Maine,  at  gradu- 
ated rates  up  to  4  per  cent;  in  Maryland,  2  per  cent;  in  Michigan,  3  per 
cent;  in  New  Jersey,  2  per  cent;  in  New  York,  five-tenths  of  1  per  cent; 
in  North  Carolina,  2  per  cent;  in  Pennsylvania,  8  mills  per  $1 ;  in  Rhode 
Island,  1  per  cent;  in  Vermont,  3  per  cent. 

(c)  Taxed  on  instruments: 

In  Tennessee,  at  rates  graduated  by  size  of  counties;  in  Texas  and 
Virginia. 

(7)  Express  companies: 
(a)  License  tax: 

In  Alabama,  84,000;  in  Florida,  Southern  Express  Company,  82,500; 
in  North  Dakota,  graduated  according  to  size  of  stations;  in  Tennessee, 
at  rates  varying  with  mileage;  in  Virginia,  by  mileage;  in  West  Vir- 
ginia, by  mileage,  foreign. 

(6)  On  gross  earnings: 

In  Connecticut,  5  per  cent;  in  Delaware,  5  per  cent;  in  Georgia,  2\ 
per  cent; 8  in  Maine,  2  per  cent; 9  in  Maryland,  2  per  cent;  in  Minnesota, 
6  per  cent;  in  New  Jersey,  2  per  cent;  in  New  Mexico,  2  per  cent;  in 
New  York,  five-tenths  of  1  per  cent;  in  North  Carolina,  2  per  cent;  in 
Ohio,  2  per  cent;10  in  Pennsylvania,  8  mills  per  $1;  in  Rhode  Island, 
1  per  cent;  in  Texas,  1$  per  cent;  in  Vermont,  4  per  cent. 

V.  Business  taxes  and  licenses^. 

The  states  of  Alabama,  Florida,  Georgia,  Kentucky, 
Louisiana,    Maryland,    Mississippi,    Missouri,    North 

1  Regarded  as  unconstitutional. 

2  Reported  to  be  a  dead  letter,  but  still  in  the  statutes. 

3  Optional  with  gross  earnings  tax. 

4  And  gross  earnings  tax. 

6  Optional  with  mileage  tax. 

6  And  mileage  tax. 

7  And  on  each  receiver. 

8  Unless  property  taxes  amount  to  2}  per  cent  of  gross  earnings. 

9  Less  taxes  levied  on  real  estate  owned  and  used  by  express  com- 
panies. 

10  Less  what  is  paid  for  transportation  of  freight. 


Carolina,  Pennsylvania,  Tennessee,  Texas,  Virginia, 
and  West  Virginia — in  short,  all  the  Southern  states 
except  South  Carolina  (which  gives  the  revenues  from 
a  similar  system  to  the  counties) — have  an  extensive 
system  of  state  license  taxes  which  amounts  to  a  com- 
plete or  nearly  complete  excise  system,  supplementing 
the  state  general  property  tax  and  in  part  taking  its 
place.  In  all  the  other  states  these  taxes  appear  only 
sporadically  as  state  taxes,  being  left  almost  entirely 
to  the  municipalities. 

In  general,  these  taxes  are  levied  under  what  the 
courts  have  called  the  police  or  regulative  power  rather 
than  under  the  taxing  power  of  the  government.  But 
in  many  instances,  especially  in  the  above  mentioned 
states,  they  have  developed  to  such  a  degree  that  it  is 
impossible  to  distinguish  them  economically  from  true 
taxes. 

The  character  of  these  taxes  is  such  as  practically  to 
defy  classification.  The  motives,  too,  under  which  they 
are  levied  are  mixed.  Many  of  them,  such  as  the  tax 
on  liquor  dealers,  games,  and  amusements,  are  partly 
regulative  and  partly  sumptuary;  that  is,  they  are 
levied  in  the  first  instance  to  restrict  and  control  the 
taxed  industry,  but  the  rates  are  often  determined  by 
the  fact  that  the  enjoyment  or  use  of  these  things  is 
evidence  of  an  ability  to  pay  taxes.  Another  group, 
such  as  the  taxes  on  itinerant  vendors,  peddlers, 
auctioneers,  etc.,  seems  ,to  be  dictated  by  the  idea  that 
these  compete,  in  an  irregular  way,  with  established 
industries  which  pay  the  regular  taxes.  Still  another 
group,  like  the  taxes  on  lawyers,  abstract  companies, 
commission  merchants,  agents,  brokers,  etc.,  seems  to 
be  designed  to  reach  occupations  which,  while  afford- 
ing good  incomes,  do  not  require  the  use  of  much,  if 
any,  taxable  property. 

As  one  of  these  motives  which  gives  character  to  the 
taxes  is  rarely  found  in  any  case  unmixed  with  the 
others,  classification  along  these  lines  would  be  more 
or  less  arbitrary  and  largely  a  matter  of  opinion.  It 
is  probably  on  this  account  that  in  the  more  advanced 
of  the  general  state  license  laws  the  attempt  to  classify 
the  taxes  has  been  abandoned  and  a  simple  alphabet- 
ical list  given.  Such  an  alphabetical  list  is  given  below 
and  will  probably  serve  all  the  purposes  which  can  be 
expected  of  this  compilation. 

Inasmuch  as  these  taxes,  where  extensively  used,  are 
carefully  fitted  into  and  adjusted  to  the  other  existing 
taxes  in  the  general  system  of  each  state,  there  are  a 
number  of  apparent  gaps  which  can  not  be  accounted 
for  without  reference  to  the  other  taxes.  For  example, 
Louisiana  places  a  license  tax  on  banks  and  Tennessee 
does  not,  but  Tennessee  taxes  banks  in  other  ways 
which  Louisiana  does  not. 

These  taxes  are  occasionally  in  lieu  of  all  other  taxes. 
Instances  in  which  this  is  the  case  can  be  found  in  the 
special  description  for  each  state. 

In  many  instances  the  rates  are  cited  in  a  very  abbre- 
viated form,  as  long  schedules  could  not  be  inserted 


TAXATION  AND  REVENUE  SYSTEMS. 


639 


here.     The  full  rates  are  given  in  the  special  descrip- 
tions of  each  state.     When  not  otherwise  stated  or 

obvious  from  the  nature  of  the  tax,  the  rates  are  the 

annual  charges.     The  briefest  possible  catchwords  have 

been  sought  and  all  such  phrases  as  "the  business  of" 

or  "dealing  in,'-  etc.,  have  been  cut  out  whenever 

possible. 

Abstract  companies— $5  to  $20,  Alabama:  $5  to  $25,  Georgia;  $10  to 
$50,  Tennessee. 

Advertising  companies — $10  to  $100,  Tennessee. 

Agencies,  miscellaneous— In  13  classes,  $5  to  $120,  Louisiana;  renting 
houses.  $10  to  $30,  Virginia. 

Aleohol— $50,  Hawaii. 

Architects — $10,  Georgia. 

Auction  sales— 5  per  cent  gross,  Florida;  2J  per  cent  gross,  Maii.e; 
wines,  etc.,  2i  percent,  goods  imported  H  percent,  Michigan;  l\  per 
cent,  Missouri;  of  certain  articles,  indeterminate,  Ohio;  3  per  cent, 
Pennsylvania;  one-fourth  of  1  per  cent,  Virginia;  2  per  cent,  West 
Virginia. 

Auctioneers— $5  to  $50,  Alabama;  $10,  Delaware;  $25,  Georgia:  $20, 
Idaho:  $2,  Maine;  various  rates,  Maryland;  $5  to  $30,  Mississippi; 
$75,  six  months,  Missouri;  various  rates,  Ohio;  $250  to  $3,000,  Penn- 
sylvania: $5  to  $20  transient,  per  week  $20,  Tennessee;  $10,  Texas: 
$50  to  $130,  and  various  by  sales,  Virginia:  $5  and  $2  per  thou- 
sand of  population,  West  Virginia:  $15  to  $600,  Hawaii.  Land  in 
towns:  $10  and  one-half  of  1  per  cent  of  gross  sales,  Florida;  $100  and 
one-fourth  of  1  per  cent,  Virginia. 

Bunkers,  private— $100,  Delaware;  $10  to  $100,  Florida;  $30  to  $100 
per  quarter,  Idaho;  in  4  classes,  $75  to  $500,  Louisiana;  1  per  cent  of 
receipts,  Pennsylvania;  $50,  Texas;  $50  to  $250,  Virginia;  $750, 
Hawaii. 

Banks— $10  to  $100,  Florida;  in  14  classes,  $50  to  $4,500,  Louisiana; 
$250,  Alaska.  Foreign:  2\  per  cent  gross  profits,  minimum  $1,000, 
Louisiana. 

Barber  shops — $2.50  per  chair,  Mississippi. 

Baseball  parks,  etc.— $25  to  $50,  Alabama;  $25  to  $50,  Georgia;  $10  to 
$25,  Tennessee;  $25,  Texas.     Public  parks— $100,  Tennessee. 

Bicycle  renting  and  dealers— $5  to  $15,  Alabama;  $10,  Georgia;  $10, 
Tennessee:  $5  to  $10,  Mississippi. 

Billiard  tables— $25  to  $50,  Alabama:  $25,  Florida;  $25,  Georgia;  $15 
per  quarter,  Idaho;  $10,  Louisiana;  one  $50,  each  additional  $25, 
Maryland;  $25  to  $75,  Mississippi:  first  $20,  each  additional  $10, 
Missouri;  $20,  Texas;  $50  for  one  and  $25  each  additional,  Virginia; 
$75  for  first  and  $25  each  additional,  West  Virginia;  $15,  Alaska;  $25, 
Hawaii.  Not  connected  with  saloon:  $10,  Florida.  Dealers  in,  in 
each  county:  $100,  Georgia. 

Billposters — $5  to  $25,  Alabama ;  $10  to  $50,  Tennessee ;  $5,  Mississippi. 

Bond  makers — $50,  Alabama. 

Book  agents,  except  those  selling  religious  books,  and  soldiers  of  the 
Civil  War,  or  indigent  and  disabled  persons  selling  in  county  of  resi- 
dence— $10  per  county,  Alabama;  and  pictures  $10,  Florida;  $10, 
Virginia. 

Bottlers— $25,  Alabama ;  $125  to  $.500,  Pennsylvania ;  $5  to  $25,  mineral 
water  $20,  Mississippi;  $10  to  $75,  Tennessee;  $200,  Alaska. 

Bowling  alleys— $25,  Alabama:  $15,  Florida;  $25,  Georgia;  $5  per 
quarter,  Idaho;  $25  to  $50,  Kentucky ;  $10,  Louisiana;  $10,  Missouri; 
$100,  Texas:  $25  for  one  and  $10  each  additional,  Virginia;  $40  for 
first  and  $10  each  additional,  West  Virginia;  $25,  Hawaii. 

Brewers— $100,  Alabama;  $100  each  county,  Florida;  $300,  Georgia; 
$200,  Kentucky;  $20  to  $6,250,  Louisiana;  $60,  New  Mexico;  $1,000 
and  $2.50  to  $6,000,  Pennsylvania;  $250,  Tennessee ;  $5 semiannually, 
Virginia;  $50  to  $550,  West  Virginia;  $500,  Alaska;  $250,  Hawaii. 
Agents:  $25,  Kentucky;  $50  to  $250,  Tennessee. 

Brokers— $5  to  $50,  Alabama;  $100,  Delaware;  $10  to  $100,  Florida; 
$100,  Indiana;  $25  to  $100,  Maryland;  $25  to  $75,  Mississippi;  $50 
to  $1,000,  Missouri;  1  per  cent  of  receipts,  Pennsylvania;  $25  to  $50, 


Tennessee;  $50,  Texas;  $100  to  $1.50,  Virginia;  $50  to  $100,  West 
Virginia;  $100,  Alaska.  Coupon:  $.500  to  $1,000,  Virginia.  Mer- 
chandise: $2.50  to  $25,  Alabama;  factors  and  commission  men,  in  17 
classes,  $25  to  $1,750,  Louisiana;  $7.50  to  $30,  Tennessee;  $100, 
Virginia. 

Building  and  loan  association  or  agente — $10,  Florida;  $25  to  $250, 
Mississippi;  $25,  Wyoming. 

Butchers,  meat  markets,  retail— $10  to  $15,  Mississippi;  $5  to  $15, 
Tennessee:  $15,  Alaska;  $10  to  $100,  Hawaii. 

Checkroom— $10  to  $20,  Tennessee. 

Cigar  and  tobacco  dealers— $5  to  $10,  Alabama;  $5,  Florida;  $5  to  $10, 
Tennessee;  $5,  Virginia;  $15,  Alaska;  $10,  Hawaii.  Manufacturers: 
1  per  cent  of  product  up  to  $1,000,  one-half  of  1  per  cent  of  excess  over 
$1,000,  Kentucky;  $20  to  $6,2.50,  Louisiana;  $25,  Alaska. 

Cigarette  dealers,  retail— $5  to  $35,  Alabama;  $10,  Georgia;  $10, 
Kentucky;  $10,  Maryland;  $10,  Mississippi;  $5,  Missouri;  $15,  Ohio; 
$10,  Texas;  $10,  West  Virginia.  Manufacturers:  2$  percent  prod- 
uct, Kentucky;  $20  to  $6,250,  Louisiana.  Dealers,  wholesale:  $100, 
Kentucky:  $30,  Ohio;  $50,  West  Virginia.  Foreign  dealers:  5  per 
cent,  Kentucky. 

Circuses— $100  to  $1.50  per  day,  Alabama;  $100,  Delaware;  $200, 
Florida;  $100  to  $500  per  day,  Georgia;  $10  each  exhibition,  Idaho; 
various  rates  up  to  $50,  Kentucky;  $30  to  $500,  Louisiana;  $50  to 
$150,  Mississippi;  $1,000,  Pennsylvania;  $25  to  $200  per  day,  Ten- 
nessee; $100  to  $2.50  per  exhibition,  Texas;  $20  to  $100  per  day  and 
5  per  cent  of  receipts,  Virginia;  $50  to  $75  each  exhibition,  West  Vir- 
ginia; $100,  Wisconsin. 

Coal  agents  or  dealers— $5  to  $20,  Alabama;  $5  to  $30,  Tennessee; 
$12.50  to  $30,  Mississippi. 

Cockpits— $50,  Texas. 

Coke  agents  or  dealers— $5  to  $20,  Alabama;  $5  to  $30,  Tennessee. 

Cold  storage— $10,  Alabama;  $10  to  $150,  Tennessee. 

Collecting  agencies— $10  to  $25,  Alabama;  $50  each  county,  Georgia; 
$30  to  $400,  Louisiana;  $10  to  $25,  Tennessee. 

Commercial  or  mercantile  agencies — $300,  Alabama;  $50  in  each 
county,  Georgia;  $11  to  $125,  Tennessee;  $500,  Texas. 

Commission  merchants — $5  to  $50,  Alabama;  $25,  Delaware;  $5, 
North  Dakota;  $50,  Mississippi;  $25  and  $50,  Texas;  $50,  and  ad 
valorem  on  commissions,  Virginia;  $5,  Washington. 

Common  criers — $5,  Virginia. 

Construction  companies — $25,  Alabama;  $15  to  $50,  Tennessee. 

Conveyancers — $10,  Delaware. 

Corporations — Domestic:  If  capital  stock  is  over  $25,000,  2  cents  per 
$1,000,  Colorado.  Foreign:  4  cents  per  $1,000  of  capital  stock,  but 
if  par  value  per  share  is  less  than  $1,  2i  cents  per  $1,000  shares,  Colo- 
rado; $10  to  $50,  Vermont.  Not  subject  to  specific  licenses:  $10  to 
$500,  Alabama. 

Cotton  buyers  or  brokers— $10,  Alabama;  $25,  Mississippi ;  $5  to  $25, 
Tennessee;  $10  to  $35,  Texas. 

Cotton  presses  and  ginneries— $20  to  $6,250,  Louisiana;  round  bale  $15 
to  $30,  compress  $.50  to  $150,  gins  $25,  Mississippi;  $25  to  $150, 
Tennessee.     Weighers:  $10  to  $35,  Mississippi. 

Cottonseed  buyers — $10,  Mississippi. 

Cottonseed  oil— $20  to  $6,250,  Louisiana;  $175  to  $250,  Mississippi; 
$15  to  $350,  Tennessee;  $25,  Texas. 

Dances  or  halls— $5,  Alabama;  $10,  Mississippi. 

Debenture  companies — $100,  Mississippi. 

Dentists— $25,  Connecticut;  $10,  Delaware;  $10,  Florida;  $5  to  $120, 
Louisiana;  $10,  Mississippi;  $10  to  $25,  Virginia.  Itinerant:  $5, 
Texas. 

Detective  agencies— $50,  Alabama;  $50,  Georgia;  $50,  Maine. 

Dispensary,  municipal— $250  and  $250  per  1,000  population  (1903), 
Alabama. 

Distillers— $25,  Alabama;  $100  each  co-inty,  Florida;  $75,  Kentucky; 
$20  to  $6,250,  Louisiana;  $.50,  Mississippi;  $200,  New  Mexico;  $100 
to  $2,000,  Pennsylvania;  $10  to  $250,  brandy  $5  to  $10,  Tennessee; 
$30  and  up,  brandy  separate  rates,  Virginia;  $50  to  $550,  West  Vir- 
ginia; $250,  Hawaii. 


640 


WEALTH,  DEBT,  AND  TAXATION. 


Dog  fights— $.500,  Texas. 

Dog  shows  and  pony  shows  (trained  animals) — $25  to  $35  per  day,  Ala- 
bama; $10  to  $30  per  day,  Georgia;  $25  per  day,  Mississippi;  $15  to 
$30  per  day,  Tennessee. 

Dogs — Males:  $1.15,  Maine;  $1,  Maryland.  Females:  $3.15,  Maine: 
$2,  Maryland.  Kennels:  $10  to  $20,  Maine;  one  dog  $1,  each  addi- 
tional 50  cents,  Virginia. 

Druggists— $10,  West  Virginia;  $50,  Alaska.  Selling  liquor:  $75, 
Kentucky. 

Drummers — $75  to  $125,  Idaho;  $50,  Michigan;  $150,  Ohio;  $250  per 
island,  Hawaii. 

Dummy  railroads — $10  to  $10,  Alabama. 

Editors — $5  to  $120,  Louisiana. 

Electric  light  and  power— $15  to  $100,  Alabama;  $10  to  $100,  Florida; 
20  classes,  $20  to  $6,250,  Louisiana;  $25  to  $75,  Mississippi;  $10 
to  $750,  Tennessee;  $300,  Alaska.  Foreign:  ,$5  per  $1,000  gross 
receipts,  Louisiana. 

Elevator  companies — $10  to  $20,  Alabama. 

Emigrant  agent — Each  county,  $500,  Georgia. 

Express  companies — $10  to  $200  per  city,  Florida;  10  classes,  $30  to 
$400,  Louisiana;  $500  and  $1  per  mile  of  track,  Mississippi;  $500  to 
$2,000,  Tennessee.  Transfer  companies:  $50,  Alaska.  Foreign:  $10 
per  $1,000  gross  receipts,  Louisiana. 

Feather  renovators — $10  in  each  county,  Alabama;  $50,  Mississippi: 
$250,  Tennessee. 

Fees,  persons  buying  fees  of  officers — $2.50  to  $100,  Tennessee. 

Ferries — $5  to  $75,  Alabama ;  indeterminate,  Idaho;  $3  to  $50,  Indiana; 
other  than  steam  $5  to  $10,  steam  $75  to  $150,  Mississippi;  $2  to 
$5,000,  Missouri;  $5  to  $50,  Tennessee;  steam,  $100,  Alaska. 

Fertilizer  manufacturers — $25  to  $100,  Mississippi;  $50,  New  Hamp- 
shire; each  brand,  $20,  Ohio;  $15  to  $30,  Pennsylvania;  to  sell,  $100, 
Vermont;  $20,  Virginia. 

Fishermen — $2.50  to  $50  monthly,  Washington. 

Fortune  tellers — $5,  Alabama;  each  county,  $50,  Mississippi;  $10, 
Tennessee;  each  county,  $10,  Texas. 

Fraternal  and  benevolent  societies — Soliciting  membership:  In  four 
classes,  $150  to  $375,  Louisiana. 

Fruit  stands — $2.50  and  $5,  Alabama;  $2.50  and  $5,  Tennessee. 

Futures,  dealers  in— $200,  Alabama;  $1,000,  Georgia;  $200  to  $400, 
Tennessee. 

Gambling — First  month  $100,  subsequent  months  $75,  Nevada. 

Game  tables  or  games — $25  to  $50,  Alabama;  cane  racks,  $50,  Missis- 
sippi; $10  to  $25,  Tennessee;  $25,  Texas;  bagatelle,  $10  for  one  and  $5 
each  additional,  Virginia;  bagatelle,  $25  for  first  and  $10  for  others, 
West  Virginia. 

Gas  works  or  companies — $15  to  $100,  Alabama:  $10  to  $100,  Florida; 
20  classes,  $20  to  $6,250,  Louisiana;  $30  to  $100,  Mississippi;  $50  to 
$700,  Tennessee;  $300,  Alaska. 

Guides — Resident  $1,  nonresident  $20,  Maine. 

Gypsies  and  traders — $25  each  county,  Alabama;  $25  each  county, 
Georgia;  $50,  Maryland;  $50,  Mississippi. 

Hack  lines — $25,  Mississippi. 

Hacks  and  omnibuses — $2.50  to  $5,  Mississippi. 

Halls,  public— $10,  Alaska;  $10  to  $25,  Alabama. 

Horse  dealers — 40  cents  per  animal  sold,  Alabama;  for  whole  state, 
$50,  Mississippi. 

Hotels  and  boarding  houses — $10  to  $150,  Florida;  $10,  Kentucky;  in 
10  classes,  $40  to  $600,  Louisiana;  $1,  Maine;  $10  to  $75,  Mississippi; 
$20  to  $60,  New  Mexico;  50  cents  per  room,  Tennessee;  $5  and  per- 
centage on  rental,  Virginia;  3  per  cent  rental,  West  Virginia;  $2  to 
$50,  Hawaii;  hotels  $50,  boarding  houses  $15,  Alaska.  With  liquor 
licenses:  $60  to  $235,  Kentucky. 

Hunters — Deer:  $5,  Maine.  Birds:  $10,  South  Dakota.  Animals: 
$25,  for  residents  $1,  South  Dakota;  for  residents  $1,  for  non- 
residents $10,  Washington. 

Ice  factories  or  dealers — $15  to  $50,  Alabama;  $25  to  $100,  Mississippi; 
$5  to  $100,  Tennessee;  dealers,  $10  to  $.50,  Texas. 

Illuminating  oils — (J  cent  per  gallon,  Alabama,  1903). 


Insane  asylums — $50  first  year,  $25  per  year  thereafter,  Connecticut. 

Insurance  brokers  or  agents — $10,  Connecticut;  foreign,  $25,  Delaware; 
$5  to  $25,  Florida;  in  each  county  $10,  traveling  $50,  Georgia;  $3, 
Idaho;  $100  for  state,  $25  for  one  county,  Maryland;  of  unauthorized 
companies,  $20, Massachusetts:  $10  to  $40, Mississippi;  $10,  Missouri; 
$25,  Nebraska ;  of  foreign  company,  $20,  New  Jersey;  $10,  New  Mex- 
ico; foreign  life,  $100,  Oregon;  $5,  Texas;  $100,  Virginia;  fire  $2, 
marine  $50,  Washington;  $25,  Alaska.     Solicitors:  $5,  Oregon. 

Insurance  companies — $200,  Florida;  $50,  Idaho;  life,  69  classes,  $150 
to  $5,250,  fire,  marine,  etc.,  30  classes,  $150  to  $4,500,  Louisiana: 
gucrantee  $100,  accident  $250,  lire  adjusters  $25,  fire  $1,000,  general 
$2.50  to  $1,000,  Mississippi;  fire,  life,  and  accident  $100,  casualty  and 
surety  $20,  Nevada;  $50,  New  Jersey;  fire  $.50,  others  $100,  Oregon; 
foreign  life  and  accident  assessment  plan,  $25,  Wyoming.  For  plate 
glass:  $50,  Florida.  Annual  statement:  $.5,  Oregon.  Doing  a  bank- 
ing business:  $50,  Alabama.  Not  capitalized:  $1  per  $1,000  on  gross 
premiums,  Colorado. 

Intelligence  offices — $25,  Virginia;  $10,  TcBQMN ■<■. 

Itinerant  traders  or  vendors — $50,  Alabama;  $100,  Connecticut;  drugs 
and  medicines,  $500,  others  per  county  $50,  Florida;  each  county, 
$25,  Georgia;  of  drugs  per  month,  $100,  Illinois;  $5  to  $20,  Indiana; 
of  drugs,  $100,  Iowa;  $100,  Kentucky;  $25,  Maine;  $25,  Massachu- 
setts; $25,  Michigan ;  each  county,  $35,  Mississippi :  $25,  New  Hamp- 
shire; $25,  New  Jersey;  $25,  Ohio;  $25,  Rhode  Island ;  $100,  Tennes- 
see; $10  to  $100  per  month,  Texas;  $25,  Vermont;  $50,  Wisconsin. 

Jewelers — $5  to  $125,  Louisiana;  $25,  Alaska. 

Jugglers — $25,  Delaware ;  $2.5,  Texas. 

Junk  dealers — (1903)  $150,  Alabama;  $15  to  $50,  Mississippi:  $50,  Vir- 
ginia.    Canvassers:  $2.5,  Virginia. 

Land  agents — $10,  Florida;  $5, Texas;  $10  to  $50,  and  one-eighth  of  10 
per  cent  on  sales,  Virginia. 

Land  stock  companies — $10  to  $25,  Tennessee. 

Laundries — $10,  Alabama;  steam,  $10,  Mississippi;  $7.50  to  $50,  Ten- 
nessee; steam,  $10,  Texas;  $50,  Hawaii. 

Lawyers— $10,  Delaware;  $10,  Florida:  $10,  Georgia;  $5  to  $120, 
Louisiana;  $10,  Mississippi;  $5,  Texas;  $15  to  $25,  Virginia. 

Legerdemain,  or  sleight  of  hand — $10,  Alabama. 

Lighting  companies — $10  to  $100,  Tennessee. 

Lightning  rod  agents — $50,  Alabama;  $100,  Arkansas;  per  county,  $10, 
Florida;  $50  each  county,  Georgia;  $100,  Indian  Territory;  double 
peddlers'  rates,  Kentucky;  $200,  Louisiana;  $100,  Mississippi:  $300, 
New  Hampshire;  $100,  Tennessee;  $100,  Texas;  $20,  Virginia;  $50, 
West  Virginia.     Dealers:  $30,  Texas. 

Liquor — Liquor  licenses,  local:  State  receives  one-fourth,  Massachu- 
setts, Rhode  Island.  Liquors  imported  in  original  package:  spiritu- 
ous, $300,  Michigan;  malt,  $100,  Michigan.  Liquor  dealers,  general: 
$500  each  county,  Florida:  each  place  of  business,  $200,  Georgia; 
$100  to  $500,  Idaho;  $300,  Indian  Territory;  $100,  Indiana;  1  to 
5  gallons  $400,  5  gallons  $200,  Mississippi;  ad  valorem  tax,  Mis- 
souri; $350,  Ohio.  Sale  and  manufacture  of  distilled  liquors  and 
wines:  10  cents  per  gallon,  Missouri.  Ava,  sold  at  auction:  Each 
taxation  district,  $100  to  $1,000,  Hawaii.  Liquor  dealers,  spirit- 
uous, vinous,  or  malt:  Retail — $200  to  $350,  Alabama;  $300  plus 
2  per  cent  plus  $1,  Arkansas;  $25,  Colorado;  $18  to  $150,  Mary- 
land; $900  to  $1,200,  Mississippi;  $100  to  $400,  New  Mexico;  $25  to 
$100,  Pennsylvania;  $1.50  to  $200,  Tennessee;  $300,  Texas;  $75  to 
$125,  Virginia;  $3.50,  West  Virginia:  $1,000,  Hawaii;  in  local  option 
districts  on  prescription — $200,  Texas;  in  theaters — $150,  West 
Virginia.  Liquor  dealers,  spirituous,  vinous,  or  malt,  at  retail  on 
steamboat,  water  craft,  or  sleeping,  dining,  or  buffet  car:  $350,  Ala- 
bama; $100,  Arkansas;  $200,  Georgia;  $200,  Tennessee.  Saloons, 
barrooms,  beer  gardens,  etc.:  in  8  classes,  $100  to  $1,500,  Louisiana; 
$75  to  $125  and  15  per  cent  of  rental,  Virginia.  Malt  only,  small 
towns:  $40,  Virginia.  Sample  liquor  merchants:  $3.50,  but  in  small 
towns  $60,  Virginia.  Liquor  dealers,  malt  only:  Retail — one-fourth 
rates  for  all,  Alabama;  $200  in  each  county,  Georgia;  $50,  Ken- 
tucky; $50,  Texas;  small  towns,  $30,  Virginia:  and  wines,  $200, 
Hawaii.     Apple  and  peach  brandy,  by  distiller:  $100,  West  Virginia. 


TAXATION  AND  REVENUE  SYSTEMS. 


641 


Liquor  dealers,  vinous  only:  Retail — one-tenth  rates  for  all,  Ala- 
bama. Liquor,  retail:  {Spirituous  and  vinous — $100,  Kentucky. 
Liquor  dealers,  spirituous,  vinous,  and  malt:  Wholesale — $350,  Ala- 
bama; $100,  New  Mexico;  $100  to  $1,000,  Pennsylvania;  $300, 
Texas;  $200,  Tennessee;  $350,  Virginia;  $350,  West  Virginia;  $500, 
Hawaii.  Liquor  dealers,  wholesale,  malt  only:  $50,  Arkansas; 
$25  to  $100,  Mississippi;  $150,  Virginia.  Wines,  ales,  and  mineral 
waters:  $200,  Kentucky.  Hopfen  weis,  cider  dealers,  etc.:  $500, 
Mississippi. 

Litigation— $2.50  to  $7.50,  Tennessee. 

Lively  stables— $5  to  $50,  Florida;  $10  to  $60,  Mississippi;  $10,  New 
Mexico;  $10  to  $40,  Tennessee:  30  cents  per  stall,  30  cents  per  hack, 
Texas;  $15  to  $25,  and  50  cents  per  stall,  Virginia;  $25  to  $50,  Hawaii. 
Wagon  yard:  $5,  Texas.  Hack  driver:  $10,  Virginia.  Baggage 
wagons:  $5,  Virginia. 

Lumber  yank — $10  per  100,000  feet  of  sales,  Mississippi. 

Manufacturers— $5  and  $1  on  first  $1,000  cost  raw  materials  and  10  cents 
per  $100  over  $1,000,  millers  exempt,  Delaware;  in  25  classes,  $15  to 
$8,000,  Louisiana:  ad  valorem,  Missouri;  as  merchants,  Alaska.  Of 
cigars:  25  cents  per  workman,  Florida. 

Matrimonial  agents — $100  in  each  county,  Georgia. 

Menageries — $25,  Alabama:  $30  to  $.500,  Louisiana. 

Merchants  and  mercantile  establishments — $1  to  $3,  Florida;  wholesale. 
16  classes,  $50  to  $3,500,  retail,  24  classes,  $5  to  $3,500,  Louisiana;  $12 
to  $150,  Maryland;  $2.50  to  $250,  Mississippi:  ad  valorem,  Missouri; 
$10  to  $150,  New  Mexico;  ad  valorem,  Pennsylvania:  $3  to  $300, 
Texas;  $5  to  $10  and  ad  valorem  on  purchases,  Virginia;  $10  to  $500, 
Alaska;  provisions  and  drugs  $50,  general  merchandise  $50  and  three- 
eighths  of  10  per  cent  on  excess  over  $20,000,  Hawaii.  Selling 
liquors — $100,  Kentucky. 

Merry-go-rounds,  flying  jennies,  hobby  horses — various  rates,  Alabama; 
$50,  Delaware:  $10  each  county,  Florida;  $25,  Georgia;  $10,  Missis- 
sippi: $15  to  $100,  Tennessee;  $15,  Texas;  $10  to  $20,  Virginia;  $25 
per  week,  West  Virginia. 

Milk  wagons  and  stands — $1,  Washington;  $2.50,  Hawaii. 

Milliners     SO.  Maryland. 

Mines — Quartz  mills,  per  stamp,  $3,  Alaska. 

Money  lenders,  loan  agents  -$100,  Alabama;  each  county,  $10,  Georgia; 
$100,  Mississippi.  Loan  companies,  etc.:  10  classes,  $75  to  $3,000, 
Louisiana:  $150,  Texas. 

Museums — $25,  Alabama. 

News  companies — $100,  Alabama;  $500,  Tennessee. 

Oculists — $5  to  $120,  Louisiana. 

Oils,  illuminating,  lubricating,  or  fuel — Wholesale:  One-half  of  1  per 
cent  gross  sales,  Alabama;  $5  per  $1,000  gross  sales,  Louisiana;  $25 
to  $75,  Mississippi ;  $25  to  $200,  Tennessee.  Depots:  $10,  Kentucky. 
Retailing:  $5,  Kentucky. 

Oleomargarine  dealers — $5,  Mississippi. 

( M eopathy — $25,  Connecticut . 

Oyster  catchers — $5  to  $20,  Delaware. 

Oyster  or  eating  houses — $50,  Maryland. 

Oyster  vessels — Under  5  tons  $2  and  each  additional  ton  50  cents, 
Connecticut. 

Packing  houses,  agents  of — In  each  county  $200,  Georgia;  canning  $10, 
Mississippi;  salmon, $100  to  $450,  Oregon;  $100  to  $1,000  per  season, 
Washington;  salmon  canning  4  cents  per  case,  salmon  salteries  10 
cents  per  barrel,  fish  oil  10  cents  per  barrel,  fertilizers  20  cents  per 
ton,  Alaska.  Houses  only:  One-half  of  1  per  cent  on  product,  Ken- 
tucky; $2  per  $1,000  of  proceeds,  Louisiana. 

Patent  churns  and  patent  fences,  peddlers  of — $25  each  county, 
Georgia. 

Patent  rights — $5  each  county,  Alabama;  and  agricultural  implements, 
$25  in  each  county,  Georgia;  $50,  Rhode  Island;  each  county  $250, 
Texas;  $25,  Virginia;  $10,  West  Virginia. 

Pawnbrokers — $75,  Alabama;  $100,  Florida;  $50,  Georgia;  $50  per 
quarter,  Idaho;  $.500,  Kentucky;  $375  to  $500,  Louisiana;  $100, 
Maryland;  $100,  Mississippi;  $250,  New  Mexico;  $10  to  $150, Ten- 
nessee; $1.50,  Texas;  $250,  Virginia;  $100,  West  Virginia;  $300, 
Alaska;  $150,  Hawaii. 
932—07 41 


Peddlers — General  license:  $25  semiannually,  Arkansas;  $300,  Florida; 
$50  in  each  county,  Georgia;  $25  for  six  months,  Indian  Terri- 
tory; $5  to  $20,  Indiana;  $2  to  $20,  Maine;  $.50,  Massachusetts; 
$50,  New  Hampshire;  $60,  Rhode  Island.  Hucksters:  $1  to  $5, 
Tennessee;  $25,  Alaska.  In  a  boat  or  boats  for  peddling,  trading, 
etc.:  $10  to  $30,  Florida;  $50  each  county,  Georgia;  $200,  Louisiana ; 
first  license  $1  per  day,  subsequent  50' cents  per  day,  Missouri;  each 
county  $10, Texas ;  $50  to  $200,  Mississippi.  On  foot :  $15,  Alabama; 
$25  to  $50,  Idaho;  $20,  Kentucky;  $10,  Louisiana;  $100,  Maryland; 
$15,  Michigan;  each  county  $10,  Mississippi;  $3  semiannually,  Mis- 
souri; $250,  New  Mexico;  $12,  Ohio;  each  counts'  $10,  Tennessee; 
each  county  $5, Texas;  $250,  Virginia;  $100,  West  Virginia;  $30, Wis- 
consin. One-horse  wagon:  $40,  Alabama;  $50  to  $100,  Idaho;  $40, 
Louisiana;  $150,  Maryland;  $40,  Michigan;  $15,  Mississippi;  $2.50, 
New  Mexico;  $20,  Ohio;  each  county  $20,  Tennessee;  each  county 
$7.50,  Texas;  $500,  Virginia;  $150,  West  Virginia;  $45,  Wisconsin. 
Two-horse  wagon:  $55,  Alabama;  $50,  Kentucky:  $75,  Louisiana; 
$200,  Maryland;  $75,  Michigan;  $30,  Mississippi;  $10,  Missouri; 
$300,  New  Mexico;  $28,  Ohio;  each  county  $30,  Tennessee;  each 
county  $10,  Texas;  $100,- Virginia;  $200,  West  Virginia;  $75,  Wis- 
consin. Railroad  or  steamboat:  $100,  Michigan.  On  horseback  or 
other  animals:  $25,  Alabama;  $30,  Kentucky;  $25,  Louisiana;  $15, 
Mississippi;  $20,  Ohio;  $500,  Virginia.  Of  coal  oil:  $10,  Tennessee. 
Of  clocks:  $500,  Alabama;  $100,  Arkansas;  in  each  county  $100, 
Georgia;  $100,  Indian  Territory;  $200,  Louisiana;  each  county  $15 
to  $25,  Tennessee ;  each  county  $250,  Texas.  Of  clocks  and  smooth- 
ing irons:  $100  each  county,  Georgia.  Of  jewelry:  Per  county  $50, 
Mississippi;  $200,  Rhode  Island.  Of  cakes:  $25,  Hawaii.  Of  bed 
springs:  $15  per  county,  Mississippi.  Of  washing  machines:  $15  per 
count}',  Mississippi.  Of  medicine:  $50  each  county,  with  music  $100, 
Alabama;  each  city  and  town  per  day  $100,  Florida:  $100,  Missis- 
sippi; $150  to  $200  in  each  county,  Tennessee;  $100,  Texas;  $5  to 
$25,  Washington;  $50,  Alaska.  Of  spectacles  or  eyeglasses:  $5  each 
county, Alabama;  $15, Mississippi.  Of  patent  school  apparatus, etc.: 
$150  upward,  Tennessee. 

Pension  agents — $10,  Florida. 

Phonograph  for  hire — $25,  Texas.  Kinetoscopes,  etc.:  $125,  Texas. 
Panoramas:  $10,  Texas. 

Photographers — Traveling  $5  to  $15,  Alabama:  $20,  Delaware;  $10, 
Georgia;  $5  to  $120,  Louisiana;  $5  to  $50,  Mississippi. 

Physicians— $10,  Delaware;  $10,  Florida;  $10,  Georgia;  $5  to  $120, 
Louisiana;  $5,  Texas;  $10  to  $25,  Virginia.  Itinerant:  $250,  Iowa; 
$50,  Texas;  $.50,  Alaska. 

Piano  and  organ  agents — $20,  Mississippi. 

Pig  iron  storage  companies — $50,  Alabama. 

Pilots — $5  and  5  per  cent  of  charges,  Washington. 

Pistols  and  arms,  dealers  in — $10,  Florida;  $25,  Georgia;  $100,  Ken- 
tucky ;  wholesale  $10,  and  cartridges  $5,  retail  $100  and  cartridges  $50, 
Louisiana;  $5,  Mississippi. 

Planing  mills — $50,  Alaska. 

Playing  cards,  dealers  in — $5,  Alabama;  $10,  Kentucky;  retail  $5, 
wholesale  $20,  Tennessee. 

Plumbers  or  gas  fitters — $5  to  $10,  Alabama;  $5  to  $20,  Tennessee. 

Pool  selling — Per  day  $5,  Missouri;  per  day  $5,  Texas. 

Pool  tables— $25  to  $100,  Alabama. 

Presidents,  superintendents,  or  agents — Of  express  companies,  of  tele- 
graph companies,  of  railroad  companies,  of  street  railroad  compa- 
nies, of  steamboat  companies,  of  telephone  companies,  of  electric 
light  companies,  of  sleeping  car  companies,  of  parlor  car  companies, 
of  banks,  of  building  and  loan  associations,  of  gas  companies:  All  $10, 
Georgia. 

Race  tracks— $100  to  $500,  Alabama;  $50  to  $2,500,  Louisiana;  $100  to 
$200,  Tennessee;  $50  to  $100,  Texas. 

Railroad  and  steamboat  ticket  brokers — $50  to  $100,  Alabama;  $50, 
Georgia;  $25  to  $50,  Louisiana;  scalpers,  $25,  Mississippi;  $5,  North 
Dakota;  $25  to  $75,  Tennessee. 

Railroad  companies — $100  per  mile,  Alaska;  $2  to  $20'per  mile,  Missis- 
sippi; $120  per  mile,  Tennessee. 

Railroad  terminal  companies — $20  to  $50,  Tennessee. 


642 


WEALTH,  DEBT,  AND  TAXATION. 


Real  estate  brokers  or  agents — $5  to  $15,  Alabama;  $50,  Delaware;  $25, 
Maryland;  $10,  Mississippi;  $10,  New  Mexico;  $5  to  $40,  Tennessee; 
$50,  Alaska. 

Rectifiers— $200,  Alabama;  $100  to  $300,  Kentucky;  $20  to  $6,250, 
Louisiana;  $100  to  $1,000,  Pennsylvania;  $150,  Virginia. 

Restaurants — $25,  Delaware;  $5  to  $15,  Florida;  $1,  Maine;  ordinaries, 
$25  to  $450,  Maryland;  $5  to  $125,  Mississippi;  $20  to  $60,  New  Mex- 
ico; $5  to  $200,  Pennsylvania;  $3  to  $40,  Tennessee;  $25  and  percent- 
age on  rental,  Virginia;  3  per  cent  of  annual  rental,  West  Virginia; 
$15,  Alaska. 

Sales,  fire,  bankrupt,  insolvent — $100,  Alabama. 

Sawmills — $20  to  $6,250,  Louisiana;  $15  to  $100,  Mississippi;  10  cents 
per  1,000  feet,  Alaska. 

Secondhand  clothing — $500,  Mississippi. 

Securities,  dealers  in — $5  to  $50,  Tennessee;  $100,  Hawaii. 

Sewing  machine  agents — $25  for  each  county,  Alabama;  companies  $200 
and  each  agent  $5,  Arkansas;  for  each  county,  $10,  Florida;  $200, 
Indian  Territory;  $10  to  $50,  Mississippi;  companies  $200 and  agents 
$5,  Tennessee;  $15,  Texas;  companies  $200  and  canvassers  $20,  agents 
$15  in  first  county  and  $10  in  others,  Virginia;  $10,  West  Virginia. 

Shipping  brokers — $50  and  for  each  runner  $5,  Maryland;  $10,  Texas; 
$50,  Virginia. 

Ships  and  shipping — $1  per  ton,  Alaska. 

Shoot  the  chutes— $20  to  $6,250,  Louisiana. 

Shooting  galleries — $15,  Alabama;  $50,  Georgia;  $5  to  $20,  Mississippi; 
$30  each  county,  Texas;  $25,  West  Virginia. 

Shows  and  exhibitions — $5  per  day,  Alabama;  $30  to  $50,  Georgia;  $5 
each  exhibition,  Idaho;  for  each  performance  $5  to  $25,  Indiana;  per 
show  $1  to  $3,  per  year  $30,  Maryland ;  $5  to  $25  per  day,  Mississippi ; 
$5  per  day,  Tennessee;  $2,  Texas;  per  day  $20  to  $100,  Virginia;  10- 
cent  shows,  $20  per  week,  West  Virginia;  $5  per  performance,  Hawaii. 
For  sale  of  medicine:  $50,  Texas. 

Side  shows,  with  circus — $10  per  day,  Alabama;  one-half  circus  rates, 
Kentucky;  $20  per  day,  Mississippi;  $15  to  $20  per  day,  Tennessee; 
$10  per  day,  Texas;  $10  per  exhibition,  West  Virginia;  $20,  Wis- 
consin. 

Skating  rinks— $25,  Alabama;  $15,  Florida;  $5  to  $30,  Tennessee ;  $25, 
Texas;  $10  per  quarter,  Virginia;  $5  to  $100,  West  Virginia. 

Slaughtering — $30  to  $150,  Arizona;  one-half  of  1  per  cent  on  product, 
Kentucky;  $20  to  $6,250,  Louisiana;  $10  to  $150,  Tennessee. 

Sleeping  car  companies— $200,  Mississippi;  $2,500,  Tennessee. 

Slot  machines— $2,  Alabama;  $2.50,  Virginia;  $2.50  to  $100,  Tennessee. 

Soda  water,  etc. — $5  to  $10,  Mississippi ;  in  7  classes,  $5  to  $50,  Louisiana. 

Stallions  or  jacks  for  use  of  mares — $10,  nonresident  $20,  Delaware;  $5, 
Florida;  various  rates,  Kentucky;  $10  to  highest  price,  Maryland;  $5, 
Mississippi;  $10,  Virginia. 

Stave  and  spoke  factories — $10,  Mississippi. 

Steamboats — $1  per  ton  up  to  $100,  Florida. 

Stock  and  bond  dealers — $20,  Alabama. 

Stockyards — $15  to  $75,  Tennessee. 

Stove  agents  or  peddlers — $100,  Arkansas;  $200  each  county,  Georgia; 
$100,  Indian  Territory;  $200,  Louisiana;  each  county  $15  to  $25, 
Tennessee;  each  county  $200,  Texas. 

Street  railroads — $10  to  $40,  Alabama;  three-eighths  of  1  per  cent  of 
gross  receipts  or  $15  to  $100,  Louisiana;  $25,  Mississippi;  per  mile  of 
track,  $1.50  to$8,  Tennessee;  tramways  $10  per  mile,  Alaska;  per  car, 
$10,  Hawaii. 

Sugar  refineries — One-eighth  of  10  per  cent  gross  receipts,  Louisiana. 

Supply  cars — $100,  Alabama. 

Switchback— $75,  Delaware;  $20  to  $6,250,  Louisiana. 

Taxidermists — $10,  Alaska. 

Telegraph  companies — In  20  classes,  $20  to  $6,250,  Louisiana;  $300, 
Maryland;  $250  plus  25  cents  per  mile,  Mississippi;  $20  to  $700, 
Tennessee.     Foreign:  $3  per  $1,000  of  gross  receipts,  Louisiana. 

Telephone  companies — In  cities,  $5  to  $25,  Alabama;  $10  to  $100, 
Florida;  in  20  classes,  $20  to  $6,2,50,  Louisiana;  $2.50  to  $50,  Missis- 
sippi.    Foreign:  $5  per  $1 ,000  gross  receipts,  Louisiana. 


Theaters— $25  to  $50,  Alabama;  $25  to  $250,  Florida;  in  4  classes,  $175 
to  $400  and  by  cities  $10  to  $100,  Louisiana;  $10  to  $50,  Mississippi; 
$10  to  $25,  New  Mexico;  $30  to  $500,  Pennsylvania;  $10  to  $200, 
Tennessee;  $1  to  $25,  Texas;  per  performance  $3,  per  week  $10,  Vir- 
ginia; $10  to  $20  per  week,  West  Virginia;  $100,  Alaska.  Traveling 
shows:  $5  per  day,  Florida;  $5  per  day,  $25  per  week,  $100  per  month, 
Tennessee.     Dealers  in  tickets:  $5  to  $15,  Tennessee. 

Timber  mills,  land — $25  to  $50  and  $25  per  acre,  Mississippi. 

Toll  bridges — $5  to  $75,  Alabama;  indeterminate,  Idaho;  $7,  Texas. 

Toll  roads— $12.50  to  $250,  Tennessee;  on  trail,  $200,  Alaska. 

Trading  cars— $100  to  $250,  Mississippi. 

Trading  stamp  companies — Each  county,  $10,  Kentucky;  $250  to  $500, 
Louisiana;  $2.50  to  $500,  Tennessee. 

Transportation  lines,  freight  and  passenger,  river  and  lake  steamers — $1 
per  ton,  Alaska. 

Undertakers — $20,  Mississippi;  $5  to  $50,  Tennessee. 

Variety  shows,  etc. — If  females  are  employed  as  waitresses,  rjer  perform- 
ance, $50,  Florida;  certain  dances,  $2,500  to  $5,000,  Louisiana;  $200, 
Tennessee. 

Warehouses,  grain  elevators,  etc. — $10  to  $20,  Alabama;  $30  to  $400, 
for  sugar  and  molasses  $75  to  $1,000,  Louisiana;  $2.50  to  $20,  Missis- 
sippi; $2  to  $3,  North  Dakota;  $1,  South  Dakota:  $15  to  $50,  Ten- 
nessee; $25  to  $50,  Virginia;  and  docks,  10  cents  per  ton,  Alaska. 

Waterworks  or  companies — $15  to  $100,  Alabama;  $10to$100, Florida; 
20  classes  $20  to  $6,250,  Louisiana;  $20  to  $1.50,  Mississippi:  $25  to 
$800,  Tennessee;  $50,  Alaska. 

Weapons — Dealers  in  pistols,  bowie  knives,  and  brass  knuckles:  $50, 
Alabama:  $25,  Mississippi.  Dealers  in  pistols  and  rifle  cartridges: 
$10  to  $50,  Alabama. 

Wild  West  shows — $15  to  $30  per  day,  Tennessee. 

Wineries — $50,  Kentucky. 

Witness  certificates,  dealing  in  claims  against  the  state — $10,  Alabama. 

Woodyards — $5  I  o  $20,  Mississippi. 

VI,  VII,  etc. 

For  taxes  other  than  those  included  under  the  five 
classes  given  above,  see: 

Tax  on  official  commissions — Maryland. 

Tax  on  commissions  of  executors  and  administrators — Maryland. 

Income  tax — Hawaii,  North  Carolina,  South  Carolina,  Virginia. 
(See,  also,  General  property  tax,  page  685,  for  instances  in  which  incomes 
are  taxed  as  property,  and  Corporation  taxes  and  Business  taxes  and 
licenses,  page  633,  for  instances  in  which  gross  or  net  earnings  form  the 
basis  of  taxation.) 

Tax  on  emoluments  of  officers — Pennsylvania. 

Transfer  tax — Tennessee. 

Litigation  tax — Tennessee. 

Tax  on  wills  and  administrations — Virginia. 

Tax  on  deeds  and  contracts — Virginia. 

Tax  on  suits — Virginia. 

B,  C,  etc. 

Fees  and  other  miscellaneous  revenues  not  sum- 
marized, see  under  each  state. 

County  Revenues. 

a.   TAXES. 

I.    The  general  property  tax. 

The  general  property  tax  when  used  by  the  counties 
is  not  an  independent  tax,  and  there  is  generally  no 
separate  county  machinery  for  its  administration.  It 
is  essentially  a  part  (1)  of  the  state  or  (2)  of  the  local 
general  property  tax. 

1.  Base. — The  property  included  and  the  methods  of 
its  assessment  and  equalization  a-re  substantially  the 


TAXATION  AND  REVENUE  SYSTEMS. 


643 


same  for  county  as  for  state  purposes  and  have  been 
described  under  state  taxation  for  all  states  except: 

(1)  Rhode  Island,  which  levies  no  separate  county  tax. 

(2)  The  following,  in  which  the  general  property  tax  is 
essentially  a  local  tax  and  the  county  taxes  are  sub- 
stantially the  same  as  those  of  the  lesser  local  units: 
Connecticut,  Maine,  Massachusetts,  New  Hampshire, 
and  Vermont.  (3)  The  following,  in  which,  however, 
the  only  exception  is  that  county  taxes  are  levied  on 
the  county  roll  before  revision  by  the  state  board  of 
equalization :  Illinois  and  Wisconsin.  (4)  Alaska,  Dis- 
trict of  Columbia,  Hawaii,  and  Indian  Territory,  which 
have  no  counties  proper.  Hawaii  has  since  1902  made 
a  "division"  analogous 'to  the  county. 

In  many  instances,  by  law  or  by  practice,  exemp- 
tions may  be  extended  by  the  county  authorities  to 
manufacturing  plants  of  one  sort  or  another,  usually 
for  a  limited  term  of  years.  The  following  were  the 
only  instances  that  could  be  found  in  the  general  laws. 
It  is  not  uncommon,  however,  to  grant  these  exemp- 
tions by  local  or  special  laws.  Such  laws  were  not 
searched  and  consequently  can  not  be  included  here : 

Factories  and  shipbuilding  plants,  Alabama;  certain  industries, 
Maryland;  manufacturing  plants,  domestic  mutual  (ire  insurance  com- 
panies, Mississippi;  in  certain  counties,  manufactories,  Pennsylvania- 

2.  Rate. — The  rate  at  which  taxes  shall  be  computed 
upon  the  assessed  valuation  is  fixed  by  the  legislative 
authority  of  the  county  in  all  states  except  the  follow- 
ing, in  which  a  lump  sum  is  apportioned  to  the  towns 
and  no  county  rate  proper  is  determined.  The  appor- 
tionment is: 

(1)  By  the  county  legislative  authority,  in  Michigan  and  New  Hamp- 
shire. (2)  By  the  county  representatives  to  the  state  legislature,  in 
Connecticut.  (3)  By  the  county  legislative  authorities,  on  authoriza- 
tion by  the  legislature,  in  Maine.  (4)  By  the  state  legislature  in  Massa- 
chusetts, South  Carolina,  and  Vermont. 

The  rate  is  limited  in  the  following  manner: 

(1)  It  may  not  exceed  the  rate  named,  without  any  exception  as  to 
purposes  and  without  specification  of  rates  for  special  purposes  or  classi- 
fication of  counties:  50  per  cent  of  state  tax,  Georgia;  75  cents,  Illinois; 
usually  33  cents,  Indiana;  10  mills,  Louisiana;  some  counties  2  percent, 
New  York;  1  cent  on  the  dollar,  Pennsylvania.  (2)  It  may  not  exceed 
the  rate  named,  except  for  payment  of  debt  charges:  One-half  of  1  per 
cent,  Alabama;  $2,  Arizona;  50 cents,  Kentucky;  $1.. 50  and  50  cents  for 
debt  charges,  Nevada;  3  per  cent,  Wisconsin;  12  mills,  Wyoming.  (3) 
It  may  not  exceed  the  rate  named,  except  for  schools  and  debt  charges: 
95  rents,  West  Virginia.  (4)  It  may  not  exceed  the  rate  named,  except 
for  roads,  schools,  and  debt:  30  cents,  Tennessee.  (5)  For  all  purposes 
combined  or  for  any  one  of  a  number  of  specified  purposes  it  may  not 
exceed  a  given  limit:  County  rate,  together  with  state  rate  not  to 
exceed  16  mills,  or  13J  mills,  except  for  debt,  and  for  roads  2  mills, 
Mississippi;  16  mills,  schools  minimum  2  mills,  poor  one-fifth  of  1  per 
cent,  roads  minimum  1  mill,  maximum  2  mills,  Montana;  not  to  exceed 
a  total  of  $1.50,  and  distributed,  not  to  exceed,  for  general  purposes  and 
poor  9  mills,  roads  5  mills,  bridges  4  mills,  sinking  fund  some  counties  3 
mills,  others  4  mills,  Nebraska;  8  mills,  general  purposes  5  mills,  poor  1 
mill,  roads  2  mills,  bridges  2  mills,  South  Dakota.  (6)  Rates  for  speci- 
fied purpose  limited:  For  general  purposes  5  mills,  for  certain  debt 
charges  5  mills,  for  schools  5  mills,  Arkansas;  for  general  purposes  $1, 
schools  50  cents,  debt  50  cents,  California;  usually  5  mills  for  general 


purposes  and  3  mills  for  roads,  Florida;  for  general  purposes^  1.50, 
bridges  25  cents,  Idaho;  for  general  purposes  5  mills,  courthouses  and 
jails  2  mills,  New  Mexico;  general  purposes  8  mills,  bridges  2  mills, 
roads  5  mills,  irrigation  fund  one-fourth  of  1  mill,  extraordinary  tax  by 
vote  3  mills,  North  Dakota;  for  schools  3  mills,  South  Carolina;  general 
purposes  one-fourth  of  1  per  cent,  roads  and  bridges  15  cents,  debts  and 
permanent  improvements  25  cents,  road  improvements  15  cents,  schools 
by  vote  20  cents,  Texas;  general  purposes  5  mills,  schools  4  mills,  Utah; 
roads  15  cents,  schools  10  cents,  Virginia;  debt  5  mills,  general  purposes 
8  mills,  schools  8  mills,  road  tax  5  mills,  bridges  3  mills,  Washington. 
(7)  Counties  are  classified  and  the  rates  are  limited  according  to  the 
total  assessed  valuation:  For  general  purposes  3  to  25  mills,  minimum 
rate  for  schools  2  mills,  maximum  5  mills,  Colorado;  for  general  pur- 
poses 4  to  6  mills,  schools  minimum  1  mill,  maximum  3  mills,  bridges  3 
mills,  poor  1  mill,  Iowa;  one-half  of  1  to  1  per  cent,  Kansas;  some 
counties  5  mills,  others  $5,000  but  not  over  10  per  cent,  Minnesota;  35  to 
50  cents,  Missouri;  2f1ff  mills  to  14^  mills,  Ohio. 

The  limits  set  by  law  may  be  exceeded  by  popular  vote  in  the  following 
cases:  For  schools  by  three-fifths  vote,  Alabama;  for  debt  charges  by 
two-thirds  vote,  California;  for  schools,  Florida,  Illinois,  Iowa,  Kansas, 
Missouri,  Nebraska,  Washington;  three-fifths  vote,  West  Virginia. 

3.   Collection. — County   taxes   are  collected   in   the 
same  manner  as  the  state  taxes  or  the  local  taxes  with 
which  they  are  affiliated  (see  above,  for  the  division 
of    states) . 
II.  Poll  taxes. 

The  county  poll  tax  is  sometimes  a  road  tax  and 
falls  only  upon  the  taxable  polls  in  the  road  districts. 
When  such  a  tax  is  covered  into  the  county  treasury 
and  does  not,  as  is  more  often  the  case,  stop  with  the 
road  district,  it  has  been  accounted  a  county  tax. 
But  the  distinction  between  a  county  road  poll  tax, 
especially  if  payable  in  labor,  and  a  road  district  poll 
tax  is  at  best,  an  arbitrary  one. 

There  is  no  poll  tax  for  county  purposes  in : 

Colorado,  Connecticut,  Georgia,1  Illinois,  Indian  Territory,  Kansas, 
Maine,  Maryland,  Massachusetts,  Michigan,  Minnesota,  Mississippi,1 
New  Jersey,  New  Mexico,1  New  York,  Ohio,  Pennsylvania,  Rhode 
Lland,  South  Carolina,1  West  Virginia,  and  Wisconsin.  The  county 
receives  half  the  state  poll  tax  in  Nevada. 

The  county  poll  tax  falls  on: 

Males  21  to  40  years  of  age  in  North  Dakota;  males  21  to  50  years  of 
age  in  Idaho,  Indiana,  Nebraska,  North  Carolina,  Oklahoma,  Oregon, 
Utah,  Washington,  and  Wyoming;  males  21  to  55  years  of  age  in  Cali- 
fornia and  Florida;  males  21  to  60  years  of  age  in  Arizona,  Missouri, 
Montana,  Nevada,  and  Texas ;  males  21  to  70  years  of  age  in  New  Hamp- 
shire and  Vermont;  males  over  21  years  of  age  (electors)  in  Arkansas, 
Kentucky,  Louisiana,  Tennessee,  Virginia,  South  Dakota;  not  deter- 
mined in  Delaware. 

The  rate  is : 

$2.50,  Arizona;  $1,  Arkansas;  $3,  California;  25  cents  to  $1.25,  Dela- 
ware; $1,  Florida;  $2,  Idaho;  fixed  annually  by  county  legislative 
authority,  Indiana;  50  cents,  Iowa;  $1.50,  Kentucky;  $1,  Louisiana; 
$1.50  to  $3,  Missouri;  $2,  Montana;  $3, .Nebraska;  (state  and  county), 
Nevada;  taxed  as  property ,  New  Hampshire ;  $1,  New  Jersey;  $2  (state 
and  county),  North  Carolina;  $1,  North  Dakota;  4  days' work  or  $4, 
Oklahoma;  $1,  Oregon;  $1,  South  Dakota;  $1,  Tennessee;  25  cents, 
Texas;  $3,  Utah;  taxed  as  property,  Vermont;  50  cents,  Virginia ;  $2, 
Washington;  $2,  Wyoming. 

1  For  explanation  of  county  receipts  from  poll  taxes,  see  text  of 
state  revenue  systems. 


644 


WFALTH,  DEBT,  AND  TAXATION. 


III.  Inheritance  tax. 

The  inheritance  tax  is  not  used  by  the  counties ' 
directly,  except: 

In  Montana,  where  40  per  cent  of  the  state  inheritance  tax  is 
passed  directly  to  the  county  school  fund;  in  Ohio,  where  25  per  cent 
of  the  state  inheritance  tax  is  credited  to  the  county;  and  in  Wisconsin, 
where  15  per  cent  of  the  state  inheritance  tax  is  retained  by  the  counties. 

In  some  other  states  the  inheritance  tax  is  passed 
into  the  general  school  fund  and  apportioned  to  the 
counties  with  the  rest  of  the  moneys  in  the  school  fund. 

IV.  Corporation  taxes. 

The  counties  do  not  ordinarily  impose  or  share  in 
special  corporation  taxes. 

The  following  are  the  exceptions  found : 

One-half  the  territorial  tax  on  car  companies  and  one-half  the  tax  on 
gross  receipts  of  express  companies  is  distributed  to  the  counties,  the 
former  on  a  mileage  basis,  the  latter  according  to  business  done,  New 
Mexico;  the  bonus  received  by  the  state  from  foreign  railway  corpora- 
tions is  to  be  paid  to  the  counties  in  which  the  lines  are  located  in  propor- 
tion to  assessed  valuation,  Pennsylvania;  3  per  cent  of  the  taxes  on 
street  railroads  and  electric  light  and  power  companies,  Wisconsin. 

V.  Business  taxes  and  licenses. 

The  following  states  do  not  (so  far  as  the  general 
statutes  show)  utilize  license  taxes  for  county  revenues : 

Delaware,  Kentucky,  Maine,  Massachusetts,  New  Hampshire,  Rhode 
Island,  Virginia,  Washington,  and  Wisconsin. 

In  the  following  states  the  counties  receive  a  per- 
centage of  the  state  license  taxes : 
40  per  cent,  Idaho;  one-half,  New  Mexico. 

In  the  following  states  the  counties  are  permitted 
to  levy  additional  license  taxes  upon  the  same  subjects 
as  are  taxed  in  this  manner  by  the  state : 

Not  to. exceed  50  per  cent  of  the  state  license  taxes,  Alabama  and 
Florida;  not  to  exceed  those  of  the  state,  Louisiana;  same  as  Alabama, 
except  that  counties  may  not  tax  insurance  companies,  telegraph, 
express,  or  sleeping  car  companies,  building  and  loan  associations,  and 
commercial  agencies,  Mississippi;  not  to  exceed  the  state  revenue  tax 
more  than  100  per  cent,  Missouri;  not  to  exceed  the  state  license,  Ten- 
nessee; same  as  Alabama,  Texas. 

Municipal  Revenues. 

Under  this  heading  are  included  the  revenues  of  all 
divisions  of  government  smaller  than  or  ranking  below 
the  counties.  These  are  the  cities,  towns,  villages, 
school  districts,  and  other  divisions — such  as  road  dis- 
tricts, drainage,  irrigation,  levee,  sanitary  districts, 
etc. — which  receive  revenues  from  taxation. 

These  municipalities  have  independent  but  re- 
stricted powers  of  taxation,  all  derived  from  the  state. 
For  the  most  part  they  depend  upon  the  same  taxes 
and  sources  of  revenue  as  the  states.  Their  main 
dependence  everywhere  is  the  general  property  tax, 
which  is  used  by  them  even  when  it  is  not  used  by 
the  states.  This  is  supplemented,  in  general,  by  poll 
taxes,  by  licenses  of  one  sort  or  another,  and  by 
income  from  municipal  industries. 

1  The  Louisiana  inheritance  tax  of  1904  was  a  county  tax. 


A  detailed  analysis  of  city  revenues  is  given  in  Cen- 
sus Bulletin  20,  which  makes  it  unnecessary  to  give 
an  extended  statement  here. 

The  following  analysis  is  based  solely  on  the  provi- 
sions of  the  general  statutes  of  the  different  states,  no 
attempt  having  been  made  to  summarize  city  charters 
or  ordinances.  In  most  of  the  larger  cities  the  revenue 
system  is  governed  by  the  charter  and  is  under  the  con- 
trol of  the  city  government.  These  city  systems,  while 
conforming  in  the  main  to  the  system  here  outlined, 
present  numerous  exceptions.  It  should  therefore  be 
understood  that  the  analysis  given  here  is  that  of  the 
more  general  system,  in  the  main  the  provisions  appli- 
cable to  the  smaller  cities,  to  towns,  to  villages,  to 
school  and  other  taxing  districts  which  are  governed 
under  provisions  of  the  general  laws. 

A.    TAXES. 

I.    The  general  property  tax. 

This  tax  is  used  for  local  purposes  in  every  state  and 
territory  in  the  Union.  It  is  used  by  the  municipalities 
even  in  those  states  where  it  is  not  used  for  state  pur- 
poses. 

The  chief  characteristics  of  the  general  property  tax, 
namely,  the  property  included,  the  exemptions,  the 
methods  of  assessment,  of  equalization,  of  fixing  the 
rate,  and  of  collection  have  been  described  above, 
under  state  taxes.  This  has  been  done  to  facilitate 
comparisons  with  other  states  even  in  the  case  of  the 
four  states  and  one  territory,  namely,  Connecticut, 
Delaware,  New  Jersey,  Pennsylvania,  and  Alaska, 
which  do  not  use  this  tax  for  state  purposes. 
1.  Base — 

a.  The  property  included  and  exempt. — As  a  general 
rule  municipalities  tax  the  same  property  as  the  state 
and  they  may  not  tax  any  property  exempt  from 
state  taxation.  In  some  cases  cities  are  permitted 
to  exempt  manufacturers,  usually  for  a  term  of  years, 
from  city  taxation,  even  though  they  are  taxable  for 
state  purposes.  Such  provisions  are  found  in  the 
general  laws  of  Alabama,  Kentucky,  Maryland,  Mis- 
sissippi, New  Hampshire,  New  Jersey,  New  York, 
Rhode  Island,  South  Carolina,  and  Vermont. 

The  same  result  is  accomplished  elsewhere  by  char- 
ter provisions  and  in  other  ways.  Such  a  practice 
rests  in  some  states  entirely  on  custom  without  sanc- 
tion of  the  law. 

b.  Assessment. — The  assessment  or  valuation  is  usu- 
ally the  same  as  that  for  state  purposes.  In  other 
words,  the  town,  city,  or  district  roll  is  a  mere  copy  or 
excerpt  from  the  great  roll  of  the  state,  containing  the 
property  subject  to  taxation  within  that  town,  city,  or 
district.  But  in  many  cases  the  cities  have  authority 
to  make  or  use  another  valuation  for  the  purpose  of 
city  taxation.  That  is,  there  are  two  assessment  rolls, 
a  state  roll  and  a  city  roll.  This  practice  gives  rise 
to   some  confusion,   as  the  same  pieces  of  property 


TAXATION  AND  REVENUE  SYSTEMS. 


645 


may  be  assessed  at  one  value  for  city  purposes  and 
quite  a  different  one  for  state  or  county  purposes. 

The  general  statutes  do  not  always  show  clearly 
whether  the  cities  are  allowed  the  privilege  of  a  sep- 
arate and  additional  assessment.  As  such  privileges 
existed  in  many  places  before  it  was  undertaken  to 
establish  a  general  system  and  were  confirmed  in  city 
charters  and  the  like,  they  were  never  carried  into 
the  general  code.  There  appears,  however,  to  be  one 
assessment  roll  only  in  all  states,  except  the  following, 
in  which  municipalities  generally  or  certain  classes  of 
municipalities  are  permitted  to  make  a  separate  roll 
for  local  taxation: 

Alabama;  cities  only,  Arizona;  California;  but  it  may  not  exceed 
state  valuation,  Florida:  Georgia,  Iowa,  Kentucky,  Maine;  St.  Louis 
and  cities  of  the  first  and  second  classes,  Missouri;  Montana,  South 
California,  Texas;  cities  of  the  second,  third,  and  fourth  classes,  Wash- 
ington; cities  of  over  10,000  inhabitants,  West  Virginia;  and  Wyoming. 

In  some  states  the  assessment  roll  is  primarily  local, 
the  state  taxes  being  apportioned  to  the  municipali- 
ties and  applied  to  their  rolls.  In  some  of  these 
states  there  is  an  equalization  of  the  roll  for  state 
purposes,  but  the  municipal  taxes  are  levied  on  the 
original  roll  as  it  stood  before  equalization.  The 
apportionment  of  the  state  taxes  in  lump  sums,  as  in 
Massachusetts  and  Michigan,  to  the  municipalities 
has  this  effect.  The  states  having  in  this  limited 
sense  a  separate  roll  for  municipal  as  distinguished 
from  state  taxation  are: 

Connecticut,  Maine,  Massachusetts,  Michigan,  New  Hampshire,  New 
Jersey.  New  York,  Oregon,  Pennsylvania,  Rhode  Island,  South  Dakota, 
Vermont,  Washington,  West  Virginia,  and  Wisconsin. 

c.    Equalization. — The    provisions   for    equalization 
between  localities  and  between  individuals — generally 
called  "review''  in  Eastern  states — have  been  fully 
covered  under  the  description  of  State  revenues. 
2.  Rate— 

The  rate  is  regularly  fixed  by  the  local  legislative 
authority.  It  is  subject,  however,  to  various  limita- 
tions, both  by  general  statutory  or  constitutional  pro- 
visions, and  by  city  charters. 

The  following  general  limitations  of  municipal  tax 
rates  have  been  found  in  the  statutes.  In  general, 
these  rates  may  be  exceeded  by  popular  vote: 

The  rate  may  not  exceed:  One-half  of  1  per  cent,  Alabama;  various 
limits  according  to  size  of  city  and  purposes,  Arizona;  5  mills  for  gen- 
eral purposes  and  5  mills  for  debt  created  prior  to  1874,  Arkansas;  2  per 
cent,  California;  1  per  cent,  Florida;  except  for  street  improvements, 
one-half  of  1  per  cent,  Georgia;  10  mills,  Idaho;  2  per  cent,  Indian  Ter- 
ritory; 90  cents,  Indiana;  10  mills,  Iowa;  first-class  cities  2  per  cent, 
second  class  4  per  cent,  Kansas;  limits  varying  with  size  of  city,  Ken- 
tucky; 10  mills,  Louisiana;  various  limits  according  to  the  size  of  the 
municipality,  Michigan  and  Minnesota:  for  general  revenue,  12  mills, 
Mississippi;  various  limits  according  to  size  of  city,  Missouri;  1  per 
cent,  Montana;  various  rates  according  to  size  of  city,  Nebraska;  vari- 
ous rates  for  different  cities,  Nevada  and  New  Jersey;  1  per  cent  in 
cities,  one-half  of  1  per  cent  in  towns.  New  Mexico;  1  per  cent,  .North 
Carolina:  various  limits  for  different  purposes,  North  Dakota,  Ohio, 
and  Oklahoma:   1  per  cent,  Oregon;  various  limits  for  different  classes 


of  cities,  Pennsylvania;  1  per  cent,  Rhode  Island;  various  limits  accord- 
ing to  size  of  cities,  South  Carolina;  general  revenue,  cities  10  mills, 
towns  and  villages  5  mills,  South  Dakota;  various  limits  according  to 
class  of  municipality,  Texas,  Utah,  and  Washington;  $1,  West  Virginia; 
in  towns  1\  per  cent,  cities  3 J  per  cent,  Wisconsin;  8  mills,  Wyoming. 

3.   Collection — 

The  provisions  for  the  collection  of  city  taxes  are 
substantially  the  same  as  those  for  the  collection  of 
state  taxes. 

The  general  rule  is  that  these  taxes  are  collected  by 
the  officers  who  collect  state  and  county  taxes.  Pro- 
vision for  special  tax  collectors  is  often  made  in  the 
city  charters  and  not  in  the  general  statutes.  In  the 
following  states  collection  as  provided  in  the  general 
statutes  is  by  municipal  as  distinct  from  state  officers: 

Alabama,  Arizona;  some  cities,  California;  Kentucky,  Montana; 
some  cities,  Tennessee;  Texas;  cities  of  the  third  class,  Utah;  West 
Virginia,  Wyoming. 

II.  Poll  taxes. 

1.  Subjects: 

(N.  B. — Except  as  noted  below  the  exempt  classes 
are  the  same  for  local  poll  taxes  as  for  state.) 

Adult  males,  Alabama;  able-bodied  males  21  to  50  years  of  age,  Ari- 
zona; able-bodied  males  21  to  45,  Colorado;  males  21  to  70,  Connecti- 
cut; able-bodied  males  21  to  45,  except  ministers,  Florida;  able-bodied 
males,  Idaho;  cities  same  as  state,  road  districts,  able-bodied  males  21 
to  50,  Indiana;  able-bodied  males  21  to  45,  Iowa;  able-bodied  males 
21  to  45,  except  in  cities  of  second  class  21  to  50,  Kansas;  adult  males, 
Kentucky;  males  21  to  .50,  except  pensioners,  soldiers,  mentally  incom- 
petent, and  paupers,  Michigan;  qualified  voters,  Minnesota;  cities  of 
first  class,  males  21  to  GO,  second  class  21  to  50,  villages  21  to  50,  Mis- 
souri; able-bodied  males  21  to  60,  New  Mexico;  males  21  to  70,  except 
soldiers  and  sailors  maimed  in  war,  firemen,  clergymen,  paupers,  idiots, 
and  insane,  New  York;  same  as  state,  North  Carolina;  males  21  to  50, 
except  paupers,  idiots,  and  lunatics,  North  Dakota;  males  21  to  55, 
except  honorably  discharged  soldiers,  pensioners,  militiamen,  volunteer 
firemen,  Ohio;  able-bodied  males  21  to  50,  Oklahoma;  able-bodied 
males,  Oregon;  same  as  state,  Pennsylvania;  qualified  to  vote,  Rhode 
Island;  males  18  to  50,  South  Carolina;  males  21  to  50,  except  paupers, 
idiots,  and  lunatics,  South  Dakota;  same  as  for  state,  Tennessee;  males 
over  21,  except  idiots  and  lunatics,  Texas;  same  as  county,  Utah;  males 
over  21,  Virginia;  males  21  to  50,  Washington;  males  21  to  50,  Wis- 
consin. 

2.  Rates: 

$2,  Alabama;  two  days'  labor  on  roads  or  $4,  Arizona;  $2  or  two 
days'  labor,  Colorado;  $1,  Connecticut;  three  days'  labor  on  roads  or 
$1,  Florida;  cities  two  days'  labor  or  $2,  outside  cities  $4,  Idaho;  two 
to  four  days'  labor  or  SI. 25  per  da)',  Indiana;  two  days'  labor  or  $2  to 
$4,  Iowa;  townships  two  days  of  eight  hours  each  or  $3,  cities  of  first 
class  two  days  of  ten  hours  each  or  $3,  cities  of  second  class  $1,  Kansas; 
$1.50,  Kentucky;  one  day's  labor,  Michigan;  $2  or  labor,  Minnesota; 
lilies  of  first  class  $1.50,  second  class  $2,  villages  $3,  Missouri;  $3  or 
labor,  Montana;  $3  or  labor,  Nebraska;  not  to  exceed  $1,  New  Jersey; 
$1  or  labor,  New  Mexico;  one  day's  work  or  $1,  New  York;  not  fixed, 
North  Carolina;  one  day's  labor,  North  Dakota;  two  days'  labor  or  $3, 
Ohio;  cities  $1,  road  districts  four  days  or  $4,  Oklahoma;  $3  or  labor, 
Oregon;  cities  of  second  and  third  classes  $1,  road  tax  $1,  one-half  in 
money,  other  may  be  in  lalx>r,  Pennsylvania;  $1  or  enough  with  other 
taxes  to  amount  to  $1,  Rhode  Island;  labor  not  over  four  days  or  not 
over  $3,  South  Carolina;  one  day's  labor  or  not  over  $1.50,  South  Da- 
kota; not  to  exceed  $1,  Tennessee;  cities  not  over  $1,  road  districts 
labor  or  money  to  $3,  Texas;  fixed  by  city,  Utah;  fixed  by  council,  Vir- 
ginia; $2,  in  cities  of  third  class  $4,  Washington;  $1.50,  Wisconsin. 


646 


WEALTH,  DEBT,  AND  TAXATION. 


3.    Collection: 

The  same  as  other  municipal  taxes,  except: 

By  road  overseer  or  street  superintendent  or  similar  officer,  Arizona, 
Colorado,  Florida,  Idaho,  Indiana,  Iowa,  Kansas,  Minnesota,  Montana, 
Nebraska,  Ohio,  Oregon,  and  South  Carolina. 

III.  Inheritance  taxes. 
See  State  revenues. 

IV.  Corporation  taxes. 

Municipalities  seldom  levy  any  corporation  taxes  in 
the  sense  in  which  that  term  has  been  used  in  this 
compilation.  They  generally  tax  corporations  under 
the  general  property  tax  or  by  licenses. 

In  some  cities  franchises  to  use  the  public  streets 
have  been  granted,  on  condition  that  the  recipient 
pay  an  annual  rental  for  the  privilege,  which  is  fixed 
at  a  certain  percentage  of  the  gross  receipts.  Such  a 
rental  charge  is  sometimes  spoken  of  as  a  tax.  It  is, 
however,  a  pure  rental  charge  and  should  be  classed 
with  income  from  public  property. 

In  Connecticut,  Maine,  and  Massachusetts  the  state 
remits  to  the  towns  and  to  the  cities  some  of  the  taxes 
collected  by  it  from  corporations.  (See  special  analy- 
sis for  these  states.) 

In  Illinois  foreign  fire  insurance  companies  pay  2 
per  cent  of  their  gross  receipts  to  the  city  or  village 
for  the  benefit  of  the  fire  department.  The  same  pro- 
vision is  found  in  the  laws  of  Kansas  and  of  North  and 
South  Dakota.  Pennsylvania  remits  to  the  towns  one- 
half  the  net  amount  received  from  the  2  per  cent  tax 
on  premiums  of  foreign  insurance  companies. 

V.  Business  taxes  and  licenses. 

Business  taxes  and  licenses  are  more  extensively 
used  as  a  source  of  revenue  by  the  municipalities  than 
they  are  by  the  states  or  counties,  with  the  exception 
of  the  list  of  Southern  states  given  above,  which  use  a 
general  license  system  for  state  revenue. 

They  are  levied  under  the  direct  authority  of  the 
cities,  and  in  most  of  the  Northern  states  are  fixed  by 
local  ordinances  under  provisions  of  the  city  charters. 
In  these  states  it  is  the  exception,  rather  than  the  rule, 
to  find  any  definite  provisions  in  the  general  statutes 
concerning  local  licenses.  On  the  other  hand,  in 
those  Southern  states  which  use  the  license  or  excise 
taxes  for  state  purposes  it  is  customary  to  regulate 
local  licenses  by  general  statute.  Hence  the  following 
list  of  local  licenses  is  incomplete,  representing  as  it 
does  only  those  licenses  which  were  found  in  the  gen- 
eral statutes. 

In  many  cases  the  statutes  confer  general  powers  on 
the  city  authorities  to  license  and  tax  certain  classes 
of  business  and  leave  the  determination  of  the  rates  to 
the  cities.  In  such  cases  the  statutes  convey  no  infor- 
mation as  to  the  rates.  Whenever  rates  were  found 
in  the  general  statutes  they  have  been  entered  in  our 
compilation,  but  otherwise  the  mere  fact  that  a  given 
industry  is  taxable  is  all  that  has  been  entered.  It 
does  not  necessarily  follow  that  all  cities  in  a  state 
levy  all  the  license  taxes  which  they  are  empowered  to 
and  which  are  entered  in  this  list. 


The  license  taxes  are  levied  in  the  greatest  number 
of  cases  on  liquor  dealers;  next  in  frequency  are  amuse- 
ments of  one  sort  or  another,  especially  games  like 
billiards  and  bowling  alleys;  it.  is  also  common  to  levy 
such  taxes  on  businesses  which  are  not  adequately 
covered  by  the  general  property  tax.  Nevertheless, 
these  taxes  are  so  varied  in  character  as  not  to  be 
readily  subjected  to  classification,  and  a  simple  alpha- 
betical list  will  be  more  useful  than  any  classified  list. 

Particular  attention  is  called  to  the  fact  that,  owing 
to  the  great  variety  of  expressions  used,  certain  special 
or  particular  provisions  which  are  found  in  some  states 
are  included  in  or  covered  b}r  more  general  expressions 
in  others.  Thus,  for  example,  "tippling  houses  and 
dramshops,"  specifically  mentioned  in  several  states, 
are  taxable  under  other  names  in  many  other  states. 

Advertising  signs — Ohio. 

Amusements — Alabama,  Arkansas,  Colorado,  Minnesota,  Nevada,  New 
York,  North  Dakota,  South  Dakota,  and  Utah.  Places  of  amuse- 
ment: Colorado  and  Maine. 

Auctioneers — Not  over  $50,  Alabama;  Arizona;  $50  to  $100,  Arkansas; 
Colorado,  Connecticut,  Iowa;  $2,  minimum,  Massachusetts;  Michigan, 
Minnesota,  New  Jersey;  in  cities  over  1,000,000,  $250,  New  York; 
North  Dakota,  Oklahoma,  South  Dakota;  $10  to  $300  plus  a  per- 
centage, Wisconsin.  Auction  sales — 2J  per  cent,  Maine;  Ohio;  one- 
tenth  of  1  per  cent,  seven-eighths  to  state,  Rhode  Island. 

Automobiles — Ohio. 

Bagatelle  tables — Arizona  and  North  Dakota. 

Ballast  lighters  and  captains — $5,  $10,  New  York. 

Bankers— Oklahoma.     Banks — Utah. 

Bankrupt  stock — Wisconsin. 

Bicycle  sidepaths — 50  cents  to  $1,  Connecticut. 

Billiard  saloons — Iowa;  $10,  Maine;  $2,  minimum,  Massachusetts;  North 
Dakota,  South  Dakota;  not  limited,  Arizona;  Arkansas,  Colorado, 
Iowa;  outside  cities,  minimum  $50  to  township,  Kansas,  Michigan, 
Minnesota;  $20  for  first,  $10  each  for  others,  Missouri;  $10,  New 
Hampshire  (exempt  from  tax);  Ohio,  Oklahoma,  Rhode  Island; 
maximum  $25,  Washington;  Wyoming. 

Billposters — Iowa.     Billboards — New  Jersey  and  Ohio. 

Boarding  houses — Oklahoma. 

Bowling  alleys — Arizona,  Colorado,  Iowa;  outside  cities,  minimum  $50, 
Kansas;  $10,  Maine;  $2,  minimum,  Massachusetts;  Michigan,  Min- 
nesota; $10,  New  Hampshire  (exempt  from  tax);  Ohio,  Oklahoma, 
Rhode  Island,  South  Dakota,  Wyoming. 

Breeding  stock — Kentucky. 

Brewers — Arizona  and  Utah. 

Brokers — Arkansas,  Colorado,  North  Dakota,  Oklahoma,  and  Utah. 

Business  places — Colorado. 

Butchers — Arizona  and  Oklahoma.     Butcher  shops — Minnesota. 

Canal  boats — Villages  in  New  York. 

Carriages,  etc. — $l,.Massachusetts,  New  Hampshire,  and  Wyoming. 

Carters — Arizona. 

Carts  and  wagons — Not  to  exceed  $30,  Alabama. 

Cigars — South  Dakota.     Cigarettes — South  Dakota. 

Circuses — Arizona,  Iowa,  New  Jersey;  two-dav  shows,  $10  to  $100, 
Utah. 

Collector  of  birds — For  scientific  purposes,  $1,  Connecticut. 

Concerts — Arizona;  $25  if  50  cents  admission,  New  Jersey. 

Confectioners — Oklahoma. 

Contractors — Oklahoma. 

Corn  doctors — Arkansas. 

Dance  houses — Arkansas. 

Detectives,  private — $10,  Massachusetts;  $10,  Rhode  Island. 

Distillers — Arizona  and  Utah. 

Dogs  and  other  domestic  animals  not  included  in  list  of  property — 
Arkansas;  male  or  spayed  female  $1.15,  unspayed  female  $5.15, 
kennel  licenses  $50,  Connecticut;  $3  to  $10,  Indiana;  Kansas:  male 
$2,  female  $5,  for  breeding  five  in  number  $25,  over  five  $50,  Massa- 


TAXATION  AND  REVENUE  SYSTEMS. 


647 


chusetts :  males  and  spayed  females  $5,  Michigan :  Montana,  Nebraska, 
Nevada;  male  $2,  female  $5,  New  Hampshire;  New  Jersey;  $1  to 
$2,  New  York:  at  large,  North  Carolina  (also  swine,  horses, and  cat- 
tle): $2  male,  $3  female,  North  Dakota;  Ohio,  Pennsylvania;  male 
$1.15,  female  $5.15,  Rhode  Island;  Utah;  male  $1,  female  $4,  Ver- 
mont; maximum  $2,  Washington;  81  to  $10,  Wisconsin;  $1  to  $3, 
Wyoming. 

Dra\men — Arizona,  North  Dakota,  and  South  Dakota.  Drays:  Okla- 
homa and  Wyoming. 

Druggists — Oklahoma. 

Employment  agencies — $1 ,  Maine ;  Minnesota,  North  Dakota,  South 
Dakota,  and  Utah. 

Exhibitions  Arizona:  street  and  sparring,  Arkansas;  horoscrpic  and 
general,  Arkansas;  Connecticut,  Michigan;  $1  to  $300,  New  Hamp- 
shire: North  Dakota,  Ohio,  Rhode  Island,  South  Dakota,  Utah,  and 
Wyoming. 

Explosives,  vendors  of — Ohio. 

Express  companies — $2.50  to  $2.50,  Alabama;  Nevada,  North  Dakota, 
Oklahoma,  and  Utah.     Expressmen:  South  Dakota. 

Fames — Arizona,  Michigan,  New  York,  and  Ohio. 

Fortune  tellers — Arkansas. 

Franchises — Kentucky. 

Freight  lini  s— Nevada. 

Gaming  and  fraudulent  devices — Not  limited,  Arizona. 

Gaming  tables — Arkansas  and  Wyoming. 

(las  and  electric  companies — Nevada. 

Gift  enterprises — Arkansas. 

Hackmen — Arizona,  New  York,  North  Dakota,  South  Dakota,  and 
Utah.     Hacks:  Michigan,  Oklahoma,  and  Wyoming. 

Halls,  public — Villages  in  New  York. 

Hawkers — Arizona,  Arkansas,  Michigan,  North  Dakota,  Ohio,  Okla- 
homa, South  Dakota,  and  Utah. 

Horse  killing  establishments — Minimum  $1,  Massachusetts. 

Hospitals — Lock,  private  and  venereal,  Arkansas;  maternity,  Con- 
necticut. 

Hotels — Iowa. 

House  boats — Ohio. 

House  movers     Ohio. 

Hucksters — Ohio  and  Wyoming. 

Insurance  agents  Arizona;  foreign  companies,  maximum  $100, 
Missouri;  Oklahoma;  1  per  cent,  Wyoming. 

Insurance  companies — Arizona. 

Intelligence  offices — Arkansas;  $2  minimum,  Rhode  Island. 

Itinerant  doctors — Iowa. 

Junk  stores — Arizona;  $2  to  $10,  Connecticut;  New  Jersey.  Junk 
dealers:  Minimum,  $2,  Massachusetts  and  Iowa. 

Laundries — Utah. 

Liquor  dealers — $20  to  $500,  Alabama;  not  limited,  Arizona;  Georgia, 
Indiana,  Maryland;  $100  to  $150,  Oklahoma;  cities,  first  and  second 
class  $1,000,  third  class  $500,  other  $300,  boroughs  $150,  townships 
$75  (one-fifth  to  county),  Pennsylvania.  In  domestic  wines  (not 
producers):  Georgia.  Tippling  houses  and  dramshops:  Arkansas, 
Missouri,  and  Oklahoma. 

Liquor  license — General:  $1,000  if  drunk  on  premises,  $300  if  not 
drunk  on  premises,  Massachusetts:  one-half  of  county  liquor  tax, 
Michigan;  cities  over  10,000  inhabitants  $1,000,  others  $.500,  Min- 
nesota: 50  per  cent  plus  25  per  cent  of  state  tax,  Mississippi;  cities 
over  10,000  $1,000,  under  10,000  $500;  one-half  county  license 
money  for  retail  of  liquor  in  quantities  less  than  a  quart,  Nevada; 
granted  by  excise  commission,  New  Jersey;  cities  get  two-thirds  of 
state  license,  New  York;  $25,  North  Carolina:  wholesale  or  retail 
manufacturing  or  selling  $500  to  $1,000,  retail  only  $200  to  $400, 
Rhode  Island;  one-half  profits  from  liquor  dispensaries  to  city,  one- 
half  to  county,  South  Carolina:  same  privileges  as  county,  Texas; 
minimum  $400,  Utah;  $300  to  $1,000,  10  per  cent  to  state,  Wash- 
ington :  towns  $100,  cities  $200,  or  by  vote  of  citizens  may  be  increased 
to  $250  to  $400  in  towns  and  $3.50  or  $.500  in  cities,  Wisconsin; 
Wyoming.  Spirituous:  Towns  of  over  3,000  inhabitants  $450, 
others  $250,  Connecticut;  $150  to  $1 ,000,  Kentucky.     Ale,  beer,  and 


wine  only:  $200,  Connecticut;  $250  if  drunk  on  the  premises,  other- 
wise $150,  Massachusetts.  Malt  and  cider  only,  $250,  Massachusetts. 
Hotels,  $250,  Connecticut;  wholesale  grocers,  $250,  Connecticut; 
druggists,  towns  5,000  $12,  less  than  5,000  $10,  Connecticut;  $1, 
Massachusetts.  Distilled  liquors  and  alcohol:  $50,  Connecticut; 
medicinal  only,  $500,  Rhode  Island. 

Livery  stables — Arizona. 

Lodging  houses — $10,  Connecticut.   • 

Lumber  yards — Arizona,  North  Dakota. 

Lung  testers — Arkansas. 

Magnifying  glasses — Arkansas. 

Maternity  hospitals — Michigan. 

Menageries — Arkansas,  Iowa;  $10  to  $50,  Vermont. 

Merchants — Not  over  $25,  Alabama;  retail  for  short  period,  $50  per 
week  minimum,  Minnesota;  Oklahoma;  retail  transient,  $25  to  $2C0 
per  month,  Pennsylvania;  (storekeepers),  Utah. 

Mei Ty-go-iounds — Not  over  $50,  Maine. 

Milk  dealers — 50  cents,  Massachusetts;  New  Jersey. 

Money  changers — Arizona,  Arkansas,  Utah,  and  North  Dakota. 

Muscle  developers — Arkansas. 

Museums — Arkansas. 

Omnibuses — New  Jersey.     Omnibus  drivers:  North  Dakota. 

Ordinaries — Arkansas,  New  York,  North  Dakota,  South  Dakota,  and 
Utah. 

Oyster  digging — $2.50,  Massachusetts. 

Paints  and  chemicals — $1,  Massachusetts. 

Pawnbrokers — Arizona,  Arkansas;  $10  to  $50,  Connecticut;  Georgia; 
$10  to  $100,  Indiana;  Iowa;  $50,  Massachusetts;  Minnesota;  $50  to 
$100,  Nebraska;  $,500,  New  York;  North  Dakota,  Oklahoma;  $50, 
Rhode  Island;  South  Dakota,  Utah,  Wyoming. 

Peddlers — Arizona,  Arkansas,  Colorado;  at  same  rate  as  county, 
Indiana;  Iowa,  Maryland;  different  rates  for  different  sized  towns, 
$3  to  $25,  Massachusetts;  Michigan;  $5  to  $10,  New  Hampshire; 
New  York,  North  Dakota,  Ohio,  Oklahoma,  South  Dakota,  Utah, 
Wisconsin,  Wyoming. 

Picnic  groves — $2  minimum,  Massachusetts. 

Pistol  galleries — Arkansas. 

Playing  cards — Per  pack,  not  over  $1. 

Plumbers — Iowa;  master  $2,  journeymen  50  cents,  Massachusetts; 
fee  for  examination,  Michigan;  50  cents,  New  Hampshire;  Ohio. 

Porters  or  runners  for  cars  or  public  houses — Arizona  and  North  Dakota. 

Privileges — 50  per  cent  state  tax  minimum  (telegraph,  express,  and 
sleeping  cars  excepted) ,  Minnesota. 

Professions,  trades,  and  callings,  generally — Arizona,  Colorado,  Indiana; 
cities  first  class,  other  classes  only  specific  ones,  Kansas;  Kentucky; 
excepting  ministers,  teachers,  priests,  lawyers,  and  doctors,  Missouri; 
Nebraska,  Nevada,  Oregon;  certain  callings  by  cities  third  class, 
maximum  $100,  Pennsylvania;  excepting  t  achers  and  ministers  at 
a  rate  to  be  determined  by  gross  income  or  upon  capital  invested, 
North  Carolina;  one-half  state  rate  with  certain  exemptions,  also 
same  privileges  as  county,  Texas;  Washington,  Wyoming. 

Real  estate  agents — Oklahoma. 

Restaurants  and  eating  houses — Iowa,  Michigan,  Oklahoma,  and  Utah. 

Saloons — Local  option,  Arkansas;  Oklahoma. 

Scales,  public — North  Dakota. 

Scalpers,  ticket — North  Dakota,  South  Dakota,  and  Utah. 

Scavengers—  Iowa. 

Secondhand  or  junk  shops — Arizona;  $2  to  $10,  Connecticut. 

Shooting  galleries — Iowa  and  Ohio. 

Shows — Alabama,  Arkansas,  Iowa,  Maine,  Michigan,  Minnesota;  $100 
to  $300,  New  Hampshire;  North  Dakota,  Ohio,  Rhode  Island,  South 
Dakota,  Utah,  and  Wyoming.     Horse:  Arkansas.' 

Skating  rinks — $2  minimum,  Massachusetts;  New  Jersey. 

Slaughterhouses — $1  minimum,  Massachusetts. 

Soft  drinks — South  Dakota. 

Solicitors  for  passengers  or  baggage — Michigan. 

Steamboats — $1  minimum,  Massachusetts. 

Surveyor  of  lumber — $1  minimum,  Massachusetts. 

Taverns — Michigan,  Minnesota,  Ohio,  and  Oklahoma. 


648 


WEALTH,  DEBT,  AND  TAXATION. 


Taxidermists — $5,  Maine. 

Telegraph  companies — Alabama  and  Nevada. 

Telephone  companies,  long  distance — Alabama. 

Theaters — Alabama,    Arkansas,    Iowa;    $350,    New    Jersey;     North 

Dakota,  Ohio,  Oklahoma,  South  Dakota,  Utah. 
Toll  bridges — Michigan  and  New  York. 
Vehicles  for  hire — Ohio,  Oklahoma,  Virginia,  and  Wyoming. 
Vendors,  itinerant — $25,  Connecticut;  Maine,  Michigan;  2  per  cent  of 

value  of  goods,  New  Hampshire;  Ohio,  Rhode  Island,  Vermont. 


Water  companies — $50  to  $400,  Montana. 

Wharf  boats — Michigan. 

Wharves  and  fish  weirs — $5,  Maine. 

School  Revenues. 

For  the  sources  from  which  the  revenues  for  the 
support  of  schools  are  drawn,  see  under  the  several 
states. 


ALABAMA.1 


The  revenue  laws  of  Alabama  have  undergone  ex- 
tensive revisions  in  the  past  few  years,  and  these  were 
not  fully  completed  at  the  time  to  which  the  census 
statistics  refer.  In  1897,  in  addition  to  the  enact- 
ment of  the  state  tax  commission  law,  known  as  the 
back-tax  commission  law,  a  number  of  other  changes 
were  made  in  the  tax  laws  of  the  code  of  1896.  Many 
more  changes  were  made  at  the  legislative  session  of 
1898-99  and  that  of  1900-1901.  In  1901  a  new  consti- 
tution was  adopted  which  necessitated  some  changes 
in  the  revenue  laws,  and  in  1903  the  statutes  were 
revised  to  conform  to  the  new  constitutional  require- 
ments. An  act,  approved  February  23,  1899,  with 
reference  to  licenses,  having  been  declared  uncon- 
stitutional by  the  supreme  court,  moneys  collected 
thereunder  were  refunded  by  act  of  December  13, 1900, 
and  a  new  law  covering  this  subject  was  passed  in  1901 . 

As  these  changes  in  the  law  materially  affect  the 
interpretation  of  the  census  statistics,  it  is  necessary 
to  set  them  forth  in  some  detail. 

A  peculiarity  of  the  Alabama  revenue  administra- 
tion is  the  so-called  back-tax  commission,  established 
in  1897.  A  state  tax  commissioner,  who  is  appointed 
by  the  governor  for  a  term  of  four  years,  has  the  power 
to  appoint  one  tax  commissioner  in  every  county  (as 
the  statute  was  amended  in  1899)  for  a  term  of  four 
years.  It  is  the  duty  of  these  commissioners  to  discover 
(and  to  aid  the  revenue  officers  in  collecting)  "escaped 
and  delinquent  back  taxes,  and  licenses."  They  are 
to  enforce  the  collection  of  any  dues  to  the  state  that 
have  been  evaded  within  the  five  years  previous  to  | 
the  date  of  discovery.  The  state  tax  commissioner  j 
is  now  paid  a  salary,  but  the  county  tax  commission- 
ers are  compensated  by  a  penalty  of  10  per  cent  of  the 

1  This  compilation  is  derived  mainly  from  the  following  sources: 

"The  Code  of  Alabama,  1896,"  approved  February  16,  1897,  prepared 
by  Wm.  L.  Martin,  commissioner.  Published  by  the  Foote  &  Davies 
Company,  Atlanta,  Ga.,  1897.  This  omitted  the  changes  made  in 
revenue  laws  by  the  session  of  1896-97. 

An  act  to  amend  the  revenue  laws  of  the  state,  approved  February 
21,  1899,  and  given  in  the  Session  Laws  1898-99,  pages  164  to  203. 
Declared  unconstitutional. 

An  act  to  further  amend  the  revenue  laws  of  the  state,  approved 
March  5,  1901,  given  in  the  Session  Laws  1900-1901,  pages  210  to  250. 

The  new  constitution  of  Alabama,  1901. 

The  Revenue  Code  of  the  State  of  Alabama,  1903,  published  by  the 
auditor:  The  Brown  Printing  Company,  Montgomery,  Ala.,  1903.  This 
includes  the  amendments  made  at  the  session  of  1902-3. 


amount  of  taxes  secured  through  their  services,  which 
is  levied  in  addition  to  the  back  taxes  found  due. 
The  assessors  also  have  power  to  assess  back  taxes 
evaded  in  any  one  of  five  years  previous  to  date  of  dis- 
covery, and  they  receive  a  commission  of  5  per  cent, 
assessed  as  a  penalty. 

Another  peculiarity  of  the  Alabama  system  is  the 
payment  of  the  assessors  and  tax  collectors  by  per- 
centage commissions  on  the  amount  of  taxes  assessed 
and  collected,  and  by  fees  for  certain  other  services 
performed  by  the  assessors  or  tax  collectors. 

Alabama  has  three  principal  sources  of  revenue: 
(1)  The  general  property  tax,  (2)  the  poll  tax,  and  (3) 
the  business  taxes  and  licenses. 

The  counties  and  the  incorporated  towns  and  cities 
are  the  only  subdivisions  of  the  state  with  independ- 
ent powers  of  taxation.  Other  districts,  practically 
all  of  which  are  school  districts,  receive  their  funds 
from  the  state  or  county  treasury. 

CONSTITUTIONAL    PROVISIONS. 

ARTICLE    XI. 

Sec.  211.  All  taxes  levied  on  property  in  this  state  shall  be  assessed 
in  exact  proportion  to  the  value  of  such  property,  but  no  tax  shall  be 
Maened  upon  any  debt  for  rent  or  hire  of  real  or  personal  property 
while  owned  by  the  landlord  or  hired  during  the  current  year  of  such 
rental  or  hire,  if  such  real  or  personal  p-operty  be  assessed  at  its  full 
value. 

Sec.  212.  The  power  to  levy  taxes  shall  not  be  delegated  to  individ- 
uals or  private  corporations  or  associations. 

Sec.  213.  (Refers  to  public  debt.) 

Sec.  214.  The  legislature  shall  not  have  the  power  to  levy  in  any  one 
year  a  greater  rate  of  taxation  than  sixty-five  one-hundredths  of  one 
per  centum  on  the  value  of  the  taxable  property  within  this  state. 

Sec.  215.  No  county  in  this  state  shall  be  authorized  to  'evy  a  greater 
rate  of  taxation  in  any  one  year  on  the  value  of  taxable  property  therein 
than  one-half  of  one  per  centum;  provided,  that  to  pay  debts  existing 
on  the  sixth  day  of  December,  1875,  an  additional  rate  of  one-fourth  of 
one  per  centum  may  be  levied  and  collected,  which  shall  be  appropri- 
ated exclusively  to  the  payment  of  such  debts  and  the  interest  thereon; 
provided,  further,  that  to  pay  any  debt  or  liability  now  existing  against 
any  county,  incurred  for  the  erection,  const ruction,  or  maintenance  of 
the  necessary  public  buildings  or  bridges,  or  that  may  hereafter  be  cre- 
ated for  the  erection  of  necessary  public  buildings,  bridges,  or  roads, 
any  county  may  levy  and  collect  such  special  taxes,  not  to  exceed  one- 
fourth  of  one  per  centum,  as  may  have  been  or  may  hereafter  be  author- 
ized by  law,  which  taxes  so  levied  and  collected  shall  be  applied  exclu- 
sively to  the  purposes  for  which  the  same  were  so  levied  and  collected. 


TAXATION  AND  REVENUE  SYSTEMS— ALABAMA. 


649 


Sec.  216.  (This  section  limits  the  rate  in  cities,  towns,  villages,  and 
other  municipal  corporations  to  J  per  cent  for  current  purposes;  1  per 
cent  for  debts  existing  December  6,  1875;  for  the  city  of  Mobile,  }  per 
cent  for  current  purposes  and  J  per  cent  for  debts  existing  December  6, 
1875;  for  cities  of  Birmingham,  Huntsville,  and  Bessemer,  and  the  town 
of  Andalusia,  A  per  cent  for  current  purposes  and  $  per  cent  for  debts 
existing  at  the  time  of  adoption  of  this  constitution;  for  the  city  of 
Montgomery,  |  per  cent  for  general  purposes  and  J  per  cent  for  debts, 
public  schools,  and  public  conveniences:  for  Troy,  Attalla,  Gadsden, 
Woodlawn,  Brewton,  Pratt  City,  Ensley,  Wylam,  and  Avondale,  an 
additional  tax  not  to  exceed  i  per  cent;  for  Decatur,  New  Decatur,  and 
Cullman,  an  additional  ,;,  percent,  to  be  applied,  in  Decatur,  for  public 
schools,  public  school  buildings,  and  public  improvements,  and  in  New 
Decatur  and  Cullman  exclusively  for  educational  purposes,  to  be  ex- 
pended by  the  school  trustees:  but  the  additional  tax  in  Troy  and  the 
cities  named  thereafter  above  must  be  sanctioned  by  majority  vote  at 
special  election.) 

Sir.  217.  The  property  of  private  corporations,  associations,  and 
individuals  of  this  state  shall  forever  be  taxed  at  the.  same  rate;  pro- 
vided this  section  shall  not  apply  to  institutions  devoted  exclusively  to 
religious,  educational,  or  charitable  purposes. 

Sec.  218.  The  legislature  shall  not  have  the  power  to  require  counties 
or  other  municipal  corporations  to  pay  any  charges  which  are  now  pay- 
able out  of  the  state  treasury. 

Sec  219.  The  legislature  may  levy  a  tax  of  not  more  than  two  and 
one-half  per  centum  of  the  value  of  all  estates,  real  and  personal,  money, 
public  and  private  securities  of  every  kind  in  this  state  passing  from 
any  person  who  may  die  seized  and  possessed  thereof,  or  any  part  of 
such  estate,  money,  or  securities,  or  interest  therein  transferred  by  the 
intestate  laws  of  this  state,  or  by  will, deed, grant,  bargain,  sale,  or  gift, 
made  or  intended  to  take  effect  in  possession  after  death  of  the  grantor, 
devisor,  or  donor,  to  any  person  or  persons,  bodies  politic  or  corporate, 
in  trust  or  otherwise,  other  than  to  or  for  the  use  of  the  father,  mother, 
husband,  wife,  brothers,  sisters,  children,  or  lineal  descendants  of  the 
grantor,  devisor,  donor,  or  intestate. 

ARTICLE    XII. 

Sec  221.  The  legislature  shall  not  enact  any  law  which  will  permit 
any  person,  firm,  corporation,  or  association  to  pay  a  privilege,  license, 
or  other  tax  to  the  state  of  Alabama  and  relieve  him  or  it  from  the  pay- 
ment of  all  other  privilege  and  license  taxes  in  the  state. 

Sec  229.  *  *  *  The  legislature  shall,  by  general  law,  provide 
for  the  payment  to  the  state  of  Alabama  of  a  franchise  tax  by  corpora- 
tions organized  under  the  laws  of  this  state,  which  shall  be  in  proportion 
to  the  amount  of  capital  stock:  but  strictly  benevolent,  educational,  or 
religious  corporations  shall  not  be  required  to  pay  such  a  tax.     *     *     * 

ARTICLE    XIV. 

Sec  259.  All  poll  taxes  collected  in  this  state  shall  lie  applied  to  the 
support  of  the  public  schools  in  the  respective  counties  where  collected. 

Sec  260.  The  income  arising  from  the  sixteenth  section  trust  fund, 
the  surplus  revenue  fund,  until  it  is  called  for  by  the  United  States  Gov- 
ernment, and  the  funds  enumerated  in  sections  257  (this  section  makes 
the  principal  derived  from  the  sale  of  certain  lands  a  trust  fund)  and 
258  (this  section  appropriates  donations  and  escheats  to  the  school 
funds)  of  this  constitution,  together  with  a  special  annual  tax  of  thirty 
cents  on  each  one  hundred  dollars  of  taxable  property  in  this  state, 
which  the  legislature  shall  levjT,  shall  be  applied  to  the  support  and 
maintenance  of  the  public  schools,  and  it  shall  be  the  duty  of  the  legis- 
lature to  increase  the  public  school  fund  from  time  to  time  as  the  neces- 
sity therefor  and  the  condition  of  the  treasury  and  the  resources  of  the 
state  may  justify:  Provided,  That  nothing  herein  contained  shall  be  so 
construed  as  to  authorize  the  legislature  to  lev}'  in  any  one  year  a  greater 
rate  of  state  taxation  for  all  purposes,  including  schools,  than  sixty-five 
cents  on  each  one  hundred  dollars'  worth  of  taxable  property:  And  pro- 
vided further ,  That  nothing  herein  contained  shall  prevent  the  legisla- 


ture from  first  providing  for  the  payment  of  the  bonded  indebtedness 
of  the  state  and  interest  thereon  out  of  all  the  revenues  of  the  state. 

Sec  269.  The  several  counties  in  this  state  shall  have  power  to  levy  and 
collect  a  special  tax  not  exceeding  ten  cents  on  each  one  hundred  dollars 
of  taxable  property  in  such  counties  for  the  support  of  public  schools: 
Provided,  That  the  rate  of  such  tax,  the  time  it  is  to  continue,  and  the 
purpose  thereof,  shall  have  been  first  submitted  to  a  vote  of  the  qualified 
electors  of  the  county,  and  voted  for  by  three-fifths  of  those  voting  at 
such  election;  but  the  rate  of  such  special  tax  shall  not  increase  the  rate 
of  taxation,  state  and  county  combined,  in  any  one  year,  to  more  than 
one  dollar  and  twenty-five  cents  on  each  one  hundred  dollars  of  taxable 
property;  excluding,  however,  all  special  county  taxes  for  public  build- 
ings, roads,  bridges,  and  the  payment  of  debts  existing  at  the  time  of  the 
ratification  of  the  constitution  of  1875.     *     *     * 

ARTICLE    IV. 

Sec  91.  The  legislature  shall  not  tax  the  property,  real  or  personal, 
of  the  state,  counties,  or  other  municipal  corporations,  or  cemeteries :  nor 
lots  in  incorporated  cities  or  towns,  or  within  one  mile  of  any  city  or 
town  to  the  extent  of  one  acre,  nor  lots  one  mile  or  more  distant  from 
such  cities  or  towns  to  the  extent  of  five  acres,  with  the  buildings 
thereon,  when  same  are  used  exclusively  for  religious  worship,  for 
schools,  or  for  purposes  purely  charitable. 

ARTICLE   VIII. 

Sec  194.  The  poll  tax  mentioned  in  this  article  (in  section  178,  which 
makes  the  payment  of  the  poll  tax  prerequisite  to  the  exercise  of  the 
electoral  franchise)  shall  be  one  dollar  and  fifty  cents  upon  each  male 
inhabitant  of  the  state  over  the  age  of  twenty-one  years,  and  under  the 
age  of  forty-five  years,  who  would  not  now  be  exempt  by  law,  but  the 
legislature  is  authorized  to  increase  the  maximum  age  fixed  in  this  sec- 
tion to  not  more  than  sixty^rears.  Such  poll  tax  shall  become  due  and 
payable  on  the  first  day  of  October  in  each  year,  and  become  delin- 
quent on  the  first  day  of  the  next  succeeding  February,  but  no  legal 
process  nor  any  fee  or  commission  shall  be  allowed  for  the  collection 
thereof.  The  tax  collector  shall  make  returns  of  poll  tax  collections 
separate  from  other  collections. 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  The  county  tax  assessors,  one  in  each  county  elected  for  a  term  of 
four  years,  whose  compensation  consists,  first,  of  commissions  on  state 
and  county  taxes  assessed  by  them,  varying  with  the  amount  of  taxes 
assessed  in  each  county  from  1  per  cent  to  8  per  cent;  and,  second,  of 
fees  paid  by  the  persons  assessed,  amounting  to  50  cents  for  the  assess- 
ment and  25  cents  each  for  any  extra  services,  such  as  sending  notices, 
etc. 

(2)  The  judge  of  probate  in  each  county,  elected  for  six  years,  who 
makes  abstracts  for  the  state  auditor  and  for  the  collector,  and  who 
collects  license  taxes. 

(3)  The  court  of  county  commissioners,  consisting  of  four  members 
elected  for  four  years,  and  the  judge  of  probate,  constitute  a  board  of 
review. 

(4)  The  county  tax  collector,  elected  for  four  years. 

(5)  The  state  auditor,  elected  for  four  years. 

(6)  The  state  board  of  assessors  for  railroad,  telegraph,  and  telephone 
companies,  composed  of  the  governor,  the  secretary  of  state,  the  auditor, 
and  the  treasurer,  together  with  the  attorney-general,  who  acts  as 
adviser  and  decides  any  tie  vote. 

(7)  The  state  tax  commissioner,  appointed  for  four  years  by  the  gov- 
ernor, and  the  district  (or  county)  tax  commissioners,  appointed  for  four 
years  by  the  state  tax  commissioner  and  commonly  known  as  the  "  back- 
tax  commissioners,"  whose  functions  are  described  in  the  introduc- 
tory statement. 


650 


WEALTH,  DEBT,  AND  TAXATION. 


State  Revenues. 


a.   TAXES. 


I.   The  general  property  tax. 
1.  Base — 
a.   The  property  included  and  exempt. — The  statutes 
enumerate  14  different  classes  of  property  which  are 
"subjects"  of  taxation.     The  list  is  so  comprehensive 
as  to  include  all  real  and  personal  property.     The 
enumerated  items  are:  (1)  Lands  and  improvements 
thereon;  (2)  wharves  and  wharf  boats,  landings,  cot- 
ton pickeries,  cottonseed-oil  mills,  compressors,  grain 
elevators,  toll  bridges,  ferries  and  turnpikes,  and  all 
passes,  channels,  or  canals  where  tolls  are  charged,  and 
street   railroads,  printing  presses  and   materials;  (3) 
steamboats,  vessels,  and  water  craft,  excepting  such  as 
are  engaged   in  foreign  commerce;    (4)    the   average 
amount  of  all  stocks  of  goods,  wares,  merchandise  on 
hand  during  the  year;    (5)   all  household  furniture, 
libraries,  jewelry,  plate  and  silverware,  etc.,  wagons, 
etc.,  office  furniture,   tools,   arms,   cattle,  and  other 
domestic  animals;  (6)  money  hoarded;  (7)  all  moneyed 
capital,  that  is  all  money  lent,  solvent  credits,  or  credits 
of  value  (in  1903  the  section  of  the  code  containing 
provision  (7)  was  changed  as  to  mortgages  so  as  to  pro- 
vide for  a  "privilege"  tax  in  addition  to  recording  fee 
for  mortgages  in  lieu  of  all  other  taxes) ;  (8)  shares  in 
incorporated  banks;  (9)  shares  in  corporations,  other 
than  railroad,  telegraph  (long  distance  telephone  added 
in  1903),  building  and  loan  associations,  and  banks  or 
banking  associations;  (10)  real  and  personal  property 
of  water  companies,  electric  light   and   power  com- 
panies, gas  companies,  furnaces,  rolling  mills,  mines, 
quarries,  or   manufacturing   establishments;    (11)  all 
investments  in  bonds;    (12)  the  roadbed,  track,  and 
other  property,  real  and  personal,  of  railroads,  and  all 
tramroads,  pole  roads,  canals,  ditches,  and  channels, 
etc.;   (13)  all  dividends  declared  or  earned,  and  not 
divided,  by  corporations;  (14)  all  other  property.     For 
purposes  of  taxation  the  gross  amount  of  sales  at 
auction;   the   gross   amount   of   commissions   of  any 
factor,  broker,  etc.;  the  gross  receipts  of  all  cotton 
pickeries,  warehouses,  or  other  storage  places;  and  the 
gross  receipts  of  toll  bridges  and  ferries,  canals,  ditches, 
channels,  passes,  tramroads,  and   pole  roads,  and  of 
telephone  companies  except  long  distance  telephone 
companies,  are  also  treated  as  property.     (Since  1901. 
Formerly  this  list  included  also  gas  works,  electric 
light  companies,  and  street  railroads.) 

(1)  "  Real  property"  is  held  to  mean  not  only  land,  city,  town,  and 
village  lots,  but  also  all  things  thereunto  pertaining,  and  all  structures 
and  other  things  so  annexed  or  attached  thereto  as  to  pass  to  a  vendee 
by  the  conveyance  of  the  land  or  lot. 

(2)  "  Personal  property  "  is  held  to  include  all  things,  other  than  real 
property,  which  have  any  pecuniary  value,  and  moneys,  credits,  and 
investments  in  any  bonds,  stocks,  joint-stock  companies,  or  otherwise. 
Credits  include  mortgages. 


'  (3)  Exempt  from  taxation,  besides  public  property,  are  bonds  of  Ala- 
bama; cemeteries;  lots  and  buildings  used  for  religious  worship,  educa- 
tional, or  purely  charitable  purposes;  all  school  furniture  and  other 
property  used  exclusively  for  public  school  purposes,  (the  word  "  public  " 
was  dropped  in  1903),  and  $25,000  for  each  public  agricultural  associa- 
tion; property  of  literary  and  scientific  institutions;  libraries  of  ministers 
of  the  gospel;  all  libraries  not  professional,  and  religious  books  kept  for 
sale  by  ministers  or  colporteurs;  deaf-mutes,  insane,  and  blind  persons, 
to  the  extent  of  $1,000;  all  family  portraits;  household  furniture  to  $150; 
one  yoke  of  oxen;  one  cart  or  wagon;  two  cows  and  calves;  20  head  of 
hogs;  10  of  sheep;  all  poultry;  all  cotton  and  other  agricultural  crops 
grown  in  the  preceding  year,  and  all  manufactured  articles  remaining  in 
hands  of  producer  or  manufacturer;  provisions  and  seed;  all  wearing 
apparel;  all  looms  and  spinning  wheels  kept  for  use  of  family;  $25  worth 
of  farming  tools  or  mechanic's  tools;  one  sewing  machine  to  each  family, 
when  taxable  property  does  not  exceed  $250.  (In  1899  the  exemption 
of  agricultural  products  was  modified  so  that  cotton  and  pig  iron  were 
exempt  for  twelve  months  from  time  of  production,  and  thereafter  to  pay 
a  special  tax.  In  1903  the  special  tax  was  abolished.)  To  encourage 
cotton  factories  it  was  enacted  in  1893  that  the  county  authorities  might 
grant  them  exemption  for  five  years;  in  1901  shipbuilding  plants  were 
given  the  same  opportunity,  and  it  was  further  provided  that  cotton 
factories  established  since  1897  and  in  which  $50,000  had  been  invested 
prior  to  1902  should  be  exempt  from  all  taxes  for  ten  years,  and  ship- 

|    building  plants  investing  $500,000  within  five  years  from  1901  were  also 

!    exempted  from  all  taxes  for  ten  years. 

b.  Assessment. — There  is  but  one  assessment  list  for 
;  state  and  county  purposes.  The  assessment  is  made 
by  the  county  assessor  on  the  basis  of  sworn  state- 
ments furnished  by  the  taxpayers.  The  assessment 
of  all  property  is  made  annually  and  refers  to  the  1st 
|  day  of  October;  it  is  made  up  between  that  date  and 
the  1st  of  February  with  a  "  supplementary"  assess- 
ment up  to  the  last  Monday  in  May.  Property  is  to  be 
valued  at  its  actual  cash  value.  When  possible,  the 
assessor  is  to  interrogate  the  taxpayer  personally. 
The  penalty  for  failure  to  make  a  return  to  the 
assessor  is,  in  the  case  of  private  persons,  5  per  cent 
added  to  the  assessment  made  by  the  assessor;  in  the 
case  of  railroad,  telegraph,  and  long  distance  tele- 
phone companies,  and  of  corporations  whose  gross 
receipts  are  taxable  as  property,  the  penalty  is  a  50 
per  cent  increase.  Besides  entering  the  valuation,  the 
assessor  is  required  to  enter  separately  in  the  assess- 
ment book  the  amount  of  state,  county,  and  special 
taxes  on  the  aggregate  of  real  and  personal  property. 
The  assessor  turns  over  the  assessment  book  to  the 
judge  of  probate,  who  makes  the  abstracts  for  the  state 
auditor  and  the  county  collector.  If  the  assessor  dis- 
covers property  that  has  escaped  taxation  in  any 
assessment  within  five  years  previous,  he  assesses  the 
back  taxes  against  that  property  and  for  this  receives 
a  special  commission.  There  is  also  a  tax  commis- 
sioner in  each  county  who,  under  the  supervision  of 
the  state  tax  commissioner,  is  authorized  to  assess 
back  taxes. 

Other  provisions  in  regard  to  assessment  were: 

In  valuing  real  estate  the  location,  whether  vacant  or  lying  idle, 
or  occupied  and  in  use,  and,  if  occupied  and  in  use,  the  rent  derived 
therefrom,  is  to  be  taken  into  consideration. 


TAXATION  AND  REVENUE  SYSTEMS— ALABAMA. 


651 


Railroad,  telegraph,  and  long  distance  telephone  companies  are 
assessed  on  all  property,  not  strictly  localized,  by  the  state  board  of 
assessors,  and  the  assessment  so  made  is  apportioned  to  each  county 
on  the  basis  of  mill  age  in  such  county. 

The  valuation  of  railroad  property  not  local  in  character  made,  by 
the  state  board  of  assessors  is  had  "exclusively  upon  the  consideration 
of  what  a  clear  fee-simple  title  thereto  would  sell  for  under  the  conditions 
under  which  that  character  of  property  is  most  usually  sold." 

The  tax  assessor  is  entitled  to  receive  out  of  the  first  moneys  col- 
lected for  the  state  the  following  commissions  on  state  taxes:  In  counties 
where  the  slate  taxes  assessed  do  not  exceed  $12,000  the  rate  of  com- 
mission shall  lie  8  per  cent  on  tlie  first  81. (XX),  4  per  cent  on  the  second 
$1,000,  and  2  per  cent  on  the  remainder:  in  counties  where  the  state 
taxes  assessed  exceed  $12,000,  the  commissions  shall  l>c  the  same  up  to 
$12.fXX),  1 .1  per  cent  up  to  $60,000,  and  1  per  cent  on  the  remainder.  He 
has  the  same  commissions  on  county  taxes.  He  gets  5  percent  on 
back  taxes.  Also,  the  tax  assessor  receives  a  fee  of  50  cents  for  making 
the  demand  on  the  taxpayer  for  his  list  of  assessment,  to  be  charged  to 
the  taxpayer  and  collected  with  the  taxes,  and  also  a  fee  of  2.5  cents  for 
the  issuance  anil  service  by  the  tax  assessor  of  each  notice  to  a  tax- 
payer of  an  increase  in  his  property  valuation  by  the  court  of  county 
commissioners,  to  be  charged  against  the  taxpayer  if  the  increase  is 
made  final,  otherwise  canceled. 

c.  Equalization. — There  is  no  equalization,  strictly 
interpreted,  of  any  part  of  the  assessment  in  Alabama, 
but  the  court  of  county  commissioners  sits  as  a  board 
of  review  and  hears  and  adjudicates  all  objections  to 
the  assessment,  treating  them  as  regular  cases  on  the 
docket  to  be  tried  in  the  name  of  the  state  of  Alabama 
as  plaintiff  and  the  taxpayer  as  defendant.  An  appeal 
from  its  decision  may  be  taken  to  the  circuit  court. 

There  is  no  state  board  of  equalization  and  no 
equalization  between  counties. 

2.  Rate— 

The  constitution  of  1875  limited  the  rate  which 
might  be  levied  for  state  purposes  to  75  cents  on  each 
$100  of  assessed  valuation;  that  of  1901  reduced  the 
rate  to  65  cents.  The  annual  rate  is  not  determined 
by  apportionment,  but  the  code  (subject  to  amendment 
at  each  session)  fixes  the  rate  in  round  numbers,  and 
the  amount  so  raised  is  apportioned  for  the  various 
purposes.  This  system  has  resulted  frequently  in  a 
deficit. 

In  1897  the  rate  was  fixed  for  all  purposes  in  general  at  55  cents;  in 
1899,  10  cents  was  added  specifically  for  schools;  and  in  1903  the  total 
tate  of  05  cents  was  divided  as  follows:  30  cents  for  schools,  10  cents 
for  the  relief  of  needy  Confederate  soldiers  and  sailors,  and  25  cents  for 
general  purposes. 

3.  Collection — 

Taxes  are  collected  by  the  county  tax  collector,  who 
is  paid  for  his  services  by  commissions  out  of  the  taxes 
collected,  similar  to  those  allowed  the  assessor,  and  is 
allowed  small  fees,  paid  by  the  taxpayer,  for  collecting 
delinquent  taxes.  Taxes  are  due  and  payable  after 
the  1st  of  October  and  become  delinquent  on  the  1st 
.day  of  January.  The  collector  attends  in  each  elec- 
tion precinct  twice  each  year  and  makes  appointments 
for  the  payment  of  taxes.  Except  for  the  collectors' 
fees,  costs,  and  interest  there  are  no  penalties  for 
delinquency.  Delinquent  taxes  may  be  collected  by 
seizure  and  sale  of  personal  property,  by  garnishment, 
or  by  sale  of  lands  under  action  by  the  court  of  county 
commissioners. 


II.  Poll  tax. 

The  state  poll  tax  (see  section  194  of  Article  VIII 
of  the. Constitution),  less  expenses  of  levy  and  collec- 
tion, is  paid  into  the  state  treasury  and  by  it  disbursed 
to  the  county  to  be  expended  for  the  schools  within 
the  county  of  its  collection 

1.  Base — 

Every  male  inhabitant  from  21  to  45  years  of  age 
not  exempt  by  law.  Those  exempt  are:  Township 
trustees  (in  charge  of  schools),  all  members  Alabama 
National  Guard,  and  all  persons  permanently  disabled 
whose  taxable  property  does  not  exceed  $500,  deaf- 
mutes,  insane,  and  blind. 

2.  /^re- 
Fixed  by  the  constitution  at  $1.50  per  annum. 

3.  Collection — 

Collected  by  county  tax  collectors  under  supervision 
of  state  auditor  and  paid  into  the  state  treasury. 

4.  Apportionment — 

Apportioned  by  the  state  superintendent  of  educa- 
tion; each  county  is  entitled  to  all  the  poll  taxes  col- 
lected within  its  bounds,  and  each  township  or  school 
district  and  each  race  therein,  to  poll  taxes  collected 
therefrom. 

III.  Inheritance  tax. 

There  is,  at  present,  no  inheritance  tax  in  Alabama, 
but  the  constitution  of  1901  provides  that  the  legisla- 
ture may  levy  such  a  tax.     (Article  XI,  section  219.) 

IV.  Corporation  taxes. 

Corporations  without  any  exception  are  covered,  as 
are  private  individuals,  by  the  general  property  tax, 
by  the  license  taxes,  or  by  both,  while  certain  of  them 
are  also  subject  to  special  privilege  taxes.  The  con- 
stitution of  1901  (Article  XII,  sections  229  and  232) 
provides  that  the  legislature  shall  by  general  law  pro- 
vide for  the  payment  of  a  franchise  tax. 

The  code  of  1896  imposes  a  franchise  tax  paid  to  the  state  of  $25  on 
every  increase  of  $50,000  in  capital  stock  up  to  $1,000,000;  from 
$1,000,000  to  $5,000,000  this  tax  is  $500;  and  over  $5,000,000,  $1,000. 
For  fees  paid  before  a  commission  is  issued  to  a  corporation,  see  all 
fees  under  B. 

The  following  privilege  or  license  taxes  on  corpora- 
tions are  notable  and  different  in  character  from  the 
other  licenses: 

Insurance  companies,  foreign  and  domestic,  fire  and  life,  pay  a  tax 
of  $1  per  annum  on  each  $100  of  gross  premiums  received  in  the  state, 
but  domestic  companies  taxed  on  their  property  may  deduct  the  taxes 
so  paid.     Fraternal  organizations  are  exempt. 

Express  companies  doing  business  between  points  wholly  in  the 
state  pay  a  license  or  privilege  tax  of  $4,000  per  annum. 

Sleeping  car  companies  formerly  paid  an  annual  privilege  tax  of 
$500  and  $1  for  each  mile  run  by  its  cars  in  the  state  not  to  exceed  $1,000 
in  all.     In  1901  this  was  made  $1,2.50  and  the  mileage  tax  removed. 

Building  and  loan  associations,  domestic  or  foreign,  pay  a  privi- 
lege tax  of  $1  on  each  $1,000  of  paid-up  capital  stock  up  to  $100,000  and 
50  cents  on  each  $1,000  over  $100,000,  and  must  pay  taxes  on  office 
furniture  and  real  estate,  but  are  not  required  to  pay  taxes  upon 
mortgages  on  real  estate. 

Telegraph  companies  in  addition  to  the  property  tax,  pay  an  annual 
privilege  tax;   companies   whose    lines   in    the   state  do    not  exceed 


652 


WEALTH,  DEBT,  AND  TAXATION. 


150  miles  pay  $1  per  mile;  over  150  miles,  $500,  together  with  $1  per 
mile ;  long  distance  telephone  companies  whose  lines  do  not  exceed  200 
miles  within  the  state  pay  50  cents  per  mile;  over  200  miles,  $^50  also, 
in  addition  to  the  taxes  on  their  property. 

Railroad  companies  operating  lines  within  the  state  pay  as  a  railroad 
license  tax  such  percentage  of  their  gross  earnings  accruing  from  busi- 
ness within  the  state,  as  may  be  necessary  to  pay  the  expenses  of  the 
state  railroad  commission. 

V.  Business  taxes  and  licenses. 

For  state  purposes  a  large  number  of  licenses  are 
levied — annually  except  where  otherwise  stated. 

The  licenses  are  as  follows : 

Abstract  companies,  in  towns  or  cities  of  20,000  or  more,  $30;  in  towns 
or  cities  of  10,000  to  20,000,  $20;  5,000  to  10,000,  $10  (addition  in  1903, 
less  than  5,000,  $5).     Auctioneers,  towns  or  cities  of  20,000  or  over, 
$50;  8,000  to  20,000,  $30;  5,000  to  8,000,  $20;  1,000  to  5,000,  $5;  tran- 
sient auctioneers,  $50.     Bagatelle,  or  Jenny  Lind  table,  $50.     Baseball 
park,  $.50  (added  in   1903,  but   in  towns  of   less   than  15,000,  $25). 
Bond  makers,  $50  (added  in   1903).     Bottlers,  $25.     Billiard  table, 
not  in  connection,  with  a  saloon,  $25.     Billiard  table  in  connection  with 
a  saloon,  $50.     Bowling  alleys,  $25.     Billposters  in  cities  and  towns  of 
20,000  or  more,  $25;    10,000  to  20,000,  $15;   less  than  10,000,  $5. 
Brokers  or  commission  merchants  in  towns  or  cities  of  less  than  2,500, 
$5;  2,500  to  5,000,  $10;  5,000  to  10,000,  $15;  10,000  to  25,000,  $25; 
25,000  or  more,  $50.     Bicycles  for  rent  in  cities  over  20,000,  $15;  10,000 
to  20,000,  $10;  less  than  10,000,  $5.      Book  agents,  except  those  selling 
religious  publications,  and  Federal  or  Confederate  soldiers  of  the  Civil 
War,  or  indigent  or  disabled  persons  selling  only  in  county  of  residence, 
$10  in  each  county.     Brewers,  $100.     Cigarette  dealers  outside  incor- 
porated cities  or  villages,  $5;  in  cities  of  5,000  or  less,  $10;  5,000  to 
10,000,  $20;  10,000  to  20,000,  $25;  in  all  other  places,  $35.     Cigar  and 
tobacco  dealers  in  towns  of  20,000  or  more,  $10;  less  than  20,000,  $5. 
Circuses  in  or  within  2  miles  of  (in  1903  made  5  miles)  towns  or  cities  of 
5,000  or  more,  for  each  day,  $150;  in  other  places,  $100;  pony  and  dog 
shows  in  towns  or  cities  of  10,000  or   more,  per  day,  $35;  in  other 
places,  per  day,  $25;  side  shows,  per  day,  $10;  flying  jennies,  $10.     Cold 
storage,  $10  (in  1903  raised  and  graduated  according  to  size  of  city, 
$200,  $100,  $50,  $25,  and  $10).     Commercial  or  mercantile  agencies, 
$300  (in  1903,  $10  more  for  each  additional  county).     Concerts  or  exhi- 
bitions, not  wholly  for  charitable,  school,  or   religious   purposes,  $5 
(in  1903  made  $10,  and  if  continuous,  $5  per  day,  $15  per  week,  or  $30 
per  month).     Collecting  agencies  in  towns  or  cities  of  20,000,  $25  (in 
1903  made  $100) ;  less  than  20,000,  $10  (in  1903  made  $25).     Construc- 
tion companies,  $25  (in  1903  made  $10  in  each  county).     Compounders 
and  rectifiers,  $200/    Cotton  buyers,  $10  (in  1903  made  $10  in  each 
county).      Corporations    doing  business  in  Alabama  not  specifically 
required  to  pay  some  other  license  whose  paid-up  capital  stock  is  under 
$10,000  pay  $10;  $10,000  to  $25,000  pay  $15;  $25,000  to  $50,000  pay 
$25:   $50,000  to  $100,000  pay  $50;  $100,000  to  $200,000  pay  $75; 
$200,000   to  $300,000   pay  $125;    $300,000    to    $400,000   pay    $175; 
$400,000  to  $500,000  pay  $200;  $.500,000  to  $1,000,000  pay  $300;  exceeds 
$1,000,000  pay  $500.     Banks  are  exempt.     Coal  or  coke  agents  or 
dealers,  in  towns  of  20,000  or  over,  $20;  5,000  to  20,000,  $10;  5,000  or 
less,  $5.      Dealers  in  playing  cards,  $5.     Cane  racks  (see  Devices). 
Distillers,  $25  (in  1903  raised  to  $50).     Dog  shows  (see  Circuses) .     De- 
tective agencies,  [$50.      Devices,  such   as  throwing   at   figures,   cane 
racks,  knife  racks,  strength  and  lung  testers,  etc.,  $25  in  each  county. 
Dummy   and   electric    railways,  in   counties  of   40,000  or  over,  $50; 
30,000  to  40,000,  $40;  less  than  30,000,  $10.     Dice  and  dice  boxes  and 
dominoes  in   connection  with   saloon,  $25   (added   in   1903).      Each 
town  or  city  having  dispensary,  if  less  than  500,  $250;  500  to  1,000, 
$500;  over  1,000,  $250  additional  for  each  1,000  or  majority  fraction. 
Electric  light  and  power,  gas  and  water  works  (street  railroad  added 
in  1903),  in  cities  or  towns  of  20,000  or  more,  $100   (in  1903  made 
$200);  10,000  to  20,000,  $.50;  5,000  to  10,000,  $25;   less  than  5,000, 
$15.     Entertainments  where  dancing   is   had   for   admission   fee,   $5. 
Eyeglasses  (see  Peddlers).     Express  companies  (see  under  A.  IV,  Cor- 
poration  taxes).      Feather  renovators,  $10  in  each  county  (in  1903 
raised  to  $50).     Fire,  bankrupt,  insolvent  sales,  $100.     Toll  bridges 


or  ferries  within  two  miles  of  town  or  city  of  2,000,  when  income  is 
more  than  $300  and  less  than  $600,  $5;  same  when  income  is  over 
$600,  $10;   in  or  within  two  miles  of  town  or  city  of  2,000  to  5,000, 
$50;  5,000  or  more,  $75.     Flying  jennies,  hobbyhorses,  or  merry-go- 
rounds  in  cities  and  towns  of  20,000  or  within  one  mile,  for  each 
week,  $5;  for  each  month,  $10;    for  each  year,  $30;  2,000  to  20,000, 
$5  per  month,  $2.50  per  week,  $20  per  annum;  in  other  places,  $1 
per  week,  $2.50  per  month,  and  $10  per  year.      Dealers  in  futures, 
$200  (made  to  include  "bucket  shops,"  in  1903,  and  rates  $.500  in 
towns  or  cities  of  20,000  or  more;  $250  in  all  other  cities).     Fortune 
tellers,  $5.     Fruit  stands  in  cities  and  towns  over  10,000,  $5;  in  other 
places,  $2.50.     Gypsies  and  traders,  $25  in  each  county.     Horse  dealers. 
40  cents  on  each  animal  sold  (in  1903  made  $20  per  annum).     Illu- 
minating oil  (added  in  1903),  to  enforce  inspection  at  i  «ent  per  gallon. 
Insurance  companies  doing  a  banking  business,  $50.     Ice  factories, 
daily  capacity  10  tons,  $15;  10  to  15  tons,  $25;  over  15  tons,  $.50. 
Itinerant  traders,  $.50.     Knife  racks  (see  Devices).     Laundries  (other 
than  those,  ran  by  hand),  $10  (in  1903  made  to  apply  to  hotels  and 
exempted  laundries  in  towns  or  villages  of  less  than  1,000,  and  washer- 
women).    Lightning  rod  agents,  $50.     Legerdemain  or  sleight  of  hand, 
$10.     Liquor  dealers  (spirituous,  vinous,  or  malt),  at  retail  on  steam- 
boat or  other  water  craft,  or  on  sleeping,  dining,  or  buffet  car,  $350;  in 
towns  or  cities  less  than  1,000,  $200;  1,000  to  3,000,  $250;  3,000  to 
5,000,   $275;  5,000   to    10,000,   $300;  more    than    10,000,   $350;  but 
dealers  in  beer  alone  pay  one-fourth  these  amounts,  and  wines  alone, 
one-tenth  of  same.     For  wholesale  dealers,  $350;  dealers  in  cider,  $10. 
(In  1903  wholesalers  in  lager  beer  alone  were  given  a  license  of  $150.) 
Menageries  or    museums,  $25.      Slot   machines,  $2  (new   regulations 
as  to  use  in  1903).      Mercantile  agencies  (see  Commercial  agencies). 
(Added  in  1903.)    Merchandise  brokers,  cities  of  25,000  or  more,  $25; 
10,000  to  25,000,  $15;  5,000  to  10,000,  $10;  2,500  to  5,000,  $5;  less 
than  2,500,  $2.50.     Money  lenders,  $100;  banks  exempt.      News  com- 
panies, $100,  in  lieu  of  all  state  and  county  licenses.     Oils,  illuminating 
or  lubricating  oils  or  fuel  oils  at  wholesale,  one-half  of  1  per  cent  of 
gross  sales,  collected  by  state  tax  commissioner  on  a  commission  of  10 
per   cent.     Pawnbrokers,  $75  (in   1903  made  $150  with   $50   extra 
if  pistols  are,  sold).     Patent  rights,  each  $5  in  each  county.     Peddlers 
of  medicines,  $50  in  each  county  (in   1903  made  $100,  one-half  for 
the  county);   spectacles  or  eyeglasses,  $5  for  each  county;  peddlers 
of  medicine,  with  vocal  or  instrumental  music  or  both,  $100  in  each 
county;   in    wagon   drawn   by  one    horse   or   other    animal,  $40  (in 
1903   reduced   to   $25);  two  or  more  horses,   $55  (in    1903   reduced 
to  $35);  on  a  horse  or  other  animal,  $25  (in  1903  reduced  to  $15); 
on  foot,  $15  (in  1903  reduced  to  $10);  when  accompanied  by  singers 
or  performers  on  musical  instruments,  $100.     Exempt  are,  peddlers  of 
tinware  only;  wooden,  stone  or  clay  hollow  ware  only;   tanners,  per- 
sons disabled,  incapacitated  Confederate  soldiers;  peddlers  of  fish,  oys- 
ters, game,  fresh  meats,  poultry,  fruit,  and  all  farm  products  raised  by 
the   seller.     Clock    peddlers,  $500  and   $250   county  license   in  each 
county.     Citizens  of  Alabama  five  years  resident  who   were  soldiers 
or   sailors  of   the  Confederacy  and  do  not  own  property  over  $1,000 
may  peddle  outside  cities  without  paying  license,  but  they  may  not 
peddle  medicines.     Photographers  in  railroad  car,  $15  (in  1903  made 
$25);  traveling  in  any  other  way,  $5.     Dealers  in  pistols,  bowie  or  dirk 
knives,  and  brass  knuckles,  $50.     Dealers  in  pistols  or  rifle  cartridges  in 
towns  or  cities  of  20,000  or  more,  $50;  10,000  to  20,000,  $25;  other 
places,  $10.     Public  halls  in  towns  of  more  than  5,000,  $25;  2,000  to 
5,000,  $15;  less  than  2,000,  $10.     Pool  tables,  pin  pool,  $100;  not  pin 
pool,  but  in  connection  with  saloon,  $50;  for  hire  not  in  connection 
with  saloon,  $25.     Plumbers  or  gas  fitters  in  towns  of  10,000  or  more, 
$10  (in  1903  made  $25);  in  other  places,  $5  (in  1903  made  $10).     Pig 
iron  storage  companies,  $50.   Race  tracks  at  or  within  five  miles  of  city 
of  5,000,  $100;  more  than  5,000,  $200.     Railroad  ticket  brokers,  except 
agents  of  a  railroad,  in  cities  or  towns  of  10,000  inhabitants  or  over, 
$100;  less  than  10,000,  $50.      Real  estate  brokers  or  agents  in  cities 
or  towns  of  10,000  or  more,  $15;  less  than  10,000,  $5  (in  1903  a  new 
class,  5,000  to  10,000,  at  $10,  was  made).     Social  clubs  selling  liquors 
pay  retail  liquor  license.     Supply  cars,  $100.     Skating  rinks,  $25.     Sew- 
ing machine  agents,  $25  in  each   county  (in  1903  agents  for  stoves, 
ranges,  pianos,  or  organs  were  added).     Shooting  galleries,  $15.     Side 
shows  (see  Circuses).     Stock  and  bond  dealers,  $20  (in  1903  made  $35). 


TAXATION  AND  REVENUE  SYSTEMS— ALABAMA. 


653 


Tenpin  alleys  (see  Bowling  alleys).  Theattrs  in  cities  and  towns  over 
8,000,  $50;  less  than  8,000,  $25.  (In  1903  in  cities  and  towns  of 
more  than  20,000,  $100;  the  rest  as  before.)  Toll  bridges  (see  Ferries). 
Telephone  companies  in  cities  and  towns  of  20,000,  $25;  10,000  to 
20,000,  $10;  all  others,  $5.  Private  lines  between  residences  exempt 
(added  in  1903).  Junk  dealers,  $150.  Warehouse  and  elevator  com- 
panies in  cities  of  more  than  20,000.  $20  (in  1903,  $-50);  less  than 
20,000,  $10  (in  1903,  $25).  Waterworks  (see  Electric  Light  companies). 
Witness  certificates,  dealing  in  claims  against  the  state,  $10. 

Tax  on  the  sale  of  commercial  fertilizers.— Dealers  in  commercial  fer- 
tilizers pay  $1  per  annum.  All  fertilizers  sold  in  packages  of  200 
pounds  or  less  must  bear  state  tax  tag,  for  which  a  payment  of  5  cents 
is  collected;  over  200  pounds,  5  cents  for  each  200  pounds  or  fraction 
thereof. 

3.  Collection — 
State  license  taxes  are  paid  to  the  judge  of  probate, 
who  issues  licenses  and  enforces  the  regulation.  He 
is  allowed  a  fee  of  50  cents  paid  by  the  taxpayer. 
The  judge  of  probate  remits  directly  to  the  state 
treasurer. 

B.    FEES. 

Corporations,  before  a  commission  shall  issue,  pay 
the  judge  of  probate,  in  the  county  where  their  chief 
place  of  business  is,  for  the  benefit  of  the  state,  the 
following  fees : 

When  proposed  capital  stock  is  $.50,000  or  less,  $25;  $50,000  to 
$100,000,  $50;  $100,000  to  $2.50,000,  $75;  $2.50,000  to  $,500,000,  $100; 
$500,000  to  $1,000,000,  $200;  $1,000,000  and  over,  $250.  Also  small 
fees  for  filing  papers,  copies  thereof,  etc.  The  same  fees  are  charged 
foreign  corporations.  Insurance  companies  of  every  sort  pay  the 
insurance  commissioner  the  following  fees:  For  filing  charter,  $100; 
for  each  annual  statement,  $100;  agents'  certificates  and  renewals, 
$2.50;  seal  of  office,  $1;  copies  of  papers,  10  cents  per  100  words. 

County  Revenues. 

a.   TAXES. 

I.  The  general  property  tax. 

1.  Base — 

The  property  included  and  the  method  of  assess- 
ment and  of  equalization  are  the  same  for  county  as 
for  state  purposes. 

2.  Rate — 

The  rate  is  fixed  by  the  court  of  county  com- 
missioners, and  a  special  rate  may  be  levied  for 
erecting  or  repairing  county  buildings.  If  three- 
fifths  of  the  votes  cast  in  an  election  favor  it,  a 
special  rate  may  be  levied  for  school  purposes.  The 
rate,  except  to  pay  indebtedness,  m°y  not  exceed 
one-half  of  1  per  cent. 

3.  Collection — 

Made  by  county  collector  at  the  same  time  and  in 
the  same  manner  as  state  taxes. 

II.  Poll  tax. 

Able-bodied  adult  males  may  be  required  to  work 
on  roads  as  may  be  necessary,  anywhere  within  six 
miles  of  their  residence,  but  not  to  exceed  ten  days 
per  annum;  or,  in  default  of  labor,  to  pay  not  less 
than  SI  nor  more  than  $3  per  day  of  required  service 
III  and  IV.  Inheritance  tax  and  corporation  taxes. 

None  for  the  county. 


V.  Business  taxes  and  licenses. 

The  court  of  county  commissioners  may  levy 
license  taxes  additional  to  the  state  license  tax  and 
on  the  same  subjects  up  to  50  per  cent  of  the  state 
tax  except  where  otherwise  provided. 

Rates  especially  mentioned  are  for  lightning  rod  agents,  $10;  for 
peddlers  of  medicine,  $50;  peddlers  of  -clocks,  $250;  supply  cars,  $10. 
Dogs  may  be  registered  and  a  fee  of  25  cents,  together  with  a  tax  of 
$1,  must  then  be  paid  to  judge  of  probate. 

Municipal  Revenues, 
a.  taxes. 

I.  The  general  property  tax. 

1.  Base — 

a.  The  property  included  is  the  same  as  for  state 
taxation. 

b.  Municipalities  may  make  an  annual  assessment  of 
their  own. 

c.  There  is  no  equalization  proper,  but  the  intendant 
and  the  alderman  hold  a  meeting  to  "correct  errors." 

2.  Rate— 

The  municipal  rate  is  limited  by  the  constitution  of 
1901  to  one-half  of  1  per  cent  of  the  valuation  of  prop- 
erty as  assessed  for  state  purposes,  and  is  fixed  by  the 
municipal  authorities.  (See  citations  from  constitu- 
tion for  numerous  special  provisions.) 

3.  Collection — 

The  municipal  authorities  may  appoint  some  person 
to  collect  taxes;  the  levy  has  the  force  of  a  judgment 
and  may  be  enforced  in  a  manner  analogous  to  that  for 
state  taxes. 

II.  Poll  tax. 

Municipalities  may  levy  a  poll  tax  for  road  or  street 
purposes  of  not    exceeding   $2    on   each  able-bodied 
adult  male  inhabitant  who  has  resided  therein  three 
months. 
Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

No  such  taxes  are  levied  by  the  municipalities  (but 
see  Business  taxes  and  licenses). 
V.  Business  taxes  and  licenses. 

Express  companies  pay  the  following  license  taxes 
in  municipalities  annually: 

When  the  value  of  collections  is  $500  or  less,  $2.50;  $500  to  $1,000, 
$5;  $1,000  to  $2,000,  $10;  $2,000  to  $3,000,  $15;  $3,000  to  $4,000,  $20; 
$4,000  to  $5,000,  $25;  $5,000  to  $10,000,  $.50;  $10,000  to  $15,000,  $75; 
$15,000  to  $20,000,  $100,  $20,000  to  $25,000,  $150;  $25,000  to  $30,000, 
$200;  over  $30,000,  $250. 

Telegraph  and  long  distance  telephone  companies  may  also  be  taxed 
by  municipalities  for  the  privilege  of  doing  business. 

Municipal  authorities  have  power  to  license,  tax,  regulate,  and  re- 
strain theatrical  and  other  shows  and  amusements,  and  the  retailing 
of  spirituous,  vinous,  and  malt  liquors  within  the  corporate  limits;  to 
license  wagons,  carts,  etc.,  not  to  exceed  $30;  retail  liquor  dealers,  not 
less  than  $20  nor  more  than  $500;  merchants,  not  over  $25;  auction- 
eers, not  over  $50;  and  on  each  pack  of  playing  cards,  not  over  $1. 

C.    FINES    AND    PENALTIES. 

Municipal  authorities  have  power  to  impose  fines 
not  to  exceed  $50. 


654 


WEALTH,  DEBT,  AND  TAXATION. 


School  Revenues. 

The  schools  are  administered  in  districts  or  city  school 
districts,  each  of  which  receives  from  the  state  treasury 
via  the  county  its  apportionment  of  the  lump  sum 
appropriation  or  of  the  proceeds  of  the  rate  levied 
especially  for  schools,  now  fixed  by  constitution  not 


to  exceed  30  cents;  also  in  the  same  manner  all  poll 
taxes  collected  within  its  bounds;  an  apportionment 
of  the  sixteenth  section  fund  and  other  funds  derived 
from  the  sale  of  lands,  and  4  per  cent  on  surplus  reve- 
nues of  the  United  States  deposited  with  the  state; 
all  escheats  to  the  state;  and  certain  licenses.  (See 
Constitutional  provisions.) 


ALASKA.1 


The  revenues  of  Alaska  are  derived  from  taxes  on 
business  and  trade.  This  system  of  license  taxes  is 
the  main  source  of  revenue  for  general  district  pur- 
poses, and  no  provision  is  made  for  the  taxation  of 
real  or  personal  property  for  district  revenues. 

Towns  of  300  inhabitants  may  incorporate,  and  the 
council  has  power  to  impose  and  collect  a  poll  tax  on 
electors,  a  tax  on  dogs,  a  general  tax  on  real  and 
personal  property,  possessory  rights,  and  improve- 
ments, and  such  license  taxes  on  business  as  the 
council  may  deem  reasonable. 

Municipal  taxes  are  not  to  exceed  1  per  cent  on  the 
assessed  valuation  of  property,  and  all  assessments 
made  by  the  corporation  assessor  are  subject  to  re- 
view by  the  council,  and  appeals  may  be  taken  to  the 
district  court. 

Fifty  per  cent  of  all  license  moneys  collected  by 
the  clerk  of  the  district  court  under  the  laws  of  the 
United  States  within  such  towns  is  to  be  paid  over 
to  the  treasurer  of  the  town  and  used  for  school 
purposes. 

Fifty  per  cent  of 'the  license  money  collected  out- 
side of  towns  in  the  district  of  Alaska  is  to  be  expended 
under  the  direction  of  the  Secretary  of  the  Interior 
for  school  purposes  outside  of  towns  in  the  district. 

The  act  of  Congress  of  June  6,  1900  (chapter  786, 
31  Stat.,  321),  an  act  making  further  provision  for  a 
civil  government  for  Alaska,  and  for  other  purposes, 
provides : 

Any  person  or  corporation  prosecuting  any  of  the 
following    lines    of    business    within    the    district    of 


Alaska   must  first  obtain   a   license   from   a   district 
court  and  pay  for  such  license  as  follows: 

Abstract  offices,  per  annum,  $50;  banks,  per  annum,  $250;  boarding 
houses,  10  or  more  guests,  per  annum,  $15;  brokers  (money,  bill,  note, 
and  stock),  per  annum,  $100;  billiard  rooms,  per  table,  per  annum,  $15; 
bowling  alleys,  per  annum,  $15;  breweries,  per  annum,  $500;  bottling 
works,  per  annum,  $200;  cigar  manufacturers,  per  annum,  $25;  cigar 
stores,  per  annum,  $15;  drug  stores,  per  annum,  $50;  public  docks, 
wharves,  warehouses,  10  cents  per  ton  on  freight  handled  or  stored; 
electric  light  plants  furnishing  light  or  power,  per  annum,  $300.  Fish- 
eries— salmon  canneries,  per  case,  4  cents;  salmon  salteries,  per  barrel, 
10  cents;  fish-oil  works,  per  barrel,  10  cents;  fertilizer  works,  per  ton, 
20  cents.  Freight  and  passenger  transportation  lines,  river  and  lake 
steamers,  $1  per  ton  per  year  on  net  tonnage  of  each  vessel;  gas  plants, 
for  heat  and  light,  per  annum,  $300;  hotels,  per  annum,  $'50;  halls, 
public,  per  annum,  $10;  insurance  agents  and  brokers,  per  annum,  $25; 
jewelers,  $25;  mines — quartz  mills,  per  stamp,  per  year,  $3.  Mercan- 
tile establishments  and  manufactories — business  $100,000,  per  annum, 
$500;  business  $75,000,  per  annum,  $375;  business  $50,000,  per  an- 
num, $250;  business  $25,000,  per  annum,  $125;  business  $10,000,  per 
annum,  $50;  business  under  $10,000,  per  annum,  $25;  business  under 
$4,000,  per  annum,  $10.  Meat  markets,  per  annum,  $15;  manufac- 
tories, same  classification  and  license  charges  as  mercantile  establish- 
ments; physicians,  itinerant,  per  annum,  $50;  planing  mills,  itinerant, 
per  annum,  $50;  pawnbrokers,  itinerant,  per  annum,  $300;  peddlers, 
itinerant,  per  annum,  $25;  patent  medicine  vendors,  per  annum,  $50; 
railroads,  per  mile,  per  annum,  $100;  restaurants,  per  annum,  $15; 
real  estate  dealers  and  brokers,  per  annum,  $50;  ships  and  shipping,  per 
ton,  per  annum  (net  tonnage),  $1;  sawmills,  per  1,000  feet,  10  cents; 
steam  ferries,  per  annum,  $100;  toll  road  on  trail,  per  annum,  $200; 
tobacconists,  per  annum,  $15;  tramways,  per  mile,  per  annum,  $10; 
transfer  companies,  per  annum,  $50;  taxidermists,  per  annum,  $10; 
theaters,  per  annum,  $100;  waterworks,  per  annum,  $50. 

B.    FEES. 

Attorneys,  admission  fees,  $10;  notary  public  commission,  $10. 
(Devoted  to  the  historical  library  and  museum.) 


ARIZONA.2 


Arizona  depends  for  territorial  revenue  mainly  upon 
the  general  property  tax. 

In  the  counties  this  tax  is  supplemented  by  licenses. 


ORGANIC  LAW. 

R.  S.,  U.  S.,  section  1851.  *  *  *  No  tax  shall  be  imposed  upon 
the  property  of  the  United  States,  nor  shall  the  lands  or  other  property 
of  nonresidents  be  taxed  higher  than  the  lands  or  property  of  residents. 

1  This  compilation  is  derived  mainly  from  the  following  sources: 
Act  of  Congress,  June  6,  1900,  chapter  786.     An  act  making  further 

provision  for  a  civil  government  for  Alaska. 

Act  of  Congress,  March  3,  1901,  chapter  859.  An  act  to  amend  the 
above.     (31  Stat.,  2,  1438.) 

2  This  compilation  is  based  mainly  upon  the  Revised  Statutes  of  Ari- 
zona territory,  1901. 


(1  Supp.  R.  S.,  U.  S.,  p.  503,  being  chap.  818,  49th  Cong.,  1st  sess. 
July  30, 1886.)  (Known  as  the  "Harrison  Act.")  The  legislature  of  the 
territories  of  the  United  States,  now  or  hereafter  to  be  organized,  shall 
not  pass  local  or  special  laws  in  any  of  the  following  enumerated  cases, 
that  is  to  say:  *  *  *  For  the  assessment  and  collection  of  taxes  for 
territorial,  county,  township,  or  road  purposes. 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  The  county  assessors.  In  counties  of  the  first,  second,  and  third 
classes  an  assessor  is  appointed  by  the  board  of  supervisors  for  a  term  of 
four  years.  In  counties  of  the  fourth,  fifth,  and  sixth  classes  the  sheriff 
is  ex  officio  assessor. 

(2)  The  county  treasurer,  who  is  ex  officio  tax  collector. 


TAXATION  AND  REVENUE  SYSTEMS— ARIZONA. 


655 


(3)  In  incorporated  cities  an  assessor,  appointed  by  the  board  of  trus- 
tees, who  is  ex  officio  tax  collector.  He  is  compensated  by  fees,  which 
are  added  to  the  property  and  license  taxes. 

(4)  The  county  board  of  supervisors,  which  acts  as  county  board  of 
equalization.  The  mayor  and  council  constitute  the  city  board  of 
equalization. 

(5)  The  auditor  and  two  other  members,  appointed  by  the  governor 
for  a  term  of  two  years,  who  constitute  the  territorial  board  of  equaliza- 
tion ;  they  also  constitute  the  board  of  assessment  for  railroad  property. 

(6)  The  territorial  auditor,  appointed  by  the  governor  for  a  term  of 
two  years. 

Territorial  Revenues. 

a.    TAXES. 

I.   The  general  property,  tax. 
1.  Base — 

a.  The  property  included  and  exempt. — All  property 
of  every  kind  and  nature  whatsoever  within  the  terri- 
tory, except  as  specially  exempted,  is  subject  to  this 
tax. 

(1)  Real  estate  is  defined  to  include  the  ownership  of,  or  claim  to,  or 
possession  of,  or  right  of  possession  to  any  land.  But  it  does  not  include 
mining  claims,  either  lode  or  placer.  Water  ditches  constructed  for 
mining,  manufacturing,  or  irrigating  purposes,  and  wagon,  turnpike, 
toll  roads,  and  telegraph  lines  are  treated  as  real  estate. 

(2)  Personal  property  includes  all  property  not  included  under  (1), 
Whenever  solvent  debts  (credits)  are  assessed,  the  person  assessed  may 
deduct  his  liabilities.  Shares  of  stock  are  declined  to  possess  no  value 
beyond  that  of  the  property  of  the  corporation  for  which  they  stand  and 
are  not  taxable  to  the  stockholders,  but  the  property  they  represent  is 
taxable  to  the  corporation.  Bank  stock  is  excepted  from  this  rule  and 
is  taxable  to  the  stockholders.  Property  under  mortgage  or  lease  shall 
be  listed  by  and  taxed  to  the  mortgagor  or  lessor,  unless  it  be  listed  by 
the  mortgagee  or  lessee. 

(3)  The  exemptions,  in  addition  to  all  public  property,  ace:  Houses 
occupied  by  fire  companies  and  their  apparatus;  free  public  libraries, 
colleges,  and  schools;  public  hospitals,  asylums,  poorhouses,  and  other 
charitable  or  benevolent  institutions;  agricultural  societies;  churches; 
cemeteries;  property  of  widows  and  orphans  not  to  exceed  $1,000, 
where  their  total  assessment  does  not  exceed  $2,000;  private  irrigating 
ditches;  and  for  ten  years  after  February,  1901,  the  franchises,  right 
of  way,  roadbeds,  bridges,  culverts,  rolling  stock,  and  other  property 
used  in  the  actual  operation  and  construction  of  newly  begun  railroads. 

b.  Assessment. — All  property,  except  that  of  rail- 
roads, is  assessed  by  the  county  assessors.  It  is  to  be 
assessed  at  its  full  cash  value,  which  is  defined  as 
"what  the  property  would  be  taken  for  in  payment  of 
a  just  debt  due  from  a  solvent  debtor."  The  assess- 
ment refers  to  the  first  Monday  in  February  and  the 
roll  must  be  made  up  between  that  date  and  the  first 
Monday  in  June .  The  assessment  is  based  upon  a  sworn 
statement  furnished  to  the  assessor  by  the  taxpayer, 
or,  in  neglect  thereof,  upon  the  best  information  obtain- 
able. The  penalty  for  furnishing  a  false  list  is  assess- 
ment at  five  times  the  amount  of  tax  for  the  year  and 
loss  of  all  rights  before  the  board  of  equalization. 
Fifty  per  cent  of  the  penalty  goes  to  any  informant. 
The  refusal  to  file  a  statement  constitutes  a  misde- 
meanor punishable  by  a  fine  of  not  less  than  $10  nor 
more  than  $300,  or  imprisonment  for  not  less  than  two 
days  nor  more  than  three  months,  or  both.     The  as- 


sessor is  liable  on  his  bond  for  the  taxes  on  property 
which  he  neglects  to  assess. 

Transient  herds  of  sheep  or  goats  are  assessable  in  the  place  where  the 
owner  resides. 

The  property  of  railroads,  except  such  as  is  not  used  in  connection 
with  the  operation  of  the  roads,  is  assessed  by  the  territorial  board  of 
equalization.  The  property  so  assessed  includes  the  franchise,  right  of 
way,  roadbed,  bridges,  culverts,  rolling  stock,  depots,  station  grounds, 
buildings,  telegraph  lines,  and  other  property  used  exclusively  in  the 
operation  of  the  railway.  The  assessment  so  made  is  apportioned  among 
the  counties  and  municipalities  on  the  basis  of  number  of  miles  of  main 
track. 

No  land  may  be  assessed  at  less  than  75  cents  per  acre. 

Shares  of  bank  stock  are  assessed  to  the  shareholders,  but  the  tax, 
being  a  lien  on  shares  and  dividends,  may  be  paid  by  the  bank. 

c.  Equalization. — The  county  board  of  supervisors 
acts  as  a  county  board  of  equalization  and  may  in- 
crease or  lower  any  assessment,  and  may  require  the 
assessor  to  amend  the  roll  or  may  itself  amend  it.  An 
appeal  from  the  decision  of  the  county  board  of  equali- 
zation lies  to  the  district  court. 

The  territorial  board  of  equalization  equalizes  the 
assessment  between  counties,  increasing  or  diminish- 
ing the  valuation  of  the  property  of  any  county,  to 
produce  a  just  relation  between  all  valuations  of  prop- 
erty in  the  territory,  but  it  may  not  reduce  the  aggre- 
gate valuation  of  all  counties  below  the  aggregate 
returned  by  the  supervisors. 

2.  Rate— 

The  territorial  board  of  equalization  determines  the 
tax  rate.  This  rate  is  not  to  exceed  35  cents  on  each 
$100  of  assessable  property  for  general  purposes  and 
such  further  sum  as  is  required  to  meet  the  debt 
charges.  There  are,  however,  a  number  of  other 
levies: 

Insane  asylum  interest  fund,  10  cents;  normal  school  fund,  5  cents; 
territorial  school  fund,  3  cents:  university  fund,  6  cents;  prison  fund, 
12  cents;  range  fund,  5  cents;  redemption  fund,  2\  cents;  interest 
world's  fair  bonds,  T3j5  cent;  interest  fund,  13^  cents;  university 
interest  fund,  J  cent;  capitol  interest  fund,  1J  cents;  Tempe  normal 
school  fund,  2J  cents;  ibid.,  building  fund,  4  cents;  university  inter- 
est fund,  Ty5  cent;  Northern  Arizona  normal  school  fund,  3  cents; 
ibid.,  building  fund,  1  cent;  territorial  industrial  school  fund,  1  cent; 
ibid.,  improvement  fund,  4  cents;  interest  St.  Louis  exposition  bonds, 
tVs  cent. 

3.  Collection — 

Territorial  taxes,  together  with  county  and  munici- 
pal taxes,  are  extended  on  one  duplicate  assessment 
roll  and  are  all  collected  by  the  county  tax  collector. 
Taxes  become  delinquent  on  the  third  Monday  in 
December,  and  the  penalty  for  delinquency  is  5  per 
cent.  Taxes  are  a  general  lien  on  all  property  of  the 
taxpayer,  and  may  be  collected  by  seizure  and  sale. 
Taxes  on  personal  property,  however,  when  they  are 
not  secured  by  real  estate  are  collected  by  the  assessor. 
II.  Poll  tax. 

There  is  no  territorial  poll  tax  (see  County  and  Mu- 
nicipal revenues). 


656 


WEALTH,  DEBT,  AND  TAXATION. 


III.  Inheritance  tax. 

There  is  no  tax  on  inheritances. 

IV.  Corporation  taxes. 

Corporations  generally  are  taxed  under  the  general 
property  tax,  but  foreign  insurance  companies  pay  a 
tax  of  2  per  cent  per  annum  on  all  premium  receipts 
within  the  state. 

V.  Business  taxes  and  licenses. 

Licenses  to  slaughter  are  paid  to  the  secretary  of  the 
live  stock  sanitary  board  and  are: 

Within  4  miles  of  town  of  5,000  inhabitants,  $150  annually;  within  4 
miles  of  town  of  3,000  to  5,000  inhabitants,  $120  annually:  within  4 
miles  of  town  of  1,000  to  3,000  inhabitants,  $90  annually;  in  afl  other 
cases,  $30  annually. 

B.    FEES. 

Banks  pay  to  the  bank  comptroller  (the  auditor  acts  as  such)  a 
license  fee  at  the  time  of  beginning  business  amounting  to  $5,  and  for 
copies  of  papers,  etc.,  20  cents  per  folio  of  100  words  and  $1  for  certified 
copies. 

For  examination  into  the  condition  of  the  banks:  When  the  capital 
stock  is  $50,000  or  over,  $40;  when  the  capital  stock  is  $25,000  and 
under  $50,000,  $35;  when  the  capital  stock  is  less  than  $25,000,  $30; 
branch  or  agency  banks,  $25;  building  and  loan  associations,  $30. 

Foreign  insurance  companies  pay:  For  riling  statement,  $5;  for 
issuing  certificate  of  authority,  $5;  for  agents'  certificate,  $2;  for  filing 
articles  of  incorporation,  $5;  for  publishing  statement,  $2.50. 

Fees  payable  to  the  secretary  of  the  territory  (prior  to  1903  these 
were  retained  by  him)  are:  For  affixing  seal,  $1:  for  filing  articles  of 
incorporation,  $5;  for  filing  affidavit  of  publication,  $3:  for  recording, 
per  folio,  20  cents;  for  official  bonds,  commissions,  and  miscellaneous 
documents,  $1.50  to  $3;  for  filing  notice  of  intention  to  construct  a  rail- 
road, $10;  for  filing  notice  to  construct  reservoir,  $5. 

County  Revenues. 

a.    TAXES. 

I.  The  general  property  tax. 

1.  Base — 

The  property  included  and  the  method  of  assessment 
and  of  equalization  are  the  same  for  county  as  for 
territorial  revenues. 

2.  Rate— 

The  county  supervisors  may  levy  taxes  not  to 
exceed  $2  on  each  $100  of  assessed  valuation  of  prop- 
erty and  such  additional  amount  as  may  be  necessary 
to  meet  the  interest  and  payment  of  the  county  debts. 

3.  Collection — 

County  taxes  are  collected  in  substantially  the  same 
manner  as  territorial  taxes. 

II.  Poll  tax. 

1.  Base — 

Every  male  person  between  the  ages  of  21  and  60 
years.     Members  of  fire  companies  are  exempt. 

2.  Bate- 


Two  dollars  and  a  half  per  annum. 

3.    Collection — 
Due,  payable,  and  collected  in  the  same  manner  as 
the  taxes  on  personal  property. 

Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There  are  no  inheritance  or  corporation  taxes. 
V.  Business  taxes  and  licenses. 

Liquor  licenses. — First  class,  sales  $20,000  quarterly;  tax,  $125  quar- 
terly. Second  class,  sales  $12,000  to  $20,000  quarterly;  tax,  $100 
quarterly.  Third  class,  sales  less  than  $12,000  quarterly;  tax,  $75 
quarterly.  Fourth  class  (hotels)  selling  only  in  quantities  of  less  than 
2  gallons  and  over  1  pint,  $30  quarterly.  Selling  in  quantities  of 
less  than  1  gallon — in  cities,  etc.,  of  800  and  over,  $50  quarterly;  in 
cities  of  200  to  800,  $40  quarterly;  in  cities  of  less  than  200,  $20  quar- 
terly; wayside  places,  $12  quarterly.  Peddlers'  licenses. — General,  $75 
quarterly;  with  a  wagon,  and  selling  liquor,  $100  quarterly.  Theater 
licenses. — All  kinds  of  exhibitions,  $30  quarterly:  $10  for  each  per- 
formance. Circuses — 5  per  cent  of  gross  receipts.  Billiard  tables, 
$10  quarterly;  bowling  alleys,  $10  quarterly.  Distilleries  and  brew- 
eries.— Sales  per  quarter,  $10,000,  $40  quarterly;  sales  per  quarter, 
$5,000  to  $10,000,  $20  quarterly:  sales  per  quarter,  less  than  $5,000, 
$10  quarterly.  Insurance  agents,  $10  quarterly.  Gaming  tables,  $30 
per  month. 

Municipal  Revenues. 

a.   TAXES. 

I.  The  general  property  tax. 

1.  Base — 

The'  property  assessed  and  the  method  of  assessment 
and  of  equalization  are  substantially  the  same  as 
described  under  territorial  revenues.  Cities  may  have 
a  separate  valuation. 

2.  Rate— 

The  levy  is  made  by  the  board  of  trustees  and  for 
specified  general  purposes  may  not  exceed  three- 
fourths  of  1  per  cent. 

3.  Collection — 

By  the  city  assessor  and  tax  collector  in  substan- 
tially the  same  manner  as  territorial  and  county  taxes. 

II.  Poll  tax. 

1.  Road  poll  tax,  labor  tax. 

a.  Base — 

All  able-bodied  males  between  the  ages  of  2 1  and  50 
years. 

b.  Rate— 

Two  days'  labor,  or  $2  for  each  day. 

c.  Collection — 

In  labor  or  cash  by  the  road  overseer. 

III.  Inheritance  tax. 

There  is  no  inheritance  tax  for  municipalities. 

IV.  Corporation  taxes. 

There  are  no  corporation  taxes  proper.  But  fran- 
chises to  use  the  public  streets  may  be  granted  for 
payment  of  an  annual  rental  based  on  gross  receipts. 


TAXATION  AND  REVENUE  SYSTEMS— ARKANSAS. 


657 


V.  Business  taxes  and  licenses. 

The  city  council  may  license  and  tax :  Gaming  and  fraudulent  devices ; 
sale  of  liquors  in  every  way;  billiard  tables,  bagatelle  tables,  pin  alleys, 
etc.;  hackmen,  draymen,  carters,  porters,  etc.;  auctioneers,  distillers, 
brewers,  lumber  yards,  livery  stables,  money  changers,  pawnbrokers, 
etc.;  hawkers  or  peddlers;  exhibitions,  concerts,  circuses,  etc.; 
butchers:  porters  or  runners  for  cars  or  public  houses;  secondhand  and 
junk  stores:  insurance  companies  and  agencies:  any  and  all  professions, 
trades,  or  callings,  etc.;  ferries. 


School  Revenues. 

The  territorial  school  fund  receives,  besides  the 
receipts  from  lands  and  trust  funds,  the  proceeds  of  3 
cents  per  $100  of  assessed  valuation  of  property. 

The  county  school  fund  receives  not  less  than  50  nor 
more  than  90  cents  levied  by  the  supervisors  on  each 
$100  of  assessed  valuation;  also  the  poll  taxes. 

There  may  also  be  special  school  district  taxes  levied 
by  the  trustees  of  the  school  district. 


ARKANSAS. 


Arkansas  depends  almost  entirely  upon  the  general 
property  tax  and  licenses  or  privilege  taxes;  but  there 
is  also  a  poll  tax  and  an  inheritance  tax.  There  are  no 
special  corporation  taxes,  and,  except  for  the  assess- 
ment of  a  few  classes  of  corporations  by  a  state  board, 
no  essential  departures  from  the  local  administration 
of  the  general  property  tax.  The  license  taxes  are  in 
the  main  supplementary  to  the  property  tax,  as  they 
fall  upon  persons  who  would  by  the  nature  of  their 
occupation  otherwise  escape  taxation. 

CONSTITUTIONAL    PROVISIONS. 
ARTICLE   XVI. 

Sec.  5.  All  property  subject  to  taxation  shall  be  taxed  according  to 
its  value,  that  value  to  lie  ascertained  in  such  manner  as  the  general 
assembly  shall  direct,  making  the  same  equal  and  uniform  throughout 
the  state.  No  one  species  of  property,  from  which  a  tax  may  be  col- 
lected, shall  be  taxed  higher  than  another  species  of  property  of  equal 
value.  Provided,  The  general  assembly  shall  have  power,  from  time  to 
time,  to  tax  hawkers,  peddlers,  ferries,  exhibitions,  and  privileges  in  such 
manner  as  may  be  deemed  proper:  Provided  further,  That  the  following 
property  shall  be  exempt  from  taxation:  Public  property  used  exclu- 
sivelv  for  public  purposes;  churches  used  as  such ;  cemeteries  used  exclu- 
sively as  such;  school  buildings  and  apparatus  (includes  private  schools, 
see  42  Ark.,  536),  libraries  and  grounds  used  exclusively  for  school  pur- 
poses; and  buildings  and  grounds  and  materials  used  exclusively  for 
public  charity. 

Sec.  6.  All  laws  exempting  property  from  taxation,  other  than  as 
provided  in  this  constitution,  shall  be  void. 

Sec.  7.  The  power  to  tax  corporations  and  corporate  property  shall 
not  be  surrendered  or  suspended  by  any  contract  or  grant  to  which  the 
state  may  be  a  party. 

Sec.  8.  The  general  assembly  shall  not  have  power  to  levy  state  taxes 
for  any  one  year  to  exceed,  in  the  aggregate,  one  per  cent  of  the  assessed 
valuation  of  the  proDerty  of  the  state  for  that  year. 

Sec.  9.  No  county  shall  levy  a  tax  to  exceed  one-half  of  one  per  cent 
for  all  purposes,  but  may  levy  an  additional  one-half  of  one  per  cent  to 
pay  indebtedness  existing  at  the  time  of  the  ratification  of  this  consti- 
tution. 

Sec.  10.  The  taxes  of  counties,  towns,  and  cities  shall  only  be  paya- 
ble in  lawful  currency  of  the  United  States,  or  the  orders  or  warrants  of 
said  counties,  towns,  and  cities,  respectively. 

Sec.  11.  No  tax  shall  be  levied  except  in  pursuance  of  law;  and  every 
law  imposing  a  tax  shall  state  distinctly  the  object  of  the  same;  and  no 
moneys  arising  from  a  tax  levied  for  one  purpose  shall  be  used  for  any 
other  purpose. 

1  This  compilation  is  derived  mainly  from  the  following  sources: 
A  Digest  of  the  Revenue  Laws  of  the  State  of  Arkansas,  compiled  in 
the  auditor's  office  by  Avery  E.  Moore,  1903. 

Checked  and  verified  by  reference  to  A  Digest  of  the  Statutes  of 
Arkansas,  by  L.  P.  Sandels  and  Joseph  M.  Hill,  published  by  authority 
of  the  general  assembly,  1894,  and  to  the  session  laws  since  1894. 


article  x. 


Sec.  3.  (Exempted  mines  and  manufactures  from  taxation.  Expired 
by  its  own  terms,  in  1881.) 

article  v. 

Sec.  31 .  No  state  tax  shall  be  allowed,  or  appropriation  of  money  made, 
except  to  raise  means  for  the  payment  of  the  just  debts  of  the  state,  for 
defraying  the  necessary  expenses  of  government,  to  sustain  common 
schools,  to  repel  invasion  and  suppress  insurrection,  except  by  a  major- 
ity of  two-thirds  of  both  houses  of  the  general  assembly. 

article  xii. 

Sec.  4.  No  municipal  corporation  shall  be  authorized  to  pass  any 
laws  contrary  to  the  general  laws  of  the  state,  nor  levy  any  tax  on  real  or 
personal  property  to  a  greater  extent,  in  one  year,  than  five  mills  on  the 
dollar  of  the  assessed  value  of  the  same:  Provided,  That  to  pay  indebt- 
edness existing  at  the  time  of  the  adoption  of  the  constitution  an  addi- 
tional tax  of  not  more  than  five  mills  on  the  dollar  may  be  levied. 

article  xiv. 

Sec.  3.  The  general  assembly  shall  provide,  by  general  laws,  for  the 
support  of  common  schools  by  taxes,  which  shall  never  exceed  in  any  one 
year  two  mills  on  the  dollar  on  the  taxable  property  of  the  state;  and  by 
an  annual  per  capita  tax  of  one  dollar,  to  be  assessed  on  every  male 
inhabitant  of  this  state  over  the  age  of  twenty-one  years:  Provided, 
That  the  general  assembly  may,  by  general  law,  authorize  school  dis- 
tricts to  levy,  by  a  vote  of  the  qualified  electors  of  such  district,  a  tax  not 
to  exceed  five  mills  on  the  dollar  in  any  one  year  for  school  purposes: 
Provided,  further,  That  no  such  tax  shall  be  appropriated  to  any  other 
purpose  nor  to  any  other  district  than  that  for  which  it  was  levied. 

ARTICLE  XIX. 

Sec.  11.  *  *  *  and  all  fees  that  may  hereafter  be  payable  by 
law  for  any  service  performed  by  any  officer  mentioned  in  this  section 
(the  governor,  secretary  of  state,  auditor,  treasurer,  attorney-general, 
judges  of  the  supreme  court,  judges  of  the  circuit  court,  commissioner  of 
state  land,  and  prosecuting  attorney),  except  prosecuting  attorneys, 
shall  be  paid  in  advance  into  the  state  treasury.     *     *     * 

Sec.  27.  Nothing  in  this  constitution  shall  be  so  construed  as  to  pro- 
hibit the  general  assembly  from  authorizing  assessments  on  real  prop- 
erty for  local  improvements  in  towns  and  cities  under  such  regulations 
as  may  be  prescribed  by  law,  to  be  based  upon  the  consent  of  a  majority 
in  value  of  the  property  holders  owning  property  adjoining  the  locality 
to  be  affected,  but  such  assessments  shall  be  ad  valorem  and  uniform. 

Amendment  adopted  November,  1898,  provides  that  county  courts 
and  justices  of  peace  may  levy  three-mill  tax  for  county  roads. 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  The  county  assessor,  elected  for  two  years,  compensated  by  fees. 

(2)  The  county  board  of  equalization,  composed  of  "three  intelligent 


932—07 


-42 


658 


WEALTH,  DEBT,  AND  TAXATION. 


citizens,  real  estate  owners,  and  qualified  electors"  selected  from  dif- 
ferent parts  of  the  county,  and  appointed  by  the  governor  for  two  years. 
Counties  having  two  judicial  districts  have  a  board  in  each. 

(3)  The  sheriff  of  each  county,  who  is  ex  officio  tax  collector. 

(4)  The  clerk  of  the  county  court,  who  acts  as  county  auditor,  elected 
for  a  term  of  two  years. 

(5)  The  auditor  of  state,  elected  for  two  years. 

(6)  The  state  board  of  railroad  commissioners,  composed  of  the  gov- 
ernor, the  secretary  of  state,  and  the  auditor  of  state. 

State  Revenues. 

a.   TAXES. 

I.  The  general  property  tax. 
1.  Base — 
a.  The  property  included  and  exempt. — "All  property, 
whether  real  or  personal,  in  this  state;  all  moneys, 
credits,  investments  in  bonds,  stocks,  joint-stock  com- 
panies, or  otherwise,  of  persons  residing  therein;  the 
property  of  corporations  now  existing  or  hereafter 
created;  and  property  of  all  banks  or  banking  com- 
panies now  existing  or  hereafter  created,  and  of  all 
bankers  and  brokers,  shall  be  subject  to  taxation." 

(1)  The  term  "real  property  and  lands''  is  held  to  include  not  only 
the  land  itself,  with  all  things  contained  therein,  but  also  all  buildings, 
structures,  and  improvements  and  other  fixtures,  and  all  rights  and 
privileges  belonging  or  in  any  wise  appertaining  thereto. 

Mineral  rights  may  be  treated  separately. 
"Railroad  track"  is  defined  as  real  estate. 

(2)  The  term  "investment  in  bonds"  is  held  to  include  all  moneys 
invested  in  bonds  of  whatever  kind,  or  certificates  of  indebtedness  com- 
monly called  "script,"  whether  issued  by  incorporated  or  unincorpo- 
rated companies,  towns,  cities,  townships,  counties,  states,  or  other 
corporations,  held  by  persons  residing  in  this  state,  either  by  themselves 
or  by  others  for  them,  whether  for  themselves  or  as  guardians,  trustees, 
or  agents. 

(3)  The  term  "investment  in  stocks"  is  held  to  include  all  moneys 
invested  in  public  stocks  of  this  or  any  other  state,  or  in  any  association, 
corporation,  joint-stock  company,  or  otherwise,  the  stock  or  capital  of 
which  is  or  may  be  divided  into  shares,  for  the  taxation  of  which  no 
special  provision  is  made,  held  by  persons  residing  in  this  state. 

(4)  The  term  "  personal  property  "  includes,  first,  every  tangible  thing 
being  the  subject  of  ownership,  whether  animate  or  inanimate,  other 
than  money,  and  not  forming  a  part  of  any  parcel  of  real  estate;  second, 
the  capital  stock,  undivided  profits,  and  all  other  means  not  forming 
part  of  the  capital  stock  of  every  company,  incorporated  or  unincorpo- 
rated, and  every  share,  portion,  or  interest  in  such  stock,  etc.,  including 
shares,  etc.,  in  every  ship,  vessel,  or  boat,  used  in  navigating  waters 
within  or  bordering  on  the  state,  whether  such  vessel  shall  be  within  the 
state  or  not. 

(5)  National  bank  notes,  United  States  legal  tender  notes,  and  all 
other  notes  and  certificates  of  the  United  States  payable  on  demand 
and  circulating,  or  intended  to  circulate,  as  currency,  and  gold,  silver, 
or  other  coin,  held  or  owned  by  any  citizen  or  resident  of  the  state  of 
Arkansas  are  expressly  declared  to  be  taxable. 

(6)  The  term  "credit"  means  the  excess  of  the  sum  of  all  legal  claims 
and  demands  due  to  the  person  liable  to  pay  taxes  thereon,  including 
deposits  in  banks  when  added  together,  over  and  above  the  sum  of  legal 
bona  fide  debts  owed  by  such  person.  Pensions  received  from  the 
United  States,  or  from  any  state,  are  not  held  to  be  annuities. 

(7)  For  exemptions,  see  constitution,  Article  XVI,  sections  5  and  6; 
and  also  Article  X,  section  3.  The  statutes  add  fire  apparatus  and 
buildings  used  exclusively  for  the  safekeeping  thereof,  whether  belong- 
ing to  any  town  or  to  any  fire  company  organized  therein.  The  statutes 
also  provide  a  method  of  valuing  real  estate  which  exempts  growing 
crops. 


b.  Assessment. — In  general,  there  is  but  one  assess- 
ment and  one  assessment  roll  for  state,  county,  and 
municipal  taxes.  City  and  town  taxes  must  be 
levied  on  the  appraisement  of  the  county  assessor  as 
equalized  for  the  levy  of  state  and  county  taxes. 
The  assessment  refers  to  the  first  Monday  in  June 
and  is  made  on  the  basis  of  a  sworn  list  submitted  by 
the  taxpayer,  and  the  oath  covers  the  values  entered 
in  the  list  as  correct.  The  valuation  must  be  the  fair 
market  value,  not  that  at  which  the  property  would 
sell  for  at  forced  sale. 

Real  estate  is  assessed  once  every  two  years,  in  the 
odd  numbered  years.  All  other  assessments  are  made 
annually. 

All  property,  except  that  of  railroads,  sleeping  or 
dining  car  companies,  express  and  telegraph  com- 
panies, which  is  assessed  by  the  state  board  of  rail- 
road commissioners,  is  assessed  by  the  county  assessor, 
who  is  paid  by  fees  for  the  various  items  of  assessment. 

Every  person  of  full  age  and  sound  mind  is  required  to  list  all 
property  owned  or  in  his  possession  on  the  first  Monday  in  June. 

Merchants  and  manufacturers  are  assessed  upon  the  average  value 
of  property  in  their  possession  during  the  year. 

Banks  are  assessed  upon  the  amount  of  their  paid-up  capital,  undi- 
vided profits,  moneys  which  during  the  year  were  converted  into  non- 
taxable bonds,  and  term  deposits.  Shareholders  in  banks  are  assessed 
upon  their  shares,  and  if  not  required  to  list  the  shares  themselves,  the 
officers  of  the  bank  must  do  so  and  the  bank  must  pay  the  taxes. 

Sleeping  or  dining  car  companies,  express  companies,  and  tele- 
graph companies  are  assessed  every  second  year  by  the  state  board  of 
railroad  commissioners  on  that  proportion  of  their  aggregate  capital 
stock,  at  its  market  value,  which  the  mileage  in  the  state  bears  to  the 
total  mileage.  The  assessment  so  made  is  apportioned  among  the 
counties  on  average  mileage  basis.  Office  furniture  and  other  real 
and  personal  property  is  assessed  locally. 

To  aid  the  assessor  in  determining  the  true  value  of  its  property, 
each  corporation,  including  gas,  telephone,  bridge,  street  railroad,  sav- 
ings bank,  mutual  loan,  building,  transportation,  and  construction 
companies,  is  required  to  list  not  only  the  true  value  of  all  tangible 
property,  but  the  market  value  (or  actual  value)  of  its  paid-up  capital 
stock  and  the  total  amount  of  its  indebtedness. 

The  propertj'  of  railroads  is  assessed  by  the  state  board  of  rail- 
road commissioners.  This  board  formerly  assessed  only  the  "railroad 
track"  and  the  rolling  stock,  but  since  1899  it  has  assessed  "all  prop- 
erty," including  railroad  track,  rolling  stock,  water  and  wood  stations, 
passenger  and  freight  depots,  offices,  furniture,  and  other  such  prop- 
erty, both  real  and  personal.  Only  the  rolling  stock  owned  or  leased 
by  railroads  in  this  state  is  assessed.  The  "railroad  track"  is  assessed 
without  special  reference  to  its  relation  to  the  entire  system  within  and 
without  the  state,  but  that  proportion  only  of  the  total  rolling  stock  is 
assessed  which  the  mileage  in  the  state  bears  to  the  total  mileage. 
The  assessment  made  by  the  state  board  is  apportioned  among  the 
counties  on  the  basis  of  mileage. 

The  penalties  for  failure  to  make  returns  to  the  assessor  are:  For 
individuals,  $1  as  fee  to  assessor,  and  delinquency  may  be  treated  as 
a  misdemeanor  subject  to  a  fine  of  not  to  exceed  $100,  or  imprisonment 
not  to  exceed  three  months,  or  both;  for  banks  and  corporations  gen- 
erally, 50  per  cent  added  to  assessment;  for  sleeping  car  companies  for 
false  statement,  prosecution  of  officer  for  perjury;  for  officers  of  rail- 
roads, a  fine  of  not  less  than  $1,000  nor  more  than  $10,000. 

The  assessor  is  compensated  for  his  services  by  the  following  fees: 
For  each  name  listed,  25  cents:  for  each  list  of  real  property  of  unknown 
or  nonresident  owners,  $1 ;  for  listing  property  of  those  who  make  no 
return,  one-half  of  the  $1  charged  to  taxpayer.  The  assessor  has  to 
attend  in  each  precinct  for  receiving  lists. 


TAXATION  AND  REVENUE  SYSTEMS— ARKANSAS. 


659 


c.  Equalization. — The  county  board  of  equalization 
has  power  to  raise  or  lower  individual  assessments,  to 
correct  errors,  and  to  add  property  omitted.  In  the 
case  of  personal  property  it  must  do  this  so  as  to  con- 
form to  the  true  value  in  money.  The  same  provision 
applies  to  real  estate,  but  it  may  reduce  the  valuation 
of  any  lands  which  have  been  returned  above  their 
true  value  "  as  compared  with  the  average  valuation. " 
In  this  work  it  is  assisted  by  the  clerk  of  the  county 
court.  An  appeal  from  the  action  of  the  board  lies 
to  the  county  court. 

There  is  no  state  equalization  board. 

2.  Rate— 

The  rate  for  state  purposes  is  limited  by  the  consti- 
tution to  1  per  cent  on  the  assessed  valuation. 

The  statutes  provide  2}  mills  for  general  fund;  2  mills  for  public 
schools;  I  mill  for  pension  fund;  J  mill  for  state  capitol  fund;  {  mill 
for  sinking  fund. 

•  Taxes  are  extended  by  the  clerk  of  the  county  court. 

3.  Collection — 

The  lien  for  taxes  attaches  on  the  first  Monday  in 
June.  The  sheriff  of  each  county  is  the  tax  collector. 
Ho  or  his  deputies  attend  in  each  election  precinct, 
after  the  first  Monday  in  January,  for  the  collection  of 
taxes.  Taxes  on  personal  property  become  delin- 
quent after  the  10th  day  of  April,  those  on  real  estate, 
after  the  second  Monday  in  May,  and  may  then  be 
collected  by  distraint.  The  penalty  for  delinquency 
is  25  per  cent. 

The  collector  is  paid  by  commissions,   as  follows: 

For  the  first  $10,000,  5  per  cent;  for  all  sums  over  $10,000  and 
under  $20,000,  3  per  cent :  for  all  sums  over  120,000,  2  per  cent. 

II.  Poll  tax. 

There  is  no  poll  tax  for  state  purposes.  (See  County 
poll  tax.) 

III.  Inheritance  tax. 
(Enacted  in  1901.) 

All  property  passing  by  will  or  the  intestate  laws  of 
the  state,  or  by  deed,  grant,  sale,  or  gift  made  or  in- 
tended to  take  effect  on  possession  after  the  death  of  the 
grantor,  to  any  person  or  corporation  in  trust  or  other- 
wise, except  property  passing  to  the  father,  mother, 
husband,  wife,  lineal  descendant,  adopted  child,  and 
the  lineal  descendants  of  an  adopted  child  of  decedent, 
is  subject  to  a  tax  of  5  per  cent  to  be  collected  by  the 
state  treasurer.  The  court  of  probate  having  juris- 
diction determines  all  questions  arising  in  connection 
with  the  tax,  and  no  executor  or  administrator  can 
be  discharged  until  proof  of  payment  is  submitted. 

IV.  Corporation  taxes. 

There  are  no  special  corporation  taxes  in  Arkansas, 
except  on  insurance  companies.  All  corporations  are 
taxed  under  the  provisions  of  the  general  property 
tax  law. 

Insurance  companies  pay  a  state  tax  of  2\  pei  cent  per  annum  on 
net  receipts,  which  _is  in  lieu  of  all  other  taxes,  state,  county,  and 
municipal. 


V.  Business  taxes  and  licenses. 

The  following  taxes,  generally  known  as  "privilege 
taxes,"  are  levied  annually,  unless  otherwise  stated: 

Peddlers,  $25  for  six  months  or  less.  Exempt  from  this  tax  are: 
Farm  and  produce  peddlers,  indigent  or  disabled  ex-Confederate  or 
United  States  soldiers  or  sailors,  and  blind  persons,  but  such  persons 
may  not  peddle,  liquors.  Clock  peddlers,  $100.  Lightning  rod  and 
stove  agents,  $100.  Sewing  machine,  companies  or  their  general  agents, 
$200,  and  for  each  agent  in  each  county  $5  additional.  Liquor  dealers, 
retail,  $300  (also  a  county  tax  of  $500),  2  per  cent  thereon  as  collector's 
fee  and  $1  as  clerk's  fee  for  issuing  license.  Wholesale  dealers  in  malt 
liquors,  $50  (also  a  county  tax  of  $100)  unless  they  hold  a  retail  license. 
River  traders,  $100. 

B.    FEES. 

Secretary  of  state. — For  filing  charter  of  private  corporation,  $25; 
for  filing  amendments  to  preceding,  $10.  For  filing  charter  of  railroad 
or  telegraph  company:  For  a  line  not  exceeding  25  miles,  $50;  for  a 
line  25  miles  to  50  miles,  $75;  for  a  line  50  miles  to  75  miles,  $100;  for 
a  line  75  miles  to  100  miles,  $125;  for  a  line  100  miles  to  150  miles,  $150; 
for  a  line  150  miles  to  200  miles,  $175;  for  a  line  exceeding  200  miles, 
$200;  for  filing  amendment  to  foregoing,  $25. 

Through  the  insurance  bureau  in  auditor's  office. — For  filing  certified 
copy  of  charter,  $15;  for  filing  annual  statement,  $10;  for  filing  certifi- 
cate of  authority  to  transact  business,  $2;  for  filing  copies  of  papers, 
25  cents  per  folio  and  $1  for  certification. 

County  Revenues. 

a.   TAXES. 

I.  The  general  property  tax. 

1.  Base — 

The  property  included  and  the  method  of  its  assess- 
ment and  equalization  are  the  same  for  county  taxa- 
tion as  for  state. 

2.  Rate— 

The  county  rate  is  limited  by  the  constitution  to  one- 
half  of  1  per  cent  on  the  assessed  valuation  and  one-half 
of  1  per  cent  to  pay  indebtedness  existing  in  1874. 

The  levy  is  made  in  October  by  the  county  court. 
The  statutes  provide  that  the  county  court  may  not 
levy  any  higher  rates  than  the  constitutional  ones. 

3.  Collection — 

County  taxes  are  collected  by  the  sheriff  as  tax  col- 
lector in  the  same  manner  as  state  taxes. 

II.  Poll  tax. 

A  poll  tax  of  $1  is  levied  upon  all  males  over  21 
years  of  age.  This  tax  is  a  prerequisite  for  the  ex- 
ercise of  the  electoral  franchise.  It  is  collected  by  the 
tax  collector,  paid  into  the  county  school  fund,  and 
apportioned  to  the  school  districts  with  the  rest  of  the 
school  fund.  If  not  paid  before  the  10th  of  April,  a 
penalty  of  25  cents  is  added.  If  not  paid  before  the 
Saturday  next  preceding  the  first  Monday  in  July,  a 
penalty  of  $1  is  added,  25  cents  of  which  goes  to  the 
county  clerk  for  his  services  in  entering  the  name, 
and  75  cents  into  the  county  general  fund. 

Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

The  county  does  not  share  in  the  inheritance  tax 
nor  in  the  taxes  on  insurance  companies,  both  of  which 
taxes  are  reserved  for  the  use  of  the  state. 


660 


WEALTH,  DEBT,  AND  TAXATION. 


V.  Business  taxes  and  licenses. 

The  following  taxes  are  levied  annually,  unless 
otherwise  stated: 

Liquor  dealers,  retail,  $500  and  2  per  cent  thereon  as  a  collection  fee 
and  $1  as  clerk's  fee.  Wholesale  dealers  in  malt  liquors,  $100  unless 
they  hold  retailer's  license.  Marriage  licenses  are  taxed  50  cents. 
Peddlers,  $25  every  six  months  or  less.  Circuses  and  menageries,  $100 
per  day  and  $50  for  each  side  show.  County  courts  may  license  and 
tax  exhibitions  for  profit.  Theaters  in  cities  of  20,000  and  over  where 
no  liquor  is  sold,  $100.  Variety  theaters  are  not  included.  Auctioneers, 
$10  for  six  months  or  less.  Agents,  owners,  or  manufacturers  traveling 
and  selling  lightning  rods,  steel  stove  ranges,  clocks,  pumps,  buggies, 
carriages,  and  vehicles,  $200.  River  traders,  $100.  The  county  court 
licenses  ferries,  and  may  charge  a  license  tax  of  not  less  than  $1  nor 
more  than  $100.  Auction  duties  payable  to  the  county  are:  (1)  On 
sales  of  personal  property,  1J  per  cent;  (2)  on  sales  of  real  estate  or 
leasehold  interest  in  land,  one-half  of  1  per  cent.  Nonresident  trappers, 
hunters,  and  seiners  or  nctters  of  fish  pay  a  tax  of  $25  (formerly  $10). 
All  the  above  license  taxes  are  collected  by  the  tax  collector,  who  re- 
ceives 5  per  cent  commission,  which  is  paid  by  the  person  taxed. 

B.    FEES. 

Each  criminal  conviction  in  courts  of  record,  $3;  each  civil  suit  in 
courts  of  record,  $3;  each  writ  of  summons  and  writ  of  execution,  50 
cents;  each  certificate  of  record  in  any  recorder's  office,  except  mort- 
gages, 50  cents;  each  certificate  of  mortgage,  1.5  cents. 

Municipal  Revenues. 

a.   TAXES. 

I.    The  general  property  tax. 

1.  Base — 

The  property  included  and  the  method  of  assessment 
and  of  equalization  are  the  same  for  city,  town,  and 
school  purposes  as  for  the  state. 

2.  Rate— 

The  rate  for  each  school  district  is  determined  by 
popular  vote.  The  levy  is  made  by  the  county  court 
in  October  of  each  year. 

The  rate  for  cities  and  towns  shall  not  exceed  5  mills 
for  general  purposes  and  5  mills  for  debt  contracted 
before  1874. 

The  council  of  any  municipal  corporation  may  make 
out  and  certify  to  the  county  clerk  the  rate  of  taxa- 
tion levied  by  such  municipal  corporation. 

3.  Collection — 

Municipal  taxes  are  collected,  as  are  state  and 
county  taxes,  by  the  sheriff  who  is  ex  officio  county 
collector  and  paid  over  by  him  to  the  city  treasury. 


II.  Poll  tax. 

There  is  no  special  local  poll  tax.    The  school  dis- 
tricts, however,  receive  an  apportionment  of  the  county 
poll  tax. 
Ill  and  IV.   Inheritance  tax  and  corporation  taxes. 

The  municipalities  do  not  share  in  the  inheritance 
tax  nor  in  the  special  corporation  taxes  on  insurance 
companies. 
V.  Business  taxes  and  licenses. 

Municipal  corporations  may  license,  regulate,  tax,  or  suppress  ordi- 
naries, hawkers,  peddlers,  brokers,  pawnbrokers,  money  changers,  intel- 
ligence offices,  public  masquerade  balls,  street  exhibitions,  sparring 
exhibitions,  dance  houses,  fortune  tellers,  pistol  galleries,  corn  doctors; 
lock,  private,  and  venereal  hospitals;  museums  and  menageries,  eques- 
trian performances,  horoscopic  views,  lung  testers,  muscle  developers, 
magnifying  glasses,  billiard  tables  or  any  other  tables  or  instruments 
used  for  gaming;  theatrical  or  otner  exhibitions,  shows,  and  amuse- 
ments; tippling  houses  and  dramshops;  or  any  gift  enterprises,  and 
may  suppress  prize  fights,  dog  fights,  chicken  cockfights,  gaming,  or 
gambling  houses.  But  the  licensing  of  saloons  is  dependent  upon  a 
local  option  law.  Municipal  corporations  also  have  the  power  to  tax 
public  auctioneers  not  less  than  $5  nor  more  than  $100  per  annum, 
and  to  impose  a  tax  on  dogs  and  other  domestic  animals  not  included 
in  the  list  of  taxable  property. 

School  Revenues. 

The  proceeds  of  all  lands  granted  by  the  United 
States  to  the  state;  also  all  moneys,  stocks,  bonds, 
land,  and  other  property  belonging  to  any  fund  for 
education  at  the  time  of  the  passage  of  the  act  (Decem- 
ber, 1875);  also  the  net  proceeds  of  all  sales  of  lands 
and  other  property  and  effects  that  may  accrue  to 
the  state  by  escheat,  or  from  sales  of  estrays,  or 
from  unclaimed  dividends,  or  distributive  share  of 
deceased  persons;  also  10  per  cent  of  the  net  proceeds 
of  the  sale  of  all  state  lands;  also  all  grants,  gifts,  or 
devises  that  are  made  to  the  state  are  to  be  invested 
in  the  common  school  fund. 

The  per  capita  tax  and  the  special  school  levy  on 
property  are  treated  as  current  revenue  for  the  sup- 
port of  common  schools.  A  tax  levy  sufficient  to  run 
the  schools  in  any  district  longer  than  three  months 
must  be  sanctioned  by  a  vote  of  the  electors  in  the 
school  district.  Such  vote  may  be  taken  at  any  law- 
ful meeting  at  which  not  less  than  five  electors  shall 
be  present.  But  such  tax  may  not  exceed  1  per  cent 
of  the  assessed  valuation. 


CALIFORNIA. 


California  depends  almost  entirely  upon  the  general 
property  tax  for  state,  county,  and  municipal  revenues. 

CONSTITUTIONAL    PROVISIONS. 
ARTICLE   XIII. 

Sec.  1.  All  property  in  the  state  not  exempt  under  the  laws  of  the 
United  States  shall  be  taxed  in  proportion  to  its  value,  to  be  ascertained 

1  This  compilation  is  based  mainly  upon  The  Revenue  Laws  of  the 
State  of  California,  in  force  April  1, 1901.  Compiled  by  the  Controller, 
Sacramento,  1901. 


as  provided  by  law.  The  word  "property"  is  declared  to  include 
moneys,  credits,  bonds,  stocks,  dues,  franchises,  and  all  other  matters 
and  things  capable  of  private  ownership:  Provided,  That  property  used 
for  free  public  libraries  and  free  museums,  growing  crops,  property  used 
exclusively  for  public  schools,  and  such  as  may  belong  to  the.  United 
States,  this  state,  or  to  any  county  or  municipal  corporation  within  this 
state  shall  be  exempt  from  taxation.  The  legislature  may  provide,  ex- 
cept in  case  of  credits  secured  by  mortgage  or  trust  deed,  for  a  deduc- 
tion from  credits  of  debts  due  to  bona  fide  residents  of  this  state. 

Sec.  1  J.  All  buildings  and  so  much  of  the  real  property  on  which  they 
are  situated  as  may  be  required  for  the  convenient  use  and  occupation 
of  said  buildings,  when  the  same  are  used  solely  and  exclusively  for  reli- 


TAXATION  AND  REVENUE  SYSTEMS— CALIFORNIA. 


661 


gious  worship,  shall  be  free  from  taxation;  provided,  that  no  building 
so  used  which  may  be  rented  for  religious  purposes  and  rent  received  by 
the  owner  therefor  shall  lie  exempt  from  taxation. 

Sec.  \l-  All  bonds  hereafter  issued  by  the  state  of  California  or  by 
any  county,  city  and  county,  municipal  corporation,  or  district  (includ- 
ing school,  reclamation,  and  irrigation  districts)  within  said  state  shall 
be  exempt  from  taxation. 

Sec.  2.  Land  and  the  improvements  thereon  shall  be  separately  as- 
sessed. Cultivated  and  uncultivated  land  of  the  same  quality  and  simi- 
larly situated  shall  be  assessed  at  the  same  value. 

Sec.  3.  Every  tract  of  land  containing  more  than  640  acres  and  which 
has  been  sectionized  by  the  United  States  Government  shall  be  assessed 
for  the  purposes  of  taxation  by  sections  or  fractions  of  sections.  The 
legislature  shall  provide  by  law  for  the  assessment  in  small  tracts  of  all 
lands  not  sectionized  by  the  United  States  Government. 

Sec.  4.  A  mortgage,  deed  of  trust,  contract,  or  other  obligation  by 
which  a  debt  is  secured  shall,  for  the  purposes  of  assessment  and  taxa- 
tion, be  deemed  and  treated  as  an  interest  in  the  property  affected 
thereby.  Except  as  to  railroad  and  other  quasi  public  corporations, 
in  case  of  debt  so  secured  the  value  of  the  property  affected  by  such 
mortgage,  deed  of  trust,  contract,  or  obligation,  less  the  value  of  such 
security,  shall  1h>  assessed  and  taxed  to  the  owner  of  the  property,  and 
the  value  of  such  security  shall  be  assessed  and  taxed  to  the  owner 
thereof  in  the  county,  city,  or  district  in  which  the  property  affected 
thereby  is  situate.  The  taxes  so  levied  shall  be  a  lien  upon  the  property 
and  security,  and  may  be  paid  by  either  party  to  such  security;  if  paid 
by  the  owner  of  the  security,  the  tax  so  levied  upon  the  property  affected 
thereby  shall  liecome  a  part  of  the  debt  so  secured;  if  the  owner  of  the 
property  shall  pay  the  tax  so  levied  upon  such  security,  it  shall  consti- 
tute a  payment  thereon,  and,  to  the  extent  of  such  payment,  a  full  dis- 
charge thereof:  Provided,  That  if  any  such  security  or  indebtedness 
shall  lie  paid  by  any  such  debtor  or  debtors  after  assessment  and  before 
the  tax  levy,  the  amount  of  such  levy  may  likewise  be  retained  by  such 
debtor,  and  shall  be  computed  according  to  the  tax  levy  for  the  preced- 
ing year. 

Sec.  5.  Every  contract  hereafter  made  by  which  a  debtor  is  obli- 
gated to  pay  any  tax  or  assessment  on  money  loaned  or  on  any  mort- 
gage, deed  of  trust,  or  other  lien  shall,  as  to  any  interest  specified  therein, 
and  as  to  such  tax  or  assessment,  be  null  and  void. 

Sec.  6.  The  power  of  taxation  shall  never  be  surrendered  or  sus- 
pended by  any  grant  or  contract  to  which  the  above  shall  be  a  party. 

Sec.  7.  The  legislature  shall  have  the  power  to  provide  by  law  for 
the  payment  of  all  taxes  on  real  property  by  installments. 

Sec.  8.  The  legislature  shall  by  law  require  each  taxpayer  in  this  state 
to  make  and  deliver  to  the  county  assessor  annually  a  statement  under 
oath  setting  forth  specifically  all  the  real  and  personal  property  owned 
by  such  taxpayer  or  in  his  possession  or  under  his  control  at  twelve 
o'clock  meridian  on  the  first  Monday  of  March. 

Sec.  9.  A  state  board  of  equalization  consisting  of  one  member  from 
each  congressional  district  in  this  state,  as  the  same  existed  in  1879, 
shall  be  elected  by  the  qualified  electors  of  their  respective  districts  at 
the  general  election  to  be  held  in  the  year  1886  and  at  each  gubernato- 
rial election  thereafter,  whose  term  of  office  shall  be  four  years  and  whose 
duty  shall  be  to  equalize  the  valuation  of  the  taxable  property  in  the 
several  counties  of  the  state  for  the  purposes  of  taxation.  The  con- 
troller of  state  shall  be  ex  officio  a  member  of  the  board.  The  board  of 
supervisors  of  the  several  counties  of  the  state  shall  constitute  boards 
of  equalization  for  their  respective  counties,  whose  duty  it  shall  be  to 
equalize  the  valuation  of  the  taxable  property  in  the  county  for  the  pur- 
pose of  taxation:  Provided,  That  such  state  and  county  boards  of  equali- 
zation are  hereby  authorized  and  empowered,  under  such  rules  of  notice 
as  the  county  boards  may  prescribe  as  to  county  assessments  and  under 
such  rules  of  notice  as  the  state  board  may  prescribe  as  to  the  action 
of  the  state  board,  to  increase  or  lower  the  entire  assessment  roll  or  any 
assessment  contained  therein,  so  as  to  equalize  the  assessment  of  the 
property  contained  in  said  assessment  roll  and  make  the  assessment 
conform  to  the  true  value  in  money  of  the  property  contained  in  said 
roll;  provided,  that  no  board  of  equalization  shall  raise  any  mortgage, 


deed  of  trust,  contract,  or  other  obligation  by  which  a  debt  is  secured, 
money,  or  solvent  credits  above  its  face  value.  The  legislature  has 
power  to  redistrict  the  state  into  four  districts  and  to  provide  for  the 
election  of  members  of  the  state  board  of  equalization. 

Sec.  10.  All  property  shall  lie  assessed  in  the  county,  city  and  county, 
town,  township,  or  district  in  which  it  is  situated  in  the  manner  pre- 
scribed by  law.  The  franchise,  roadway,  roadbed,  rails,  and  rolling 
stock  of  all  railroads  operated  in  more  than  one  county  in  this  state 
shall  be  assessed  by  the  state  board  of  equalization  at  their  actual  value, 
and  the  same  shall  be.  apportioned  to  the  various  subdivisions  and  dis- 
tricts in  which  such  railroads  are.  located  in  proportion  to  the  number 
of  miles  of  railway  laid  therein. 

Sec.  11.  Income  taxes  may  l>e  assessed  to  and  collected  from  per- 
sons, corporations,  joint-stock  associations,  or  companies  resident  or 
doing  business  in  this  state  in  such  cases  and  amounts  and  in  such  man- 
ner as  shall  be  prescribed  by  law. 

Sec.  12.  The  legislature  shall  provide  for  the  levy  and  collection  of 
an  annual  poll  tax  of  not  less  than  two  dollars  on  every  male  inhabitant 
of  this  state  over  twenty-one  and  under  sixty  years  of  age,  except  pau- 
pers, idiots,  insane  persons,  and  Indians  not  taxed.  Said  tax  shall  be 
paid  into  the  state  school  fund. 

Sec.  12J.  Fruit  and  nut  bearing  trees  under  the  age  of  four  years 
from  the  time  of  planting  in  orchard  form,  and  grapevines  under  the  age 
of  three  years  from  the  time  of  planting  in  vineyard  form,  shall  be  ex- 
empt from  taxation,  and  nothing  in  this  article  shall  be  construed  as 
subjecting  such  trees  and  grapevines  to  taxation. 

ARTICLE   IX. 

Sec.  10.  All  property  held  in  trust  for  Leland  Stanford  Junior  Uni- 
versity may  be  exempted  by  special  act  from  state  taxation,  and  all 
personal  property,  the  Palo  Alto  farm,  as  described  in  the  endowment 
grant  of  the  trustees  of  the  university,  and  all  other  real  property  so 
held  and  used  by  the  university  for  educational  purposes  exclusively, 
may  be  similarly  exempted  from  county  and  municipal  taxation;  pro- 
vided, that  residents  of  California  shall  be  charged  no  tuition  fees  unless 
such  fees  be  authorized  by  act  of  the  legislature. 

Sec.  11.  Property  of  "The  California  School  of  Mechanical  Arts," 
having  its  school  buildings  located  in  the  city  and  county  of  San  Fran- 
cisco, is  made  exempt  from  taxation.  The  legislature  may  modify,  sus- 
pend, and  revive  at  will  the  exemption  from  taxation  so  given. 

ARTICLE   IV. 

Sec  25.  The  legislature  shall  not  pass  local  or  special  laws  in  any  of 
the  following  enumerated  cases,  that  is  to  say:  *  *  *  Tenth,  for 
the  assessment  or  collection  of  taxes;  *  *  *  thirteenth,  extending 
the  time  for  the  collection  of  taxes;  *  *  *  twentieth,  exempting 
property  from  taxation. 

ARTICLE   XI. 

Sec.  10.  No  county,  city,  town,  or  other  public  or  municipal  corpo- 
ration, nor  the  inhabitants  thereof,  nor  the  property  therein,  shall  be 
released  or  discharged  from  its  or  their  proportionate  share  of  taxes  to  be 
levied  for  state  purposes,  nor  shall  commutation  for  such  taxes  be  au- 
thorized in  any  form  whatsoever. 

Sec.  12.  The  legislature  shall  have  no  power  to  impose  taxes  upon 
counties,  cities,  towns,  or  other  public  or  municipal  corporations,  or 
upon  the  inhabitants  or  property  thereof,  for  county,  city,  town,  or 
other  municipal  purposes,  but  may,  by  general  laws,  vest  in  the  corpo- 
rate authorities  thereof  the  power  to  assess  and  collect  taxes  for  such 
purposes. 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  The  county  assessors,  elected  for  four  years. 

(2)  The  county  boards  of  supervisors,  who  act  ex  officio  as  county 
boards  of  equalization. 


662 


WEALTH,  DEBT,  AND  TAXATION. 


(3)  The  county  tax  collectors,  elected  for  four  yearn. 

(4)  The  state  board  of  equalization,  which  assesses  certain  railroad 
property  and  equalizes  assessments  between  counties,  and  is  composed 
of  the  state  controller  and  four  members  elected  by  districts. 

(5)  State  controller,  elected  for  four  years. 

Certain  cities  may  elect  their  own  assessors  and  tax  collectors  for 
municipal  taxation  only,  but  such  assessors  are  not  part  of  the  general 
administration. 

State  Revenues. 

a.  TAXES. 

I.   The  general  'property  tax. 
1.  Base — 

a.  The  property  included  and  exempt. — All  property 
in  the  state  not  exempted  by  law  is  subject  to  taxation. 

(1)  "Real  estate"  includes  the  possession  of,  claim  to,  ownership  of, 
or  right  to  the  possession  of  land;  all  mines  and  quarries,  and  all  timber 
belonging  to  individuals  or  corporations  which  are  on  the  land  of  the 
United  States,  and  all  rights  and  privileges  which  appertain  thereto; 
water  ditches,  and  wagon  and  turnpike  toll  roads.  A  mortgage  or 
other  lien  on  land  is,  for  purposes  of  taxation,  deemed  an  interest  in  the 
land. 

(2)  "Improvements"  on  land  include  all  buildings  and  fixtures  affixed 
to  land,  except  telephone  and  telegraph  lines,  and  all  fruit,  nut  bearing, 
or  ornamental  trees  and  vines  not  of  natural  growth,  except  fruit  and 
nut  trees  under  4  years  and  grapevines  under  3  years  of  age. 

(3)  "Personal  property"  includes  moneys,  credits,  bonds,  stocks, 
dues,  franchises,  and  everything  capable  of  private  ownership  not  in- 
cluded within  the  term  "real  estate."  "Credits"  are  those  solvent 
debts  that  are  unsecured  by  mortgage  owing  to  the  person  assessed;  but 
only  the  excess  thereof  over  debts  due  bona  fide  residents  of  the  state  is 
taxable.  In  California  domestic  corporations  are  taxed  on  their  prop- 
erty, and  their  stocks  and  bonds  are  not  taxable;  but  the  stocks  and 
bonds  of  foreign  corporations  are  taxable. 

(4)  The  law  exempts  from  taxation,  in  addition  to  public  property, 
fruit  trees  and  nut  bearing  trees  four  years  from  the  time  of  plant- 
ing in  orchard  form;  growing  crops;  grapevines  under  the  age  of  3 
years  from  the  time  of  planting  in  vineyard  form;  free  public  libraries 
and  museums;  churches;  and  the  property  of  Leland  Stanford  Junior 
University,  and  of  the  California  School  of  Mechanical  Arts. 

b.  Assessment. — All  property,  except  certain  prop- 
erty of  railroads,  is  assessed  annually  for  state  and 
county  purposes  by  the  county  assessors.  The  assess- 
ment refers  to  noon  of  the  first  Monday  in  March.  It 
is  made  on  the  basis  of  a  sworn  statement  to  be  ob- 
tained by  the  assessor  from  the  taxpayers.  The  as- 
sessor makes  the  valuation  of  both  real  and  personal 
property  at  its  true  cash  value,  and  none  is  required 
from  the  taxpayer.  The  penalty  for  refusal  to  furnish 
a  sworn  statement  is  the  loss  of  all  rights  before  the 
county  board  of  equalization. 

The  assessment  of  the  franchise,  roadway,  roadbed, 
rails,  and  rolling  stock  of  all  railroads  operated  in 
more  than  one  county  is  made  by  the  state  board  of 
equalization  and  apportioned  among  the  counties  and 
their  subdivisions  in  proportion  to  miles  of  rails  laid. 

The  assessment  as  above  made  is  the  only  basis  of 
taxation  for  the  county,  school,  and  road  districts; 
but  certain  cities  and  towns  may  have  a  separate  valu- 
ation as  the  basis  of  city  taxes. 


Land  and  "improvements"  are  assessed  separately.  Cultivated  and 
uncultivated  land  of  the  same  quality  and  similarly  situated  are  assessed 
at  the  same  value. 

In  the  case  of  debts  secured  by  land,  except  of  railroads  and  other 
quasi  public  corporations,  the  value  of  the  land,  less  the  value  of  the 
security,  is  assessed  to  the  mortgagor,  and  the  value  of  the  security  is 
assessed  to  the  mortgagee. 

Lands  sold  by  the  state  or  the  United  States  for  which  no  patent  has 
been  issued  are  assessed  the  same  as  other  lands,  but  the  owner  is  enti- 
tled to  a  deduction  equal  to  the  amount  due. 

Lands  are  assessed  in  parcels  not  exceeding  640  acres,  and  tracts  of 
land  surveyed  by  the  United  States  Government  are  assessed  by  sec- 
tions or  fractions  of  sections. 

Water  ditches  constructed  for  mining,  manufacturing,  or  irrigating 
purposes,  and  wagon  and  turnpike  toll  roads  are  assessed  as  real  estate 
at  a  rate  per  mile  for  that  portion  of  the  property  lying  within  each 
county. 

In  assessing  solvent  credits  not  secured  by  mortgage  a  deduction  is 
made  of  debts  due  to  bona  fide  residents  of  the  state. 

Deposits  in  savings  and  loan  corporations  are,  for  purposes  of  taxa- 
tion, deemed  an  interest  in  the  property  of  the  corporation  and  are  not 
assessed  to  the  depositor. 

No  assessment  is  made  of  shares  of  stock  in  any  corporation,  except 
national  banks.  The  statute  declares  that  shares  of  stock  possess  no 
intrinsic  value  over  the  actual  value  of  the  property  of  the  corporation, 
and  to  tax  them  also  would  be  double  taxation.  Shares  of  stock  in 
national  banks  are  assessed  to  the  shareholders  at  the  place  where  t  he 
bank  is  located  at  a  valuation  which  allows  for  a  deduction  from  the 
aggregate  capital  of  the  bank  of  real  estate  assessed  to  the  bank,  and 
includes  only  so  much  of  its  solvent  credits  as  exceed  its  debts  due  bona 
fide  residents  of  the  state. 

Telegraph  and  telephone  lines  are  described  in  the  same  manner  as 
real  estate,  but  assessed  as  personal  property  by  the  assessor  of  the 
county  at  a  rate  per  mile  for  such  portion  of  the  property  as  lies  within 
the  county. 

There  is  no  special  method  for  the  assessment  of  sleeping  car  and 
similar  transportation  companies. 

Vessels  that  are  required  to  be  registered,  except  ferryboats,  are 
assessed  in  the  county  where  registered,  enrolled,  or  licensed;  vessels 
which  are  registered  out  of  the  state,  but  ply  in  waters  within  the  state 
and  arc  owned  by  residents  of  the  state,  must  be  assessed  here. 

When  railroads  are  operated  in  more  than  one  county,  the  state  board 
of  equalization  assesses  that  part  of  the  property  used  in  operation 
which  is  of  a  general  state  character  and  difficult  of  localization,  as 
shown  above.  The  county  assessors  assess  the  depots,  stations,  shops, 
and  buildings  erected  on  the  space  covered  by  the  right  of  way  wherever 
the  same  are  situated.  The  assessment  made  by  the  state  board  is 
apportioned  among  the  counties  in  proportion  to  the  number  of  miles  of 
railway  laid  in  each  county.  The  board  of  supervisors  of  each  county 
apportions  its  share  of  the  assessment  made  by  the  state  board  to  each 
city,  town,  township,  school,  or  road  district  in  the  county. 

c.  Equalization. — The  board  of  equalization  of  each 
county  equalizes  the  assessment  between  individuals 
and  increases  or  lowers  any  valuation  contained  in  the 
roll  to  make  the  assessment  conform  to  the  true  value 
of  the  property  in  money,  and  in  general  revises  the 
list  for  the  county. 

The  state  board  of  equalization  increases  or  lowers 
the  assessment  roll  of  a  county  as  a  whole  by  com- 
paring the  roll  of  each  county  with  the  rolls  of  the 
others.  Individual  assessments  are  not  altered,  but  a 
percentage  is  added  to  or  deducted  from  the  valuation 
of  real  estate,  of  improvements,  or  of  personal  property 
for  the  countv. 


TAXATION  AND  REVENUE  SYSTEMS— CALIFORNIA. 


663 


2.  Rate— 

The  state  board  of  equalization  determines  the  rate 
to  be  levied  for  state  purposes.  It  must  be  such  a  rate 
as,  after  allowing  5  per  cent  for  delinquencies  and  costs 
of  collection,  will  raise  the  specific  amount  of  revenue 
directed  to  be  raised  by  the  legislature  for  state 
purposes. 

The  assessor  who  collects  the  taxes  upon  personal 
property  unsecured  by  real  estate  is  governed,  in 
determining  the  rate  of  such  taxation,  by  the  state  as 
well  as  by  the  local  rates  for  the  previous  year. 

3.  Collection — 

Except  for  certain  taxes  on  personal  property,  both 
state  and  county  taxes  are  collected  by  the  county  tax 
collector.     They  may  be   paid  in   two   installments. 
The  first  installment   includes  all  taxes  on  personal 
property  and  one-half  of  the  taxes  on  real  property,   ! 
becomes  due  the  second  Monday  in  October,  and  delin-  . 
quent  on  the  last  Monday  in  November.     The  remain-  j 
ing  one-half  of  the  taxes  on  real  property  is  payable 
the  first  Monday  in  January  and  delinquent  on  the 
last  Monday  in  April.     Penalties  of  15  per  cent  are  \ 
added  to  the  first  and  of  5  per  cent  to  the  second 
installment  for  delinquency,  with  5  per  cent  more  on 
the  first  if  not  paid  when  the  second  is  due,  and  there 
are  further  penalties  for  longer  delinquencies. 

Taxes  on  land  and  improvements  are  a  lien  on  the 
property  assessed,  and  taxes  on  personal  property  are 
a  lien  on  all  the  property,  real  and  personal,  of  the 
owner.  The  liens  attach  as  of  the  first  Monday  in 
March. 

Land  on  which  taxes  are  delinquent  is  sold  to  the 
state  by  operation  of  law  upon  publication  of  the  delin- 
quent list  in  June.  The  controller  may,  instead,  bring 
an  action  for  taxes  amounting  to  over  $300.  Such 
lands  are  redeemable  at  any  time  within  five  years  on 
payment  of  taxes,  penalties,  and  interest;  failing  re- 
demption, they  may  be  sold  by  the  state. 

.  Taxes  on  possessory  claims  to  land  and  on  personal  property  belong- 
ing to  persons  who  own  no  real  estate  to  secure  such  taxes  are  collected 
by  the  assessor  at  the  time  of  making  the  assessment 

All  taxes  on  railroads  operated  in  more  than  one  county  are  collected 
bv  the  state  controller.  All  but  the  state's  share  is  passed  into  the 
"  railroad  tax  fund  "  and  thence  distributed  to  the  counties. 

II.  Poll  tax. 

Every  male  inhabitant  of  the  state  over  2 1  and  under 
60  years  of  age,  except  paupers,  insane  persons,  and 
Indians  not  taxed,  is  liable  to  a  poll  tax  of  $2,  to  be 
collected  by  the  assessor,  who  retains  15  per  cent 
thereof  as  his  commission.  It  attaches  as  a  lien  to 
any  property  of  the  taxpayer  on  the  first  Monday  in 
March,  and  must  be  collected  between  that  date  and 
the  last  Monday  in  December.  If  not  paid  before  the 
first  Monday  in  July,  the  tax  becomes  $3.  If  not  paid 
by  the  last  Monday  in  December,  3J  per  cent  of  $3  is 
added.  After  the  first  Monday  in  January,  if  still 
unpaid,  it  is  collected  by  the  tax  collector  in  the  same 
manner  as  other  delinquent  taxes. 


III.  Inheritance  tax. 

(This  law  was  amended  in  1903  and  again  in  1905. 
The  last  amendment  was  sweeping,  and  carried  with  it 
a  direct  inheritance  tax.) 

All  property  over  $500  which  passes  by  will  or  by 
the  intestate  laws  of  the  state,  or  by  transfer  made  in 
contemplation  of  death  or  intended  to  take  effect  after 
death,  is  subject  to  a  collateral  inheritance  tax  when 
the  property  is  situated  in  the  state,  or  when  the  dece- 
dent was  a  resident  of  the  state.  Property  passing  to 
the  father,  mother,  husband,  wife,  lawful  issue,  son-in- 
law,  daughter-in-law,  adopted  child,  or  any  lineal 
descendant  or  ancestor  is  excepted.  Charitable,  be- 
nevolent, and  educational  societies,  though  they  are 
not  generally  exempt  from  taxation  in  California,  and 
also  societies  or  institutions  that  are  exempt  from  taxa- 
tion, as  Stanford  University  and  the  Lick  School,  are 
excepted.  Appraisement  of  the  estate  may  be  ordered 
by  the  court  when  probate  proceedings  are  pending. 
The  rate  of  tax  then  is  5  per  cent  on  the  market  value. 
The  administrator  is  required  to  deduct  the  tax  before 
delivering  the  property.  If  paid  within  six  months, 
5  per  cent  discount  is  allowed;  if  unpaid  for  eighteen 
months,  10  per  cent  interest  is  added. 

IV.  Corporation  taxes. 

Corporations  are  taxed,  under  the  general  property 
tax,  upon  all  corporate  property. 

Every  insurance  company  other  than  life,  not  incorporated  in  Cali- 
fornia, must  pay  annually  a  tax  of  2  per  cent  upon  the  amount  of 
gross  premiums  received  upon  its  business  done  in  the  state,  less  losses 
actually  paid  on  its  business  in  the  state,  reinsurance  in  domestic 
companies,  and  return  premiums. 

The  same  tax  is  laid  on  a  domestic  insurance  company  whose  busi- 
ness is  controlled  or  carried  on  for  a  foreign  company. 

Foreign  insurance  companies  doing  business  in  this  state  must  pay 
the  same  taxes,  licenses,  fees,  make  the  same  deposits  of  money  or 
securities,  and  be  subject  .to  such  other  regulations  as  are  imposed  by 
the  state  chartering  such  foreign  insurance  company  upon  California 
insurance  companies  doing  business  in  such  state. 

B.    FEES. 

All  fees  collected  by  the  secretary  of  state  are 
paid  into  the  state  treasury.  Of  each  monthly 
return,  $2,500  is  credited  to  the  state  library  fund, 
and  the  balance  is  paid  into  the  general  fund  of  the 
state.     The  fees  are  as  follows: 

Filing  articles  of  incorporation — capital  stock,  less  than  $25,000, 
$15;  capital  stock,  $25,000  to  $75,000,  $25;  capital  stock,  $75,000  to 
$200,000,  $.50;  capital  stock,  $200,000  to  $500,000,  $75;  capital  stock, 
$500,000  to  $1,000,000,  $100;  capital  stock,  $1,000,000  to  $1,500,000, 
$150.  Issuing  certificate  of  incorporation,  $3;  filing  amendments  and 
various  certificates,  $5;  claim  to  trade-mark,  $5;  passports,  $5:  record- 
ing miscellaneous  papers,  per  folio,  20  cents;  copies  of  records,  per  folio, 
20  cents. 

The  commissioner  of  insurance  charges  certain  fees:  For  filing  arti- 
cles of  incorporation,  $30;  annual  statement,  $20,  and  other  papers, 
$5;  for  copies,  per  folio,  20  cents.  (These  fees  are  paid  into  the  state 
treasury.)     From  every  life  insurance  agent,  $1  per  year. 

The  clerk  of  the  supreme  court  pays  the  fees  collected  by  him  into 
the  state  treasury — 80  per  cent  to  the  general  fund  and  20  per  cent  to 
the  supreme  court  library  fund.     They  are  as  follows: 


664 


WEALTH,  DEBT,  AND  TAXATION. 


Filing  transcript  on  appeal,  $10;  petition  for  rehearing,  $2.50; 
motion  to  dismiss  appeal,  $2.50;  petition  for  writs,  $7.50;  certificate 
of  admission  to  bar,  $10. 

The  register  of  the  state  land  office  or  the  surveyor-general  collects 
the  following  fees,  which  are  paid  into  the  general  fund  of  the  state 
treasury: 

Certificate  of  purchase  or  patent,  $3;  certifying  case  to  court,  $3; 
copies  of  papers,  per  folio,  10  cents;  each  application  for  public 
lands  must  be  accompanied  by  fee,  $5. 

C.    FINES    AND    PENALTIES. 

Fines  for  violation  of  a  state  law  are  paid  over  to 
the  county  treasurer,  but  forfeitures  and  fines  col- 
lected for  the  violation  of  any  city  ordinance  are  paid 
to  the  city  treasurer,  except  in  cities  of  the  lower 
grades. 

Fines  for  violation  of  the  game  laws  are  paid  into 
the  state  treasury  to  the  credit  of  the  game  preserva- 
tion fund. 

D.    INCOME    FROM    PUBLIC    PROPERTY. 

Lands  granted  to  the  state  for  school  purposes 
("  school  lands  ")  are  sold  at  the  rate  of  $1.25  per  acre, 
20  per  cent  payable  down  and  the  balance  bearing 
interest  at  7  per  cent. 

Swamp,  overflowed,  salt  marsh,  and  tide  lands  are 
sold  at  the  rate  of  $1  per  acre  on  the  same  terms  as 
school  lands. 

The  county  treasurer  pays  over  to  the  state  treas- 
urer all  money  that  he  receives  from  the  sale  of  school 
lands,  but  retains  all  money  that  arises  from  the  sale 
of  swamp  and  overflowed  lands,  which  he  places  to 
the  credit  of  the  "swamp  land  fund"  of  the  county. 

An  important  item  of  income  from  public  property 
is  the  collection  by  the  state  board  of  harbor  commis- 
sioners of  rent  of  wharves  and  fees  for  anchorage,  etc. 
The  funds  so  collected  are  paid  into  the  state  fund 
for  the  improvement  of  the  harbor  at  San  Francisco 
and  all  are  expended  for  that  purpose. 

County  Revenues. 

a.    TAXES. 

I.   The  general  property  tax. 

1.  Base — 

The  property  subject  to  taxation  and  the  methods 
of  assessment  and  of  equalization  are  the  same  for 
county  taxation  as  for  state. 

2.  Rate— 

The  board  of  supervisors  of  each  county  fixes 
annually  the  rate  of  county  taxes,  designating  the 
number  of  cents  on  each  $100  of  property  levied  for 
each  fund. 

There  is  a  limit  of  50  cents  on  each  $100  to  pay 
bonded  indebtedness. 

3.  Collection — 

The  method  of  collection  is  the  same  as  that  for 
state  taxes. 


II.  Poll  tax. 

The  board  of  supervisors  may  levy  annually,  on 
each  male  person  over  21  and  under  55  years  of  age  in 
each  road  district,  a  road  poll  tax  not  exceeding  $3. 
It  is  collected  by  the  county  assessor  in  the  same 
manner  as  the  state  poll  tax.  Thirty-five  per  cent 
may  be  apportioned  to  the  general  road  fund  of  the 
county  and  the  balance  to  the  districts  of  the  county 
from  which  collected,  to  be  expended  therein.  On 
notice  from  the  road  overseer,  employers  are  responsi- 
ble for  road  taxes  assessed  against  employees. 
Ill  and  IV.  Inheritance  tax  and  corporation  taxes^ 

There  are  no  inheritance  and  corporation  taxes  for 
the  county. 

V.  Business  taxes  and  licenses. 

Boards  of  supervisors  of  the  counties  of  the  state,  in 
the  exercise  of  their  police  powers,  have  power  to 
license  every  kind  of  business  not  prohibited  by  law, 
and  all  exhibitions  and  games  carried  on  in  the  county. 

The  supervisors  fix  the  rates  of  license  taxes  for  the 
county. 

It  is  the  duty  of  the  tax  collector  to  make  inquiry 
as  to  persons  liable  to  pay  any  license  in  his  county. 
He  collects  $1  fee  for  each  license  issued,  which  goes 
into  the  salary  fund  of  the  county. 

Licenses  are  classified  generally  with  regard  to 
amount  of  monthly  sales  or  valuation  of  the  business. 

The  licenses  are  as  follows: 

Auctioneers,  $25  to  $400  per  quarter;  brokers  of  notes  or  bonds,  $3 
to  $100  per  quarter;  billiard  tables  and  bowling  alleys,  $5  per  quarter; 
theaters,  $200  to  $300  per  quarter;  pawnbrokers,  $30  per  quarter; 
merchants,  $3  to  $150  per  quarter;  foreign  peddlers,  $15  to  $45  per 
quarter;  animals  for  propagation,  $10  to  $75  per  annum.  ("These 
entitle  the  holder  to  go  into  any  county  of  the  state  for  purpose  of  prop- 
agation without  further  license  or  expense.") 

Retail  liquor  licenses  are  from  $5  to  $40  per  month  for  sales  in 
quantities  less  than  one  quart. 

B.    FEES. 

The  county  clerk  collects  the  following  fees: 

Commencing  proceedings  in  superior  court,  $5;  filing  petition  for 
letters  of  administration,  $5;  filing  appearance  of  defendant,  $2;  copies 
of  records,  per  folio,  10  cents;  marriage  licenses,  $2. 

Other  fees  are  collected  by  the  sheriff  and  recorder. 

Salaried  county  officers  are  required  to  pay  over  to  the  treasurer 
all  fees  collected  by  them  for  the  performance  of  official  acts.  This 
law  has  been  repealed  as  respects  the  percentage  (15)  which  county 
assessors  are  authorized  to  retain  from  all  amounts  collected  by  them 
as  poll  taxes. 

Municipal  Revenues. 

A.    TAXES. 

I.    The  general  property  tax. 
1.  Base — 
The   property   subject    to    taxation   for   municipal 
revenues  is  the  same  as  that  for  state  and  county 
purposes.     The  assessment  made  by  the  county  as- 
sessor and  equalized  as  above  described  may  be  the 


TAXATION  AND  REVENUE  SYSTEMS— CALIFORNIA. 


665 


basis  of  taxation.     But  certain  cities  may  elect  to  have 
their  own  assessors  and  make  a  separate  valuation. 

2.  Rate— 

The  rate  is  fixed  by  the  municipal  authorities,  sub- 
ject to  a  general  limitation  that  it  may  not  exceed  $2 
on  each  $100,  but  most  city  charters  fix  lower  limits. 

3.  Collection — 

The  collection  may  be  as  for  state  taxes  or  by  local 
collectors,  which  is  usually  the  case  when  a  separate 
assessment  is  made. 

II,  III,  and  IV.  Poll   tax,   inheritance  tax,  and   cor- 
poration taxes. 
There  are  no  municipal  poll,  inheritance,  or  corpo- 
ration taxes. 

V.  Business  taxes  and  licenses. 

The  legislative  bodies  of  incorporated  cities  and 
towns  have  the  same  power  to  license  all  kinds  of 
business  and  exhibitions  as  have  the  supervisors  of 
counties.  In  addition  to  the  county  license,  the  city 
license  must  be  procured  as  required  by  its  ordinance 
under  its  charter. 

F.    SPECIAL    ASSESSMENTS. 

Whenever  the  owners  of  a  major  part  of  the  property 
fronting  on  any  street  desire  to  improve  such  street  by 
paving,  constructing  sewers,  or  otherwise,  the  mayor 
and  council  may  make  such  improvement  at  the 
expense  of  all  the  owners  of  property  on  the  street, 
the  cost  of  which  is  assessed  in  proportion  to  the  num- 
ber of  feet  owned  by  each.  Town  trustees  may 
order  such  improvements  in  the  face  of  unanimous 
objection  by  the  abutting  property  owners. 

School  Revenues. 

The  superintendent  of  schools  in  each  county  appor- 
tions all  state  and  county  school  moneys  to  the  various 
districts.  The  state  school  fund  may  be  used  for  no 
other  purpose  than  for  the  payment  of  salaries  of 
teachers  of  primary  and  grammar  schools. 

The  board  of  supervisors  of  every  county  must 
levy  annually  a  county  school  tax,  the  maximum  rate 
of  which  must  not  exceed  50  cents  on  each  SI 00  of 
taxable  property  in  the  county,  nor  the  minimum  rate 
be  less  than  sufficient  to  raise  the  amount  estimated 
as  necessary  by  the  county  superintendent. 

The  state  board  of  equalization  annually,  at  the 
time  other  state  taxes  are  levied,  levies  a  tax  of 
as  many  cents  on  each  $100  of  value  of  taxable 
property  in  the  state  as  will  produce  a  net  sum  equal 
to  the  amount  directed  by  the  legislature  to  be  raised 


by  ad  valorem  tax  for  school  purposes.  This  is  col- 
lected as  a  part  of  the  state  tax  described  above. 

All  state  school  moneys  are  apportioned  by  the 
superintendent  of  public  instruction  to  the  several 
counties  in  proportion  to  the  number  of  children 
shown  by  the  school  census. 

Every  city  or  incorporated  town,  unless  subdivided 
by  the  legislative  authority  thereof,  constitutes  a 
separate  school  district.  School  trustees,  three  in 
number,  are  elected  annually.  In  cities  they  are 
called  boards  of  education. 

The  board  of  school  trustees  may  in  any  year  call  an 
election  and  submit  to  the  electors  of  the  district  the 
question  of  the  raising  of  a  tax  to  furnish  additional 
school  facilities,  or  to  maintain  or  build  schoolhouses. 
The  board  of  supervisors  then  levies  the  tax  upon  the 
district  at  the  time  of  levying  the  county  taxes. 

The  maximum  rate  of  tax  levied  by  a  district  in  any 
one  year  for  building  purposes  must  not  exceed  70 
cents  on  each  SI 00,  and  for  other  school  purposes,  30 
cents. 

As  stated  above,  the  proceeds  of  the  poll  tax  are 
paid  into  the  state  school  fund. 

Road  Districts. 

Road  districts  may  be  established  by  the  board  of 
supervisors  of  a  county,  and  on  petition  the  board  may 
call  an  election  in  regard  to  a  special  tax.  The  super- 
visors compute  the  levy  and  collect  with  the  county 
taxes,  the  tax  so  voted. 

Reclamation  Districts. 

The  owners  of  any  body  of  swamp,  overflowed,  salt 
marsh,  or  tide  lands  may,  by  petition  to  the  board  of 
supervisors,  form  a  reclamation  district,  and  those 
owning  the  greater  part  of  the  acreage  may  adopt  by- 
laws to  govern  their  affairs.  A  board  of  three  trustees 
is  elected  which  recommends  plans.  The  board  of 
supervisors  appoints  three  commissioners  to  assess 
upon  the  land  situated  in  the  district  a  charge  propor- 
tionate to  the  expense  and  benefits  conferred. 

Irrigation  districts  may  be  formed  and  assessments 
may  be  made  for  the  completion  of  irrigation  works. 
The  question  as  to  the  advisability  of  levy  and  the 
amount  of  such  levy  is  submitted  to  a  vote  of  the 
electors  of  the  district.  The  assessor  of  the  district 
prepares  a  list  of  all  property  within  the  district  and 
this  is  equalized  by  the  board  of  directors.  The  board 
of  directors  then  levies  the  assessment.  The  tax 
becomes  a  lien,  and  property  may  be  sold  for  delinquent 
taxes. 


666 


WEALTH,  DEBT,  AND  TAXATION. 


COLORADO. 


Prefatory  note. — As  a  result  of  the  legal  entanglements  in  which 
the  revenue  laws  of  Colorado  were  involved  during  the  collection  of 
the  revenues  for  the  fiscal  year  ending  November  30, 1902,  to  which  the 
census  returns  apply,  there  is  some  doubt  as  to  the  provisions  in  force 
during  that  year.  The  following  statement  will  show  the  grounds  for 
this  doubt: 

The  general  revenue  laws  of  Colorado,  dating  from  April  13,  1891, 
were  extensively  revised  by  an  act  passed  April  5,  1901.  One  of  the 
most  important  features  of  this  act  was  the  creation  of  a  new  board  for 
the  assessment  of  railroads  and  other  public  service  corporations,  and 
on  account  of  this  provision  it  was  immediately  takeu  into  court.  Much 
litigation  followed.  In  the  course  of  this  litigation  the  law  was  twice 
declared  unconstitutional,  although  not  by  any  appellate  court.2  A 
special  session  of  the  legislature  was  culled  by  the  governor  in  January, 
1902,  and  in  March  of  that  year  a  new  revenue  law  was  passed,  but  the 
provisions  of  this  law  did  not  apply  to  the  collections  made  in  the  census  I 
year.  The  assessment  made  in  1901,  beginning  in  January  and  ending, 
save  as  to  equalization,  in  May,  and  applying  to  property  as  it  stood 
on  April  1,  1901,  was  the  basis  upon  which  taxes  payable  in  February 
and  July,  1902,  were  collected.  But  on  account  of  the  legal  entangle- 
ments that  part  of  the  assessment  made  under  the  law  of  1901  which 
applied  to  the  property  of  railway  companies,  sleeping,  palace,  or  other 
car  companies,  and  telegraph  and  telephone  companies,  was  treated  as 
null  and  void,  and  an  assessment  made  on  these  properties  by  the  state 
board  of  equalization  revising  that  of  the  state  board  of  assessors, 
under  the  provisions  of  the  law  of  1891  was  legalized  by  the  legislature  i 
in  1902  as  the  legal  assessment  for  the  year  1901.  This  assessment  was 
further  contested  by  the  companies.  The  levy  on  other  property 
assessed  under  the  same  law  does  not  appear  to  have  been  affected  by 
the  litigation. 

Hence  part  of  the  taxes  collected  in  1902  were  under  the  law  of  1891 
and  part  under  that  of  1901. 

In  order  to  avoid  the  confusion  that  would  arise  from  an  attempt  to 
show  only  the  provisions  in  force  at  the  time  of  the  assessment  in  1901, 
the  law  of  1902  has  been  followed  throughout  this  analysis.  The  parts 
of  that  law  which  were  new  are  indicated  by  the  note  "since  1902." 

Colorado  depends  mainly  upon  the  general  property 
tax  administered  for  both  state  and  local  purposes  by 
county  officials,  although  certain  large  corporations 
are  assessed  by  a  state  board. 

CONSTITUTIONAL    PROVISIONS. 
ARTICLE   IX. 

Sec.  5.  The  public  school  fund  of  the  state  shall  consist  of  the  pro- 
ceeds of  such  lands  as  have  heretofore  been,  or  may  hereafter  be, 
granted  to  the  state  by  the  General  Government  for  educational  pur- 
poses; all  estates  that  may  escheat  to  the  state;  also  all  other  grants, 
gifts,  or  devises  that  may  be  made  to  this  state  for  educational  purposes. 

article  x. 

Sec.  2.  The  general  assembly  shall  provide  by  law  for  an  annual  tax, 
sufficient,  with  other  resources,  to  defray  the  estimated  expenses  of  the 
state  government  for  each  fiscal  year. 

1  This  compilation  is  derived  mainly  from  the  following  sources: 
Mills,  Annotated  Statutes  of  Colorado,  vols.  1  and  2,  being  the  laws 

down  to  1891;  volume  3  (supplement),  embracing  all  changes  down  to 
1896,  and  volume  3,  revised,  1896-1904.  Published  in  Denver,  1891- 
1904. 

Session  Laws  of  1901,  chapter  94. 

Taxation  in  Colorado,  a  pamphlet  published  by  Prof.  J.  E.  Le  Ros- 
signol  of  the  University  of  Denver. 

2  See  3  Mills  (rev.),  sec.  3764,  editorial  note. 


Sec.  3.  All  taxes  shall  be  uniform  upon  the  same  class  of  subjects 
within  the  territorial  limits  of  the  authority  levying  the  tax,  and 
shall  be  levied  and  collected  under  general  laws,  which  shall  provide 
such  regulations  as  shall  secure  a  just  valuation  for  taxation  of  all  prop- 
erty, real  and  personal:  Provided,  That  mines  and  mining  claims  bear- 
ing gold,  silver,  and  other  precious  metals  (except  the  net  proceeds  and 
surface  improvements  thereof)  shall  be  exempt  from  taxation  for  the 
period  of  ten  years  from  the  date  of  the  adoption  of  this  constitution, 
and  thereafter  may  be  taxed  as  provided  by  law:  And  provided  further, 
That  the  household  goods  of  even*  person  being  the  head  of  a  family, 
to  the  value  of  two  hundred  dollars,  shall  be  exempt  from  taxation. 
Ditches,  canals,  and  flumes  owned  and  used  by  individuals  or  corpora- 
tions for  irrigating  lands  owned  by  such  individuals  or  corporations,  or 
the  individual  members  thereof,  shall  not  1*  separately  taxed  so  long 
as  they  shall  be  owned  and  used  exclusively  for  such  purpose.  (Amend- 
ment adopted  1880.) 

Sec.  4.  The  property,  real  and  personal,  of  the  state,  counties,  cities, 
towns,  and  other  municipal  corporations,  and  public  libraries,  shall  l>e 
exempt  from  taxation. 

Sec.  5.  Lots  with  buildings  thereon,  if  said  buildings  are  used  solely 
and  exclusively  for  religious  worship,  for  schools,  or  for  strictly  char- 
itable purposes,  also  cemeteries  not  used  or  held  for  private  or  corporate 
profit,  shall  be  exempt  from  taxation,  unless  otherwise  provided  by 
general  law. 

Sec.  6.  All  laws  exempting  from  taxation  property  other  than  that 
hereinbefore  mentioned  shall  be  void. 

Sec.  7.  The  general  assembly  shall  not  impose  taxes  for  the  purposes 
of  any  county,  city,  town,  or  other  municipal  corporation,  but  may  by 
law  vest  in  the  corporate  authorities  thereof,  respectively,  the  power 
to  assess  and  collect  taxes  for  all  purposes  of  such  corporation. 

Sec.  8.  No  county,  city,  town,  or  other  municipal  corporation,  the 
inhabitants  thereof,  nor  the  property  therein,  shall  be  released  or  dis- 
charged from  their  or  its  proportionate  share  of  taxes  to  be  levied  for 
state  purposes. 

Sec.  9.  The  power  to  tax  corporations  and  corporate  property,  real 
and  personal,  shall  never  be  relinquished  or  suspended. 

Sec.  10.  All  corporations  in  this  state,  or  doing  business  therein, 
shall  be  subject  to  taxation  for  state,  county,  school,  municipal,  and 
other  purposes,  on  the  real  and  personal  property  owned  or  used  by 
them  within  the  territorial  limits  of  the  authority  levying  the  tax. 

Sec.  11.  The  rate  of  taxation  on  property,  for  state  purposes,  shall 
never  exceed  six  mills  on  each  dollar  of  valuation,  and  whenever  the 
taxable  property  within  the  state  shall  amount  to  one  hundred  million 
dollars,  the  rate  shall  not  exceed  four  mills  on  each  dollar  of  valuation; 
and  whenever  the  taxable  property  within  the  state  shall  amount  to 
three  hundred  million  dollars,  the  rate  shall  never  thereafter  exceed  four 
mills  on  each  dollar  of  valuation,  unless  a  proposition  to  increase  such 
rate,  specifying  the  rate  proposed  and  the  time  during  which  the  same 
shall  be  levied,  be  first  submitted  to  a  vote  of  such  of  the  qualified  elect- 
ors of  the  state  as  in  the  year  next  preceding  such  election  shall  have 
paid  a  property  tax  assessed  to  them  within  the  state,  and  a  majority 
of  those  voting  thereon  shall  vote  in  favor  thereof,  in  such  manner  as 
may  be  provided  by  law. 

Sec.  15.  There  shall  lie  a  state  board  of  equalization,  consisting  of 
the  governor,  state  auditor,  state  treasurer,  secretary  of  state,  and 
attorney-general:  also,  in  each  county  of  this  state,  a  county  lx>ard  of 
equalization,  consisting  of  the  board  of  county  commissioners  of 
said  county.  The  duty  of  the  state  board  of  equalization  shall  lie  to 
adjust  and  equalize  the  valuation  of  real  and  personal  property  among 
the  several  counties  of  the  state.  The  duty  of  the  countv-  board  of  equal- 
ization shall  be  to  adjust  and  equalize  the  valuation  of  real  and  personal 
property  within  their  respective  counties.  Each  board  shall  also  per- 
form such  other  duties  as  may  be  prescribed  by  law. 


TAXATION  AND  REVENUE  SYSTEMS— COLORADO. 


667 


ARTICLE   XI. 

Sec.  4.  (Provides  a  tax  for  debt  purposes.) 
OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  The  county  assessors,  elected  for  a  term  of  two  years. 

(2)  The  county  treasurers,  elected  for  a  term  of  two  years,  who  col- 
lect the  taxes. 

(3)  The  county  commissioners,  three  in  each  county  (five  in  Den- 
ver), elected  for  a  hill  term  of  four  years,  who  act  as  county  Ixmrd  of 
equalization. 

(4)  The  state  board  of  equalization,  composed  of  the  governor,  state 
auditor,  state  treasurer,  secretary  of  state,  and  attorney-general. 

(5)  Under  the  law  of  1901  there  was  to  be  a  state  board  of  assessors, 
thirteen  in  number,  chosen  by  the  assessors  from  among  their  own  num- 
ber. This  board  was  to  make  the  assessment  of  certain  public  service 
corporations.  It  was  held  unconstitutional  and  not  reenacted  in  the 
law  of  1902 

State  Revenues. 

a.   TAXES. 

I.   The  general  property  tax. 
1.  Base — 

a.  The  property  included  and  exempt. — -All  property 
not  expressly  exempt  by  law  is  subject  to  taxation. 
This  is  to  include  tangible  and  intangible  property 
and  the  money  of  nonresidents,  kept,  used,  loaned, 
and  invested  within  the  state  for  profit. 

(1)  "  Real  estate"  includes  all  lands  or  interests  in  land;  all  mines, 
minerals,  and  quarries,  and  rights  and  privileges  appertaining  thereto, 
also  improvements,  including  buildings,  water  rights,  structures, 
fixtures,  and  fences. 

(2)  "  Personal  property  "  includes  everything  subject  to  ownership, 
whether  tangible  or  intangible,  not  included  in  real  estate. 

Debts  may  be  deducted  from  credits. 

(3)  Where  property  is  mortgaged  it  is  to  be  taxed  as  a  unit  at  the 
value  of  the  property  pledged  and  the  mortgage  as  such  is  not  to  be 
assessed.     (Since  1901.) 

(4)  The  following  classes  of  property,  in  addition  to  public  property, 
are  exempt:  Public  libraries;  churches,  schools,  and  charity  buildings 
and  the  land  they  occupy;  cemeteries;  household  goods  to  the  value  of 
$200;  and  irrigation  works  used  exclusively  for  irrigating  owners' 
lands 

(5)  Special  franchises  are  classed  as  intangible  property.  (Enacted 
1902.) 

(6)  Stock  in  corporations,  except  banks,  which  are  taxed  on  their 
property,  is  not  taxable  to  the  owner 

b.  Assessment. — Property  is  assessed  by  the  counts- 
assessors,  on  the  basis  of  returns  made  by  the  tax- 
payers. Under  the  laws  of  1891  and  1901  the  assess- 
ment referred  to  the  1st  of  May;  under  that  of  1902, 
to  the  1st  of  April.  The  assessor  determines  the 
value  and  may  examine  the  taxpayer  under  oath. 

Failure  to  make  return,  or  false  return,  if  it  results 
in  evasion  of  taxes  involved,  under  the  law  of  1891, 
incurs  a  penalty  of  from  $100  to  $1,000,  to  be  recovered 
by  the  county  commissioners  in  any  court  of  compe- 
tent jurisdiction.  False  returns  on  mines  may  be 
prosecuted  as  for  perjury. 


Property  is  listed  and  valued  each  year,  and  is  to 
be  assessed  at  its  full  cash  value. 

The  average  amount  of  money  and  average  value  of  merchandise 
held  throughout  year  is  assessed. 

Under  the  old  law  (1891)  the  state  board  of  equalization  was  to  as- 
certain the  true  value  of  the  property  necessary  to  operation  of  railway, 
telegraph,  telephone,  and  sleeping  car  or  other  palace  car  companies, 
by  any  method  which  seemed  proper,  and  to  apportion  the  valuation 
made,  on  the  basis  of  mileage.  The  law  of  1901,  which  was  held  to 
be  unconstitutional,  established  the  unit  rule,  added  fast  freight  and 
express  companies  to  the  list,  and  transferred  the  assessment  to  the 
state  board  of  assessors.  The  law  of  1902  left  the  unit  rule,  but  re- 
stored the  assessment  to  the  state  board  of  equalization. 

Corporations  doing  business  in  more  than  one  count}'  (other  than 
those  assessed  by  the  state  lward  of  equalization)  make  their  returns  to 
the  state  auditor  and  the  intangible  property  is  valued  by  the  assessors, 
and  is  apportioned  among  the  counties  in  proportion  as  their  tangible 
property.  (Enacted  1902.)  The  law  of  1901  made  a  similar  pro>  uion, 
but  left  the  assessment  and  apportionment  to  the  assessor  of  that  county 
where  the  majority  of  the  tangible  property  was  located,  an  unconsti- 
tutional proceeding. 

Bank  deposits  are  assessed  as  credits,  but  are  not  to  be  assessed  at 
the  value  on  April  1,  but  at  the  average  amount  within  and  without 
the  state  during  the  year.     (Enacted  in  1901;   reenacted  in  1902.) 

Building  and  loan  associations  are  assessed  on  surplus  of  property 
and  credits  over  debts  and  shares.     (All  laws.) 

By  a  procedure  inaugurated  in  1899  and  continued  with  modifications 
in  the  laws  of  1901  and  1902  mines  are  divided  into  two  classes, 
producing  and  nonproducing.  In  the  law  of  1902  a  producing  mine 
is  defined  as  one  yielding  $5,000  or  more  gross  per  annum.  Such 
mines  when  yielding  gold,  silver,  lead,  copper,  or  other  precious  metals 
are  assessed  at  one-fourth  the  gross  product  unless  that  be  less  than  the 
net  product,  in  which  case  the  latter  rules;  but  surface  improvements 
and  machinery  are  assessed  separately.  Mines  of  iron,  coal,  and 
asphaltum,  and  quarries  are  assessed  as  other  property.  Xonproducing 
mines  are  not  to  be  assessed  at  a  higher  rate  per  acre  than  the  lowest 
producing  mine  in  the  same  location. 

Shares  of  capital  stock  in  banks  (including  national  banks)  are 
assessed  where  the  bank  is  located  and  the  bank  is  made  the  agent  of 
the  stockholders  for  the  payment  of  the  tax,  returns  of  assessments,  etc. 

Migrating  cattle  may  be  assessed  at  any  time  of  year. 

c.  Equalization. — Under  the  old  law  the  county 
board  of  equalization  received  the  roll  from  the 
assessor  and  settled  complaints  as  to  individual 
assessment.  The  state  board  of  equalization  adjusted 
inequalities  between  counties.  The  essential  modifi- 
cation made  by  the  laws  of  1901  and  1902  was  the 
establishment  of  an  annual  meeting  of  the  assessors 
at  the  state  capitol  to  compare  and  correct  assess- 
ments. The  duty  of  the  state  board  is  mainly  the 
hearing  of  complaints,  and  the  county  board  has  been 
limited  in  its  powers  to  abating  excess  valuations  in 
"one  or  more  instances  in  a  given  class." 

Elaborate  procedure  is  established  for  the  adjust- 
ment  of  grievances.     If  the   assessed  valuation  ex- 
ceeds $7,500,   an  appeal  may  be  carried  up  to  the 
district  court. 
2.  Rate— 

The  rate  for  state  purposes  is  determined  by  the 
state  board  of  equalization;  it  is,  however,  fixed  by 
statute  at  4  mills  on  the  dollar,  when  no  lower  rate 
is     prescribed.     The     practice     prevails     of    levying 


668 


WEALTH,  DEBT,  AND  TAXATION. 


special  rates  for  specific  purposes,  state  institutions, 
and  the  like,  within  the  4-mill  limit. 
3.   Collection — 

Taxes  are  paid  to  the  county  treasurers,  who  are 
the  tax  collectors.  No  demand  is  necessary.  They 
are,  by  the  law  of  1902,  payable  as  formerly  in 
two  installments:  one-half  on  or  before  the  last  day 
of  February,  and  the  remainder  on  or  before  the  last 
day  of  July  in  the  year  following  the  assessment. 
The  penalty  for  delinquency  on  the  first  installment 
is  interest  at  1  per  cent  per  month  up  to  August  1, 
when  the  penalty  on  all  overdue  taxes  becomes 
interest  at  the  rate  of  15  per  cent  per  annum.  All 
taxes  are  a  permanent  lien  on  the  property  upon 
which  they  are  assessed  until  paid,  and  may  be  col- 
lected by  distraint  and  sale. 

Each  county  is  held  responsible  for  the  full  amount 
of  taxes  due  the  state. 

II.  Poll  tax. 

There  is  a  state  poll  tax  of  $1  per  annum  on  each 
male  inhabitant  over  21,  except  active  members  of 
the  militia.  If  not  paid  prior  to  August  1,  it  becomes 
delinquent  and  bears  interest  at  the  rate  of  15  per 
cent  per  annum  up  to  December  30,  when  it  may  be 
collected  by  distraint.  It  is  levied  by  the  county 
commissioners  at  the  time  of  making  the  general  tax 
levy. 

III.  Inheritance  tax. 

(Introduced  by  the  revenue  law  of  1902.) 
All  property,  real,  personal,  or  mixed,  belonging 
to  a  resident  or  within  the  state,  which  shall  pass  by 
will  or  by  the  intestate  laws  of  the  state  to:  (1)  Father, 
mother,  husband,  wife,  child,  brother,  sister,  wife  or 
widow  of  a  son,  husband  of  a  daughter,  or  any  child 
or  adopted  child,  is  taxed  2  per  cent  of  each  share,1 
provided,  that  $10,000  of  any  such  estate  be  exempt; 

(2)  uncle,  aunt,  niece,  nephew,  or  any  lineal  descendant, 
3  per  cent  of  the  clear  market  value  of  each  share; 

(3)  others,  all  shares  1  of  less  than  $500  are  exempt; 
shares  '  of  $10,000  and  less  are  taxed  3  per  cent;  of 
$10,000  to  $25,000,  4  per  cent;  of  $25,000  to  $50,000, 
5  per  cent;  of  over  $50,000,  6  per  cent.  Life  estates 
are  exempt. 

IV.  Corporation  taxes. 

There  are  no  corporation  taxes  proper  in  Colorado. 

But  insurance  companies  pay  2  per  cent  on  gross  premiums. 

The  corporations  are  all  taxed  on  their  property 
under  the  general  property  tax. 

An  annual  license  tax  on  corporations  was  estab- 
lished in  1902,  but  on  account  of  the  insignificant 
rates  charged  this  has  been  classed  under  business 
licenses. 

1  The  statute  reads  "estates,"  but  has  been  interpreted  by  the  courts 
to  mean  "shares."     Burns  v.  Elder,  77,  page  853. 


V.  Business  taxes  and  licenses. 

Every  person,  company,  or  corporation  selling  any  malt,  vinous,  or 
spirituous  liquors  shall  pay  a  license  fee  of  $25  per  annum  in  advance 
for  each  saloon,  restaurant,  hotel,  club,  drug  store,  liquor  store,  or 
other  place  where  any  such  liquors  shall  be  sold.  This  fee  shall  be 
paid  to  the  state  treasurer  and  enforced  by  all  constables,  sheriffs, 
and  police  officers.  (Enacted  in  1902.) 

Domestic  corporations  having  capital  stock  valued  at  over  $25,000 
shall  pay  to  the  state  auditor  an  annual  license  tax  amounting  to  2 
cents  on  each  $1,000  of  capital  stock  (after  January  1,  1905,  to  be 
paid  to  secretary  of  state).     (Since  1902;  in  1901,  5  cents.) 

Foreign  corporations  doing  business  in  Colorado:  4  cents  per  $1,000 
of  capital  stock,  but  if  par  value  of  each  share  is  less  than  $1,  2J  cents 
per  1,000  shares;  payable  to  state  auditor  until  January  1,  190.5, 
then  to  secretary  of  state.     (Since  1902.) 

Insurance  companies,  not  capitalized,  pay  a  tax  of  $1  per  $1,000  on 
gross  premiums  collected  in  the  state.     (Since  1902.) 

B.    FEES. 

For  filing  articles  of  incorporation,  payable  to  secretary  of  state: 
Domestic  corporations. — Capital  stock  not  exceeding  $50,000,  $20, 
and  20  cents  for  each  thousand  in  excess  and  for  each  thousand 
increase;  filing  amendments  to  charter,  $5.  Foreign  corporations. — 
As  above,  but  $30,  and  30  cents  in  place  of  $20  and  20  cents. 
Foreign  corporations  not  American. — Filing  copy  of  foreign  law,  $5. 
For  filing  annual  reports,  $5;  but  ditch  companies  pay  only  $1; 
corporations  not  for  profit,  $1;  corporations  with  capital  stock  less 
than  $10,000,  $1.  A  fee  of  $5  is  paid  to  the  state  board  of  pharmacy 
for  becoming  a  registered  pharmacist;  renewal,  $2. 

County  Revenues. 

a.   TAXES. 

I.  The  general  property  tax. 

1.  Base — 

The  property  included  and  the  methods  of  assess- 
ment and  of  equalization  are  the  same  for  county 
taxation  as  for  state. 

2.  Rate — 

The  rate  for  the  counties  of  each  class  is  determined 
by  the  county  commissioners  within  the  following 
limits : 

In  class  1  the  limit  for  general  purposes  is  3  mills;  in  class  2, 
6  mills;  in  class  3,  7$  mills;  in  class  4,  8J  mills;  in  class  5,  10J  mills; 
in  class  6,  12  mills;  in  class  7,  15  mills;  in  class  8,  16  mills;  in  class 
9,  20  mills;  in  class  10,  25  mills. 

But  any  county  may  levy  such  rate  as  it  may  see  fit  for  the  erecting, 
maintaining,  repairing,  leasing,  or  renting  of  county  buildings,  for  roads 
and  bridges,  for  bonds  and  interest  thereon  or  judgment  bonds  and 
interest  thereon,  and  for  school  purposes. 

County  commissioners  are  to  include  in  their  annual 
tax  levy  a  levy  for  schools  within  the  county  of  at 
least  2  and  not  over  5  mills. 

3.  Collection — 

County  taxes  are  collected,  as  are  state  taxes,  by 
the  county  treasurers. 

II,  III,  and  IV.  Poll  tax,  inheritance  tax,  and  corpora- 

tion taxes. 
Counties  receive  no  revenue  from  poll  taxes,  inheri- 
tance taxes,  or  corporation  taxes. 


TAXATION  AND  REVENUE  SYSTEMS— CONNECTICUT. 


669 


V.  Business  taxes  and  licenses. 

The  county  commissioners  are  permitted  to  issue 
certain  licenses  and  establish  an  annual  fee  therefor 
for  specified  occupations  and  for  fees  within  prescribed 
limits,  as  follows : 

Auctioneers,  peddlers,  and  storekeepers,  $5  to  $100;  hotels,  saloons, 
and  grocers  selling  intoxicating  liquors,  $25  to  $300. 

Municipal  Revenues. 

a.   TAXES. 

I.  The  general  property  tax. 

1.  Base — 

The  property  included  and  the  methods  of  assess- 
ment and  of  equalization  are  the  same  for  municipal 
as  for  state  taxation. 

2.  Rate— 

The  rate  is  fixed  by  the  city  council  or  board  of 
trustees  in  cities.  In  school  districts  it  is  certified  by 
the  school  board  of  each  district  to  the  county  com- 
missioners and  levied  by  them  as  a  special  school  dis- 
trict tax.  The  same  applies  to  irrigation  districts  and 
road  districts.  In  the  latter  the  rate  shall  not  exceed 
$1  on  each  $100. 

3.  Collection — 

Municipal  taxes  are  collected  in  the  same  manner  as 
state  and  county  taxes. 

II.  Poll  tax. 

Every  able-bodied  male  between  the  ages  of  21  and 
45  years  shall  pay  to  the  road  overseer  of  his  district  a 


road  tax  of  $2  (annually),  or,  in  lieu  thereof,  perform 
two  days'  work,  of  eight  hours  each,  or  eight  hours 
work  with  team,  on  the  public  highways  of  his  road 
district.  The  tax  is  collected  by  the  road  overseer, 
who  receives  10  per  cent  commission. 
Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

Municipalities  receive  no  revenues  from  inheritance 
taxes  or  corporation  taxes. 
V.  Business  taxes  and  licenses. 

City  councils  in  cities  of  the  first  class  have  power  to 
license,  regulate,  and  tax  any  or  all  lawful  occupations, 
business  places,  amusements,  or  places  of  amusement. 

Auctioneers,  peddlers,  bowling  alleys,  billiard  tables,  and  stock  and 
other  brokers  must  obtain  licenses. 

School  Revenues. 

The  school  funds  are  administered  through  the 
superintendent  of  public  instruction  and  the  school 
districts. 

The  state  levies  no  annual  tax  for  general  school  pur- 
poses, but  the  proceeds  of  the  permanent  school  fund 
(interest  on  accumulations  from  the  sale  of  lands)  are 
apportioned  among  the  counties.  The  counties,  how- 
ever, levy  a  general  tax  for  school  purposes,  and  special 
or  school  district  taxes  in  each  district.  A  large  num- 
ber of  fines,  penalties,  and  forfeitures  for  violation  of 
different  laws,  including  those  concerning  revenue, 
courts,  penal  laws,  escheats,  dairying,  the  "bounty 
act,"  game  laws,  those  regulating  insurance,  and  others 
are  paid  into  the  school  fund. 


CONNECTICUT.1 


Connecticut  makes  an  entire  separation  of  state  and 
local  revenues.  The  general  property  and  poll  taxes 
are  town  taxes.  The  state  and  county,  however,  may 
have  recourse  to  them  for  the  sums  which  they  may 
apportion  to  the  towns  on  their  lists.  State  revenues 
are  in  general  derived  from  special  taxes,  or  special 
applications  of  the  general  property  tax,  principally 
from  railroads  and  various  corporations.  There  are 
also  heavy  incorporation  fees,  direct  and  collateral 
inheritance  taxes,  poll  or  military  commutation  taxes, 
fees,  and  licenses,  and  a  special  tax  on  investments. 

There  is  great  complexity  of  local  taxation  caused  by 
the  intermingling  of  town  and  city  areas,  dual  powers 
being  exercised  by  towns,  cities,  and  boroughs  in- 
cluded therein.  The  assessment  and  collection  of 
taxes  throughout  the  state  are  matters  concerning 
town  governments ;  the  appropriation  of  public  moneys 
and  the  fixing  of  the  tax  rates,  moreover,  are  concerns 
of  the  school  districts  and  especially  of  the  city  gov- 
ernments. 

'This  compilation  is  derived  mainly  from  the  General  Statutes  of  Con- 
nect ieut,  revision  of  1902,  in  force  July  1,  1902,  published  by  authority 
of  the  state:  Case,  Lockwood  &  Brainard  Company,  Hartford,  1902. 


Districts  with  powers  of  taxation  similar  to  school 
districts  may  be  established  by  towns  for  fire  protec- 
tion, street  sprinkling,  street  lighting,  tree  planting, 
construction  of  sidewalks,  and  drains  and  sewers. 

CONSTITUTIONAL    PROVISIONS. 

There  are  no  constitutional  limitations  or  provisions 
as  to  the  power  of  taxation  in  Connecticut. 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  The  town  assessors,  not  less  than  two  nor  more  than  five,  elected 
at  the  annual  town  meeting.  Assessors  in  the  towns  of  Hartford,  East 
Hartford,  and  Waterbury  hold  office  for  three  years;  in  other  towns,  for 
one  year.  Any  town  neglecting  to  elect  its  assessors  or  failing  to  make 
an  assessment  is  to  forfeit  a  sum  equal  to  double  its  state  tax  last  paid, 

(2)  The  collector  of  town  taxes  elected  at  the  annual  town  meeting, 
usually  for  one  year;  in  Middletown,  for  two  years. 

(3)  The  town  board  of  relief,  consisting  of  not  less  than  two  nor  more 
than  five  members,  elected  at  the  annual  town  meeting. 

(4)  The  state  board  of  equalization,  composed  of  the  treasurer, 
comptroller,  and  tax  commissioner. 


670 


WEALTH,  DEBT,  AND  TAXATION. 


State  Revenues. 


a.    TAXES. 


I.  The  general  property  tax. 

The  general  property  tax  is  primarily  a  town  tax, 
but  the  state  may  have  recourse  thereto  by  vote  of  the 
general  assembly.  No  property  taxes  for  state  pur- 
poses were  so  levied  in  the  fiscal  year  1902. 

1.  Base — 

(See  II  Poll  taxes,  and  Municipal  revenues,  A  I.) 
The  property  included  and  the  assessment  are  the 
same  for  state  taxation  as  for  town.  The  general  list 
of  the  state  is  made  up  of  the  assessment  lists  of  the 
towns,  as  equalized  by  the  state  board  of  equalization, 
and  upon  this  list  state  and  county  taxes  may  be 
imposed. 

The  state  levies  a  tax  on  shellfish  grounds  not  in- 
cluded in  the  territory  of  any  town. 

2.  Rate— 

The  rate  for  state  purposes  is  determined  by  appor- 
tionment upon  the  towns.  It  is  the  duty  of  the  select- 
men to  levy  the  amount  of  taxes  due  therefrom  upon 
the  town  list. 

The  rate  on  shellfish  grounds  is  1J  per  cent. 

3.  Collection — 

Collection  is  made  by  the  town  collector  as  for  the 
town  taxes.  If  any  town  fails  to  pay  its  portion  of 
the  state  tax  by  the  10th  day  of  November,  execution 
is  to  issue  against  the  estate  of  its  selectmen  for  the 
sum  due,  and,  if  returned  unsatisfied,  then  against 
the  inhabitants  of  the  town,  who  are  to  be  reimbursed 
by  the  town. 

The  tax  on  shellfish  grounds  is  collected  by  the  shellfish  grounds 
commissioner. 

II.  Poll  tax. 

a.  General. — The  state  levies  a  poll  tax  of  $1  against 
the  towns  for  every  male  person  resident  therein 
between  the  ages  of  2 1  and  70  years.  Towns  collect 
this  either  as  a  poll  tax  or  in  some  other  way.  They 
must,  however,  raise  and  pay  this  amount.  Students, 
firemen,  militiamen,  those  who  have  served  in  the 
army  or  navy  of  the  United  States,  and  those  who 
pay  the  military  tax  are  exempt. 

b.  Military. — An  annual  tax  of  $2  in  commutation 
of  military  duty  is  imposed  on  every  male  citizen 
between  the  ages  of  18  and  45  years  who  is  enrolled 
as  fit  for  military  duty. 

The  town  receipts  from  these  taxes  are  never  equal 
to  the  state  levies.  In  practice  the  taxes  accrue  to  the 
benefit  of  the  town,  and  the  levies  of  the  state  become 
general  property  taxes  apportioned  on  the  basis  of  the 
number  of  the  two  specified  classes  of  polls. 

III.  Inheritance  tax. 

The  balance  over  $10,000  of  the  estate  of  every 
deceased   person,    when   the   property   is   within   the 


jurisdiction  of  the  state  whether  belonging  to  parties 
in  the  state  or  not,  and  passing  by  will  or  by  the 
inheritance  law  thereof,  is  subject  to  the  succession  tax. 
All  transfers  and  alienations  to  take  effect  upon  the 
death  of  the  grantor  are  testamentary  gifts  for  purposes 
of  this  tax.  Gifts  of  paintings,  curios,  and  collections 
of  articles  of  beauty  or  interest  made  to  institutions 
in  the  state  for  free  exhibition  or  for  preservation  for 
public  benefit  are  exempt.  On  such  estates  passing 
to  a  parent,  husband,  wife,  lineal  descendant,  or  legally 
adopted  child  of  the  deceased,  the  tax  is  one-half  of 
1  per  cent  of  its  value  for  the  use  of  the  state ;  and  on 
any  such  estate  or  interest  therein  passing  to  collateral 
kindred  or  strangers  to  the  blood,  the  tax  is  3  per  cent. 
The  tax  is  to  be  paid  to  the  treasurer  of  the  state 
by  the  executor  or  administrator  within  one  year 
after  his  qualification. 

IV.   Corporation  taxes. 

Corporate  property  of  domestic  and  foreign  cor- 
porations, whose  stock  is  not  subject  to  taxation  and 
which  are  not  required  to  pay  a  direct  tax  to  the  state 
in  lieu  of  other  taxes,  is  listed  for  taxation  in  the 
towns,  as  is  the  property  of  individuals. 

Railroads. — Railroad  companies  are  taxed  for  state  purposes  upon 
the  value  of  their  capital  stock  and  funded  and  floating  indebtedness, 
as  determined  by  the  state  board  of  equalization,  made  on  the  basis 
of  statement  by  the  company.  This  valuation  is  taken  as  "  the  measure 
of  value  of  such  railroad,  its  rights,  franchises,  and  property,"  and 
is  in  lieu  of  all  other  taxes,  except  taxes  on  real  estate  not  used  for 
railroad  purposes,  which  are  deducted  from  the  taxes  calculated  on 
the  stock  and  debt  valuation.  In  the  assessment  where  part  of  the 
funded  and  floating  debt  was  occasioned  by,  or  stock  was  issued  for, 
any  part  of  the  railroad  in  another  state,  or  steamboat  line  in  con- 
nection with  the  railroad,  that  amount  is  deducted  from  the  valuation. 
When  only  part  of  the  railroad  lies  in  the  state,  the  company  pays  on 
such  proportion  of  the  valuation  as  the  length  of  its  road  lying  in  the 
state  bears  to  the  entire  length  of  road.  In  fixing  the  valuation  and 
length  of  line  in  the  state,  any  branch  in  the  state  which  is  of  less 
than  one-fourth  the  average  value  per  mile  of  the  trunk  line  is  not 
included  but  is  estimated  separately  at  its  true  and  just  value  and 
taxed  at  the  rate  of  1  per  cent  thereon.  The  amount  of  any  bonds 
or  other  obligations  of  the  company  held  in  trust  as  part  of  any  sinking 
fund  of  the  company  is  deducted  from  the  valuation  of  the  road.  The 
statute  prescribes  the  rate  at  1  per  cent  upon  the  above  valuation, 
to  be  paid  by  the  25th  of  November,  under  penalty  of  forfeiture  of 
twice  the  amount  required. 

Street  railways  of  every  description  are  subject  to  the  same  taxation 
as  railroads. 

Express  companies. — Express  companies  are  required  to  pay  a 
tax  to  the  state  upon  the  gross  receipts  within  the  state  for  the  year 
preceding  the  1st  of  July  at  the  rate  of  5  per  cent  of  such  receipts. 
This  tax  is  in  lieu  of  all  other  taxes  upon  the  property  of  the  company 
used  exclusively  in  the  express  business.  It  is  payable  by  the  20th 
of  October.  When  any  company  fails  to  make  the  sworn  statement 
of  gross  receipts  required,  the  treasurer  may  accept  $10,000  in  lieu  of 
the  5  per  cent  tax  on  receipts;  otherwise,  there  is  a  forfeiture  of  $500 
to  the  state,  and  for  nonpayment  a  forfeiture  of  double  the  amount 
of  the  tax. 

Telegraph  and  telephone  companies. — Telegraph  companies  are  re- 
quired to  pay  to  the  state  a  tax  of  25  cents  on  each  mile  of  wire  oper- 
ated within  the  state  on  July  1.     Telephone  companies  are  required 


TAXATION  AND  REVENUE  SYSTEMS— CONNECTICUT. 


671 


to  pay  to  the  state  a  tax  of  70  cents  on  each  telephone  transmitter, 
and  a  further  tax  of  25  cents  on  each  mile  of  wire  operated  within  the 
state  on  July  1. 

These  taxes  are  in  lieu  of  all  other  taxes  upon  property  used  in  the 
business,  but  any  real  estate  is  liable  to  taxation  in  the  town  in  which 
it  is  situated. 

Savings  banks. — Savings  banks  are  required  to  pay  to  the  state 
a  franchise  tax  on  the  balance  of  their  deposits,  exclusive  of  surplus 
over  $50,000,  and  over  the  amount  invested  in  bonds  of  the  state  or 
any  town  or  city  thereof  in  aid  of  the  construction  of  any  railroad, 
which  is  exempt  from  taxation,  and  also  the  amount  invested  in  stocks 
of  banks,  national  banks,  and  trust,  insurance,  investment,  and  bridge 
companies:  the  rate  of  semiannual  tax  equals  one-eighth  of  1  per  cent 
of  the  amount  of  its  deposits  remaining,  less  the  amount  of  local  taxes 
on  real  estate  in  Connecticut.  The  tax  is  payable  by  the  20th  of 
January  and  the  20th  of  July.  This  tax  is  in  lieu  of  all  other  taxes 
upon  savings  banks,  their  deposits  and  surplus. 

Insurance  companies: 

Domestic  mutual  fire  insurance  companies  are  required  to  pay 
to  the  state  a  franchise  tax  of  three-fourths  of  1  per  cent  upon  the  bal- 
ance of  the  total  amount  of  assets  over  unpaid  losses,  real  estate,  and 
bonds  of  the  state  or  any  town  or  city  thereof  in  aid  of  the  construction 
of  railroads  which  are  exempt  by  law.  ■ 

Domestic  mutual  life  insurance  companies  are  required  to  pay  a 
similar  franchise  tax  of  one-fourth  of  1  per  cent  on  the  total  amount 
of  their  premiums,  notes,  and  on  the  market  value  of  all  their  other 
Etasete,  deducting,  however,  the  same  amounts  as  in  the  case  of  fire 
insurance  companies  above  mentioned,  and  if  in  part  a  stock  company 
taxable  on  the  stock,  the  market  value  of  the  assets  belonging  to  the 
stock  department.  Taxes  are  payable  by  fire  insurance  companies 
by  the  30th  of  January  and  by  life  insurance  companies  by  the  25th 
of  February,  and  are  in  lieu  of  all  other  taxes  upon  assets,  except 
taxes  upon  real  estate  or  on  taxable  stock.  There  is  a  forfeit  of  $5,000 
for  failure  to  return  a  statement  of  assets  and  of  double  the  amount  of 
the  tax  for  nonpayment  within  the  time  limited. 

Foreign  insurance  companies. — Insurance  companies  of  other  states 
doing  business  in  Connecticut  are  required  to  pay  retaliatory  fees 
and  taxes,  or  the  same  imposed  by  such  other  states  on  Connecticut 
companies.     These  are  payable  by  January  30. 

Agents  of  insurance  companies  organized  under  the  laws  of  foreign 
governments  and  licensed  to  transact  business  in  the  state  are  required 
to  pay  a  tax  of  2  per  cent  on  the  gross  amount  of  premiums  received 
from  such  business.     This  tax  is  payable  by  January  30. 

Shares  of  capital  stock  of  every  bank,  national  bank,  and  trust,  in- 
surance, investment,  and  bridge  company  are  taxed  1  per  cent  on  the 
market  value  of  said  shares  to  the  owner  on  October  1  on  the  basis  of 
statements  by  the  corporation.  The  tax  is  payable  before  the  last  day 
of  February  by  the  corporation  to  the  state  treasurer. 

The  amount  of  taxes  paid  by  the  corporation  on  its  real  estate  in 
Connecticut  is  deducted.  The  corporation  has  a  lien  on  the  shares 
of  the  stockholders  for  the  payment  of  these  taxes. 

The  state  remits  to  the  taxing  districts  in  which  the  stockholders 
are  resident,  the  tax  on  resident  stock.  Nonresident  national  bank 
stock  taxes  are  remitted  to  the  town  in  which  the  bank  is  located. 
Taxes  on  other  nonresident  stock  are  kept  by  the  state. 

V.  Business  taxes  and  licenses. 

The  following  taxes  are  levied  annually  unless 
otherwise  stated: 

Insurance  brokers,  $10;  itinerant  vendors,  state  fee,  $100;  barbers, 
certificate  of  registration,  $2;  insane  asylums,  $50  first  year,  $25  per  year 
thereafter;  oyster  vessels,  under  5  tons,  $2;  each  ton  over  5  tons,  50 
cents:  dental  license,  $25;  osteopath,  $25;  medical  registration,  $2. 

VI.  Investment  tax  (or  the  "4-mill  tax"). 

Choses  in  action,  bonds,  and  notes  may  be  exempted  from  further 
taxation  by  the  payment  to  the  state  treasurer  of  a  tax  of  2  per  cent 
on  the  face  value  thereof  for  five  years,  or  for  a  greater  or  less  period 


at  the  same  rate  (4  mills  per  annum),  and  a  certificate  is  given  exempt- 
ing such  choses  in  action  from  all  taxation  in  the  state  during  that 
period. 

Corporations  and  brokers  engaged  in  negotiating  choses  in  action 
secured  by  mortgages  on  real  estate  situated  in  other  states  are  required 
to  pay  a  tax  of  1  per  cent  on  the  aggregate  amount  of  all  such  invest- 
ments made  in  the  state  during  the  preceding  year  to  January  1, 
deducting  the  amount  of  bonds  exempted  by  payment  of  the  4-mill 
tax.  Corporations  pay  this  tax  January  20;  brokers,  February  20. 
This  tax  is  regarded  as  in  the  nature  of  a  penalty  for  nonpayment  of 
the  4-mill  tax. 

B.    FEES. 

Charter  fees  from  corporations. — Fifty  cents  on  every  thousand 
dollars  of  authorized  capital  stock  up  to  $5,000,000  and  10  cents  on 
every  thousand  in  excess  of  $5,000,000  for  all  corporations  under  general 
laws.  Corporations  organized  under  special  laws  pay  $100  for  their 
charter  and  a  tax  of  $1  on  each  thousand  of  capital  stock,  but  in  no  case 
less  than  $50. 

For  copies  of  private  bills  there  is  a  charge  of  $5  per  legal  page. 

The  secretary  of  state  collects:  For  filing  copy  of  charter  of  foreign 
corporation,  $10;  for  filing  statement  of  foreign  corporation,  $5;  cer- 
tificate of  organization  of  corporation  without  capital  stock,  $10;  filing 
and  recording  documents,  2  pages,  $1 ;  each  additional  page,  50  cents. 

The  insurance  commissioner  collects:  Annual  fees,  $10;  annual 
reports,  $10;  valuation  of  policies  of  domestic  life  companies,  per  thou- 
sand dollars,  1  cent:  valuation  of  policies  of  foreign  life  companies, 
retaliatory  rates;  certificates  of  valuations  to  be  filed  in  other  states,  $5; 
filing  copy  of  charter,  $10;  certificate  of  authority,  $5. 

C.    FINES    AND    PENALTIES. 

All  fines,  forfeitures,  and  penalties  belong  to  the 
state,  unless  otherwise  disposed  of  by  law,  except  that 
fines  imposed  by  a  justice  of  the  peace  go  to  the  town. 

County  Revenues. 

a.   TAXES. 

I.  The  general  property  tax. 

1.  Base — 

The  property  included  and  the  assessment  and 
equalization  are  the  same  for  county  as  for  the  town 
taxes. 

2.  Rate— 

The  county  tax  is  imposed  upon  the  towns  in  pro- 
portion to  their  assessment  lists  by  the  representatives 
chosen  to  the  general  assembly  from  all  the  towns  in 
the  county,  and  the  senators  resident  in  the  county,  at 
a  meeting  to  be  called  by  the  county  commissioners. 
For  repairs  on  a  courthouse  or  jail,  not  to  exceed  $600, 
the  county  commissioners  may  apportion  the  amount 
among  the  towns. 

3.  Collection — 

Collection  of  the  county  tax,  as  of  town  taxes,  is 
made  by  the  town.  If  any  town  neglects  to  pay  its 
county  tax,  the  county  treasurer  may  issue  execution 
against  the  goods  and  estate  of  the  inhabitants. 

II,  III,   and  IV.  Poll  tax,  inheritance  tax,  and  cor- 

poration taxes. 

The  county  does  not  share  in  the  poll,  the  inheri- 
tance, nor  the  corporation  taxes. 


672 


WEALTH,  DEBT,  AND  TAXATION. 


V.  Business  taxes  and  licenses. 

Five  per  cent  of  the  moneys  collected  by  the  county 
commissioners  on  town  liquor  licenses  is  to  be  paid 
over  to  the  county  for  county  expenses.  The  remain- 
der is  to  be  paid  to  the  treasurers  of  the  respective 
towns. 

Municipal  Revenues. 

a.   TAXES. 

I.   The  general  property  tax. 

The  town  is  the  unit  of  assessment  and  taxation, 
and  property  assessed  for  towns  includes  that  of  every 
village,  borough,  or  city  embraced  within  the  town 
limits. 

1.  Base — 

a.  The  property  included  and  exempt. — All  property, 
both  real  and  personal,  not  expressly  exempt,  is  sub- 
ject to  this  tax. 

(1)  "  Real  estate "  includes  all  such  property  not  exempted,  as 
follows:  Land  and  buildings,  fisheries,  quarries,  mines,  and  ore  beds. 

(2)  "Personal  property "  includes  all  notes,  bonds,  and  stocks  not 
issued  by  the  United  States;  moneys;  credits;  choses  in  action;  ves- 
sels, except  registered  and  enrolled  sailing  vessels;  barges  engaged 
in  trade  between  this  and  other  states,  and  registered  vessels  which 
are  actually  engaged  in  foreign  commerce;  goods,  chattels,  and  effects, 
or  any  interest  therein  belonging  to  any  resident  in  this  state. 

Mortgages  on  real  estate  in  this  state,  where  there  is  no  agreement 
that  the  borrower  shall  pay  the  tax,  are  to  be  taxed  only  in  the  town 
in  which  the  real  estate  is  situated.  Bonds  secured  by  mortgage  on  real 
estate  in  another  state  are  taxable. 

Property  situated  in  another  state  and  taxed  there  need  not  be  listed 
for  taxation  in  this  state,  but  this  provision  does  not  apply  to  loans 
by  residents  to  nonresidents,  nor  to  foreign  railroad  bonds  owned  by 
residents.  Stocks  of  foreign  corporations  are  presumed  to  be  taxed  in 
the  state  in  which  such  corporations  are  located.  Money  or  property 
invested  in  merchandising  or  manufacturing  outside  the  state  need  not 
be  listed.  ' 

The  property  of  certain  corporations  which  pay  a  direct  tax  to  the 
state  in  lieu  of  other  taxes  is  not  subject  to  the  general  property  tax, 
and  the  shares  of  stock  in  corporations  which  are  taxed  on  the  corpo- 
rate property  are  not  taxed  to  the  stockholders  individually. 

The  whole  property  of  every  corporation  organized  under  the  law  of 
the  state  whose  stock  is  not  liable  to  taxation,  and  which  is  not  required 
to  pay  a  direct  tax  to  the  state  in  lieu  of  other  taxes,  and  the  whole  prop- 
erty in  the  state  of  foreign  corporations  is  liable  to  taxation  the  same  as 
the  property  of  individuals. 

So  much  of  the  deposits  of  any  savings  bank  as  are  invested  in  the 
shares  of  capital  stock  of  any  bank,  national  bank  trust,  insurance, 
investment,  and  bridge  company  are  not  taxed. 

(3)  Exemptions  in  addition  to  public  property  are:  Churches;  par- 
sonages to  the  value  of  $5,000;  college  buildings;  academies;  public 
schoolhouses ;  infirmaries;  buildings  of  scientific,  literary,  benevolent, 
or  ecclesiastical  societies ;  cemeteries ;  property  of  pensioners,  soldiers, 
sailors,  and  marines  disabled  in  service  to  the  value  of  $3,000;  of 
blind  persons  in  like  amount;  property  to  the  value  of  $1,000  of  every 
resident  who  served  in  the  army,  navy,  or  marine  service  of  the  United 
States  in  time  of  war;  widows  and  mothers  of  such  persons  deceased 
in  like  amount ;  also  of  pensioned  widows,  fathers,  and  mothers ;  cloth- 
ing and  furniture  of  every  person  and  family,  not  including  jewelry,  to 
the  value  of  $500;  farm  tools  to  the  value  of  $200;  produce  held  by  the 
producer  from  the  preceding  season,  colts,  calves,  and  lambs,  and  fuel 
and  provisions  for  the  use  of  one  family;  swine  to  the  value  of  $.50; 
poultry  to  the  value  of  $25;  sheep  to  the  value  of  $100;  cash  not 
exceeding  $100;  private  libraries  and  books  not  exceeding  $200  in 


value;  musical  instruments  to  the  value  of  $25;  all  public  libraries; 
fire  engines  and  fire  houses;  tools  of  a  mechanic  to  the  value  of  $200; 
fishing  apparatus  to  the  value  of  $2.00;  stock  and  property  of  agricul- 
tural and  ecclesiastical  societies;  hospitals  supported  by  the  state; 
property  of  Grand  Army  posts;  state  bonds  and  municipal  bonds  in 
aid  of  construction  of  certain  railroads. 

Mortgages. — Money  loaned  on  interest  with  an  agreement  that  the 
mortgagor  shall  pay  the  taxes  is,  to  an  amount  equal  to  the  assessed 
value  of  the  mortgaged  land,  exempt  from  taxation,  but  the  excess  of  the 
loan  over  such  valuation  is  to  be  taxed  to  the  lender. 

Tree  plantations,  in  land  not  exceeding  $25  per  acre,  not  less  than 
1,200  trees  to  the  acre,  when  the  trees  have  grown  to  an  average  of  6 
feet,  are  exempt  for  a  period  of  twenty  years . 

College  property  is  exempt,  but  not  real  estate  in  this  state  affording 
an  annual  income  of  more  than  $6,000;  also  property  of  churches  and 
ecclesiastical  societies  not  exceeding  $10,000  in  value. 

Land  for  municipal  water  supply  is  exempt  when  the  inhabitants  of 
the  town  in  which  the  land  is  situated  have  the  same  privileges  as  the 
municipality  supplied. 

Bonds,  notes,  and  other  choses  in  action  may  be  exempted  from  local 
taxation  by  payment  of  the  4-mill  tax  to  the  state  treasurer. 

b.  Assessment. — The  town  assessment  serves  for 
state  and  county  taxes  as  well.  While  inhabitants  of 
cities  and  boroughs  are  taxed  for  town  purposes,  they 
may  also  have,  under  their  charters,  an  independent 
assessment  and  tax  list  for  purely  municipal  purposes. 
In  some  cases  this  local  list  is  made  from  the  grand 
list  of  the  town  in  which  the  borough  or  city  is  situated ; 
in  some  the  municipal  assessors  make  new  and  dif- 
ferent lists;  in  others  town  and  city  are  consolidated. 
But  in  all  cases  the  town  assessment,  or  what  corre- 
sponds to  that,  is  complete,  and  the  town  lists 
taken  together  make  up  the  list  for  state  purposes  of 
all  the  property  taxable  therein.  The  town  assess- 
ment is  made  by  the  town  assessors  with  reference  to 
October  1.  Each  resident  of  the  town  must  furnish 
the  assessor  with  a  verified  list  of  all  his  taxable 
property  at  its  present,  true,  and  actual  valuation.  If 
the  taxpayer  fails  to  make  out  his  list,  the  assessors 
are  to  do  it  for  him,  adding  10  per  cent  as  a  penalty. 
Persons  not  returning  lists  are  to  be  examined  by  the 
assessors,  and  for  refusal  to  appear  may  be  fined  an 
amount  not  exceeding  $1,000.  Taxable  property  is 
to  be  assessed  at  its  full  and  actual  market  value  except 
certain  vessels,  which  are  assessed  at  a  valuation  equal 
to  their  net  earnings  for  the  year  preceding,  and  lands 
and  separate  lots,  which  are  to  be  set  in  the  lists  at 
their  average  present  and  actual  valuation  by  the  acre. 

Traders  and  manufacturers  are  assessed  in  the  town  in  which  their 
business  is  carried  on  upon  the  average  amount  of  goods  on  hand  during 
the  year.     Merchants  are  assessed  also  on  accounts  receivable. 

Indebtedness  of  a  resident  of  the  state  to  another  resident,  not  secured 
by  mortgage  on  land  in  this  state,  may  be  deducted  from  the  listed  prop- 
erty of  the  debtor.  This  deduction  must  be  made  by  the  board  of  relief, 
and  only  in  case  the  list  was  duly  given  in,  and  only  to  the  extent  of  the 
assessed  valuation  of  the  property  for  which  the  indebtedness  was 
contracted. 

Railroads,  savings  banks,  telegraph  and  telephone  companies,  insur- 
ance companies,  investment  companies  and  brokers,  and  express  com- 
panies are  assessed  by  the  state  board  of  equalization  for  purposes  of 
taxation  on  property  used  in  the  business,  which  is  accordingly  not 
assessed  nor  taxed  locally. 


TAXATION  AND  REVENUE  SYSTEMS— CONNECTICUT. 


673 


Corporations,  domestic  and  foreign,  which  do  not  pay  taxes  to  the 
state  in  lieu  of  other  taxation,  are  assessed  on  their  property  as  are  indi- 
viduals. Stockholders  of  a  corporation,  the  whole  property  of  which  is 
assessed  in  its  name,  are  not  to  be  assessed  on  their  shares. 

Waterpower  is  assessed  as  incidental  to  the  machinery  which  is  oper- 
ated by  it. 

Mortgages. — Money  loaned  on  interest,  secured  by  a  mortgage  on  real 
estate  in  the  state,  with  an  agreement  that  the  borrower  shall  pay  the 
taxes,  is  not  taxed  (on  the  credit)  to  the  extent  of  the  assessed  value  of 
the  mortgaged  land.  But  the  excess  of  the  loan  is  taxed  where  the 
lender  resides;  where  there  is  no  agreement  for  the  borrower  to  pay  the 
tax,  the  credit  is  assessed  only  where  the  real  estate  is  situated.  Mort- 
gages on  real  estate  in  other  states  are  taxed  as  personal  property  to 
resident  holders. 

Shellfish  grounds  under  state  jurisdiction  and  not  under  any  town 
are  assessed  by  the  shellfish  grounds  commissioners  and  may  be  taxed 
by  them  1$  per  cent  of  the  valuation. 

c.  Equalization. — The  board  of  relief  in  each  town 
hears  appeals  from  the  valuations  of  the  assessors  and 
equalizes  and  adjusts  the  valuations  on  the  assessment 
list  of  the  town ;  it  may  increase  valuations  and  assess 
persons  and  property  omitted  by  the  assessors.  It 
may  also  reduce  the  list  and  make  certain  deductions 
for  indebtedness  where  lists  have  been  duly  given  in. 
It  may  also  abate  the  polls  of  indigent  and  infirm  per- 
sons not  exceeding  one-tenth  of  the  taxable  polls. 
An  appeal  lies  from  the  board  of  relief  to  the  superior 
court  of  the  county. 

The  state  board  of  equalization  equalizes  between 
the  towns  to  make  up  the  general  list  of  the  state. 

2.  Rate — 

The  amount  of  taxes  to  be  raised  is  determined  in  the 
annual  town  meeting,  and  the  selectmen  of  the  town 
make  out  rate  bills  with  the  proportion  which  each 
individual  is  to  pay  according  to  the  assessment  list. 
When  any  town  neglects  to  vote  the  necessary  taxes,  its 
selectmen  may  make  a  rate  bill  for  the  same. 

3.  Collection — 

Town  taxes  are  payable  within  one  year  after  they 
are  laid  and  are  collected  by  the  town  collectors.  Col- 
lectors may,  if  necessary,  levy  on  chattels,  realty,  or 
attach  the  body  of  delinquents.  The  lien  on  real 
estate  attaches  from  October  1  in  the  year  previous 
to  that  in  which  the  taxes  become  due. 

II.  Poll  tax. 

Every  male  person  between  the  ages  of  21  and  70 
years,  unless  specially  exempt,  is  liable  to  a  poll  tax. 
The  state  levies  in  each  town  an  amount  equal  to  $1 
per  person  subject  to  this  tax.  The  town  pays  this 
to  the  state  and  recoups  itself  by  collecting  from  indi- 
viduals so  far  as  it  cares  to  do  so.  Students  in  colleges 
and  academies,  active  members  in  fire  companies, 
members  of  the  state  militia  still  active,  and  those 


who  have  served  five  years,  persons  who  pay  a  mili- 
tary commutation  tax,  and  those  who  have  served 
in  the  army  or  navy  of  the  United  States  are  exempt. 
(The  military  commutation  tax  collected  by  the  town 
is  paid  over  to  the  state.)     (See,  also,  page  670.) 

III.  Inheritance  tax. 

The  towns  and  cities  do  not  share  in  the  inheritance 
tax. 

IV.  Corporation  tax. 

The  state  remits  taxes  collected  on  shares  of  stock 
in  banks,  national  banks,  and  trust,  insurance,  invest- 
ment, and  bridge  companies  to  those  towns  and  to 
those  cities  which  are  consolidated  with  the  town 
governments  in  which  the  owners  reside.  The  state 
also  remits  taxes  on  nonresident  stock  of  national 
banks  to  the  town  in  which  the  bank  is  located.  (See 
State  revenues,  A,  IV,  last  paragraph,  above.) 

V.  Business  taxes  and  licenses. 

The  following  are  collected  annually : 

Lodging  houses,  $10;  auctioneers,  discretionary  with  town;  pawn- 
brokers, $10  to  $50;  exhibitions,  discretionary  with  town;  junk  shops, 
$2  to  $10;  itinerant  vendors,  local  license,  $25;  maternity  hospitals, 
rate  to  be  determined  by  town;  bicycle  side  paths,  50  cents  to  $1; 
dogs — for  each  male  or  spayed  female,  $1.15;  for  each  unspayed  female, 
$5.15;  kennel  license,  $50;  license  to  collect  birds  for  scientific  purposes" 
$1;  secondhand  stores,  $2  to  $10;  liquor  licenses — sale  of  spirituous 
liquors,  towns  of  over  3,000  inhabitants,  $450;  other  towns,  $250;  ale, 
beer,  and  wine  only,  $200;  reputable  hotels  and  wholesale  grocers,  not 
less  than  $250;  druggists— towns  over  5,000,  $12;  towns  less  than 
5,000,  $10;  distilled  liquors  and  alcohol,  $50. 

These  taxes  are  paid  to  the  county  commissioners 
for  licenses  in  towns  and  cities  which  vote  in  favor  of 
such  licenses.  License  fees  are  paid  over  to  the  town 
with  a  deduction  of  5  per  cent  for  county  purposes. 

School  Revenues. 

Towns  may  form  school  districts  which  have  power 
to  levy  taxes  for  various  school  purposes  upon  the 
property  in  the  district.  Polls  are  set  in  the  list  at 
$100  each.  District  taxes  are  laid  on  the  assessment 
list  of  the  town  as  corrected  for  the  purpose  by  the 
town  assessors.  There  are  no  restrictions  on  the  rate 
of  school  levy,  except  in  towns  including  within  their 
limits  cities  that  provide  for  schools. 

The  state  comptroller  distributes  the  income  of  the 
school  fund  to  the  town  treasurers  at  the  rate  of  $2.25 
for  each  child  between  4  and  16  years  of  age. 

The  "town  deposit  fund "  of  money  derived  from  the 
United  States  is  deposited  with  the  towns  and  the 
income  applied  to  public  schools. 


932—07- 


-43 


674 


WEALTH,  DEBT,  AND  TAXATION. 


DELAWARE. 


Although  the  revenue  system  of  Delaware  as  out- 
lined in  the  more  general  laws  is  simple  and  logical, 
its  operation  is  greatly  modified  by  what  would  be 
regarded  in  other  states  as  special  legislation.  The 
general  assembly  not  only  makes  special  provisions 
for  different  counties  and  cities  by  name,  but  imposes 
special  taxes  on  railroad  companies  and  banks  by 
name.  As  these  special  provisions  are  so  numerous 
as  to  defy  classification  or  condensation,  only  the 
main  features  of  the  system  can  be  given.  The 
attempt  has  been  made,  however,  to  insert  a  few  of 
the  more  striking  instances  of  special  legislation  in 
order  to  show  how  they  modify  the  system.  Although 
the  constitution  of  Delaware,  adopted  in  1897,  pro- 
vides that  taxes  shall  be  uniform,  the  general  assembly 
continues  to  pass  laws  imposing  special  taxes  on 
different  railroads  by  name. 

The  state  derives  its  revenues  from  corporation 
taxes  and  from  fees  and  licenses  on  various  occupa- 
tions.    There  is  no  state  levy  on  general  property. 

The  counties,  cities,  and  hundreds  depend  upon 
the  general  property  tax.  The  type  of  this  tax  is 
an  old  one,  including,  as  it  still  does,  a  valuation  of 
ground  rentals  and  an  assessment  of  certain  classes 
of  property  at  statutory  values.  Only  recently  has 
the  poll  tax  been  changed  from  one  on  polls  at  a  fixed 
value,  as  if  property,  to  one  of  uniform  rate  per  poll. 

Delaware  has  practically  complete  separation  of 
state  and  local  taxation. 

CONSTITUTIONAL    PROVISIONS. 

Prior  to  1897  there  were  no  provisions  in  the  con- 
stitution of  Delaware  relating  to  taxation,  but  in 
the  new  constitution  adopted  in  that  year  the  follow- 
ing were  introduced: 

ARTICLE   VIII. 

Sec.  1.  All  taxes  shall  be  uniform  upon  the  same  class  of  subjects 
within  the  territorial  limits  of  the  authority  levying  the  tax,  and  shall 
be  levied  and  collected  under  general  laws,  but  the  general  assembly 
may  by  general  laws  exempt  from  taxation  such  property  as  in  the 
opinion  of  the  general  assembly  will  best  promote  the  public  welfare. 

Sec.  5.  The  general  assembly  shall  provide  for  levying  and  collecting 
a  capitation  tax  from  every  male  citizen  of  the  state  of  the  age  of 
21  years  or  upward ;  but  such  tax  to  be  collected  in  any  county  shall 
be  uniform  throughout  that  county,  and  such  capitation  tax  shall 
be  used  exclusively  in  the  county  in  which  it  is  collected. 

Sec.  7.  In  all  assessments  of  the  value  of  real  estate  from  taxation, 
the  value  of  the  land  and  the  value  of  the  buildings  and  improvements 
thereon  shall  be  included.  And  in  all  assessments  of  the  rental  value 
of  real  estate  for  taxation,  the  rental  value  of  the  land  and  the  rental 
value  of  the  buildings  and  the  improvements  thereon  shall  be  included. 

1  This  compilation  is  derived  mainly  from  the  following  sources: 

The  Revised  Statutes  of  the  State  of  Delaware.  Edition  of  1893. 
Known  as  the  Revised  Code  of  1893:  Wilmington,  Del.,  1893. 

The  Constitution  of  Delaware,  adopted  in  convention,  June  4,  1897: 
Wilmington,  Del.,  1897. 

The  Laws  of  Delaware,  Vols.  XX,  XXI,  and  XXII,  being  the  session 
laws  since  1893. 


The  foregoing  provisions  of  this  section  shall  apply  to  all  assessments 
of  the  value  of  real  estate  or  the  rental  value  thereof  for  taxation  for 
state,  county,  hundred,  school,  municipal,  or  other  public  purposes. 


ARTICLE    X. 


Sec.  3.  Provided,  That  *  *  *  all  real  and  personal  property 
used  for  school  purposes,  where  the  tuition  is  free,  shall  be  exempt 
from  taxation  and  assessment  for  public  purposes. 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  The  state  treasurer,  elected  for  two  years,  who  collects  most  of 
the  specific  taxes. 

(2)  The  clerks  of  the  peace,  elected  in  each  county  for  a  term  of  four 
years,  who  collect  licenses  for  the  state. 

t  (3)  The  levy  court,  composed  of  commissioners  of  a  varying  number 
in  each  county,  elected  usually  by  the  hundreds  for  a  term  of  four 
years,  supervises  the  work  of  assessment. 

(4)  The  assessors,  one  elected  in  each  hundred  for  a  term  .of  two 
years.     Wilmington  hundred  has  three  assessors. 

(5)  The  collectors,  one  in  each  hundred,  appointed  annually  by  the 
levy  court. 

State  Revenues. 

a.   TAXES. 

I.  The  general  property  tax. 

Although  the  state  has  apparently  not  surrendered 
formally  its  right  to  use  this  tax,  it  is  not  used  at 
present.     (See  County  revenues.) 

II.  Poll  tax. 

Not  used  for  state  purposes.  (See  County  rev- 
enues.) 

III.  Inheritance  tax. 

This  tax  of  5  per  cent  is  levied  on  all  estates,  real 
and  personal,  passing  to  strangers  in  blood,  excepting 
estates  of  $500  or  less,  which  are  exempt,  and  is 
collected  for  the  state  by  the  register  of  wills  on 
commission  of  one-half  of  1  per  cent.  Legacies  for 
religious,  charitable,  and  educational  purposes  are 
exempt. 

IV.  Corporation  taxes. 

(1)  Specific. — The  Farmers'  Bank,  one-fourth  of  1  per  cent  per 
annum  on  paid-up  capital.  The  Bank  of  Delaware,  one-fourth  of  1  per 
cent  per  annum  on  paid-up  capital,  and  on  surplus  over  25  per  cent 
of  paid-up  capital.  The  Bank  of  Wilmington  and  Brandywine,  one- 
fourth  of  1  per  cent  per  annum  on  paid-up  capital.  The  Bank  of 
Smyrna,  one-fourth  of  1  per  cent  per  annum  on  paid-up  capital.  The 
Union  Bank  of  Delaware,  one-fourth  of  1  per  cent  per  annum  on  paid- 
up  capital.  The  Delaware  City  Bank,  one-fourth  of  1  per  cent  per 
annum  on  paid-up  capital.  The  Bank  of  Milford,  one-fourth  of  1  per 
cent  per  annum  on  paid-up  capital.  The  Philadelphia,  Wilmington, 
and  Baltimore  Railroad,  one-fourth  of  1  per  cent  per  annum  on  paid- 
up  capital. 

(2)  Railroad  and  steamboat  passenger  tax. — Every  person,  corpora- 
tion, etc.,  engaged  in  carrying  passengers  by  steampower  on  land 
or  water  is  required  to  pay  a  state  tax  at  the  rate  of  10  cents  per 
passenger,  soldiers  and  sailors  not  included.     Companies  are  required 


TAXATION  AND  REVENUE  SYSTEMS— DELAWARE. 


675 


to  report  the  number  of  passengers  carried.  The  Wilmington  City 
Railway  Company  is  exempt.  All  railroads  other  than  the  Philadel- 
phia, Wilmington,  and  Baltimore  Railroad  Company,  which  is  allowed 
to  commute  this  tax  by  an  annual  payment  of  $13,000,  may  likewise 
commute  the  tax  by  an  annual  payment  bearing  the  same  ratio  to 
their  gross  receipts  from  passenger  traffic  which  $13,000  does  to  that 
of  the  Philadelphia,  Wilmington,  and  Baltimore  Railroad  Company. 

(3)  Net  earnings  tax. — All  railroads  and  canal  companies,  domestic, 
doing  business  in  Delaware,  are  required  to  pay  10  per  cent  on  the  net 
earnings  in  Delaware,  this  amount  being  that  proportion  of  the  total 
net  earnings  which  the  mileage  in  Delaware  is  of  the  total  mileage. 

1 1  Railroad  companies  taxed  under  (3)  pay  annually  also  for  each 
locomotive,  $100;  passenger  car,  $25;  freight  car,  $10. 

(5)  Railroad  and  canal  companies  taxed  under  (3)  pay  also  an  annual 
tax  of  one-half  of  1  per  cent  on  the  actual  cash  value  of  every 
share  of  capital  stock.  The  Philadelphia,  Wilmington,  and  Baltimore 
Railroad  Company  may  commute  the  above  taxes  (3),  (4),  and  (5) 
by  paying  $27,000  annually.  The  Delaware  Railroad  Company  may 
commute  the  taxes  under  (2),  (3),  (4),  and  (5)  for  $1,500  annually. 
In  1901  it  was  enacted  that  this  company  might  commute  all  taxes 
for  $10,000  annually. 

(6)  Banks,  state  and  national. — There  is  a  tax  of  one-fourth  of  1 
per  cent  per  annum  on  the  cash  value  of  all  bank  shares,  paid  by 
the  bank,  which  has  a  lien  on  the  dividends  and  shares  to  secure  it. 

(7)  Insurance  companies. — All  insurance  companies,  one-half  of  1  per 
cent  per  annum  on  gross  premiums.  All  fire  insurance  companies, 
three-fourths  of  1  per  cent  on  gross  premiums.  All  domestic  insurance 
companies,  $100  annually.  Delaware  State  Grange  Mutual  Fire 
Insurance  Company  is  exempt.  Foreign  guarantee  and  casualty 
companies,  1J  per  cent  per  annum  on  premiums.  All  payable  to 
insurance  commissioner  for  use  of  state. 

(8)  Telegraph  companies. — Sixty  cents  per  mile  for  the  longest  wire 
in  the  state,  annually;  30. cents  per  mile  for  the  next  longest  wire  in 
the  state,  annually:  20  cents  per  mile  for  each  other  wire  in  the  state, 
annually.  (N.  B. — The  compiler  assumes  that  this  tax  was  repealed 
by  chapter  166  of  Volume  XXI,  Part  II,  Session  Laws  of  1899,  but 
there  is  no  distinct  statement  to  that  effect.) 

(9)  Express  companies. — Five  per  cent  of  gross  earnings  in  the  state. 
(N.  B. — Same  statement  as  under  (8).) 

(10)  Other  companies. — Every  telegraph,  telephone,  cable,  or  electric 
light  company;  or  company  organized  for  the  distribution  of  electricity, 
heat,  or  power;  or  organized  for  the  purpose  of  producing  or  distributing 
steam,  heat,  or  power;  every  express  company  not  owned  by  a  railroad 
company  and  not  otherwise  taxed;  every  company  organized  for  the 
production,  distribution,  or  sale  of  gas;  every  parlor,  palace,  or  sleeping 
car  company;  every  oil  or  pipe-line  company;  every  life  insurance  com- 
pany; every  fire,  marine,  live  stock,  casualty,  or  accident  insurance 
company,  except  mutual  fire  insurance  companies  which  do  not  issue 
policies  on  the  stock  plan,  hereafter  incorporated  under  the  laws  of 
this  state  shall  pay  an  annual  tax  for  the  use  of  the  state  by  way  of  a 
license  for  its  corporate  franchise.  This  tax  is  based  on  a  report  made 
to  the  secretary  of  state  showing,  among  other  things,  the  receipts 
within  the  state.  The  rate  is  1  per  cent  of  the  gross  receipts  in  the 
state  for  telephone,  telegraph,  cable,  and  express  companies;  two-fifths 
of  1  per  cent  of  gross  earnings  for  electric  heat  companies,  etc.,  together 
with  4  per  cent  on  all  dividends  in  excess  of  4  per  cent;  three-fifths  of 
1  per  cent  of  gross  earnings  for  pipe  lines;  three-fourths  of  1  per  cent 
of  gross  premiums  for  insurance  companies  other  than  life;  three- 
fourths  of  1  per  cent  on  surplus  of  life  insurance  companies,  together 
with  a  franchise  tax  of  thirty-one  one-hundredths  of  1  per  cent  on  gross 
premiums;  1$  per  cent  on  gross  receipts  of  parlor  car  companies.  All 
other  corporations  incorporated  under  the  laws  of  this  state  pay  annu- 
ally one-twentieth  of  1  per  cent  on  all  amounts  of  capital  stock  issued 
and  outstanding  up  to  $3,000,000;  $3,000,000  to  $5,000,000,  one-for- 
tieth of  1  per  cent;  and  any  further  sum,  $30  per  million. 

These  corporation  taxes  do  not  apply  to  railroad,  canal,  or  banking 
corporations;  purely  charitable  or  educational  associations;  savings 
banks;  cemetery  or  religious  corporations;  manufacturing  or  mining 


corporations.  These  taxes  are  collected  by  the  state  treasurer  on  the 
basis  of  a  report  filed  with  the  secretary  of  state.  There  is  also  a  gen* 
eral  retaliatory  tax  against  all  foreign  corporations,  United  States  or 
other. 

V.  Business  taxes  and  licenses. 

(1)  Auctioneers,  $10  annually;  stallions  or  jacks  for  use  of  mares, 
$10  annually;  stallions  or  jacks,  nonresident,  $20  annually;  eating 
houses,  $25  annually;  photographer,  $20  annually;  broker,  $100  an- 
nually; real  estate  agent,  $50  annually;  juggler,  $25  annually;  circus, 
$100  annually;  lawyer,  $10  annually;  physician,  $10  annually;  den- 
tist, $10  annually;  conveyancer,  $10  annually;  private  banker,  $100 
annually;  merry-go-rounds,  switch  backs,  etc.,  $25,  $50,  or  $75  annu- 
ally.    Collected  by  clerk  of  the  peace  in  any  county. 

(2)  Insurance  agents  of  foreign  life  companies,  $25  annually;  in- 
surance agents  of  foreign  fire  companies,  $25  annually;  insurance 
agents  of  other  foreign  insurance  companies,  $25  annually.  Agencies 
of  the  last-named  companies  may,  however,  be  carried  on  without 
special  license  if  other  license  be  held.  Collected  by  insurance  com- 
missioner. 

(3)  All  manufacturers,  $5  per  annum;  and  $1  per  annum  on  first 
$1,000  or  less  of  cost  of  raw  material,  and  10  cents  per  $100  on  all  over 
$1,000.  Millers  are  exempt  on  custom  work.  Collected  by  the  clerk 
of  the  peace  in  each  county  for  the  benefit  of  the  state. 

(4)  Oyster  catchers  pay  to  the  collector  of  oyster  revenue  $5  per 
annum.     In  certain  places  the  license  is  $20. 

(5)  Hotels  and  saloons  selling  intoxicating  liquors  by  the  drink,  in 
towns  and  cities  having  a  population  over  10,000,  annually  $300;  in 
other  towns  and  cities,  $200.  Hotels  and  saloons  selling  intoxicating 
liquors  in  quantities  less  than  one  quart,  to  be  drunk  off  the  premises, 
in  addition  to  the  above,  $25;  wholesale  liquor  dealers,  $100.  Drug- 
gists selling  intoxicating  liquors  for  medicinal  purposes,  $20;  for  the 
manufacture  of  spirituous  or  alcoholic  liquors  for  sale,  annually  $200. 
If  such  manufacturers  desire  to  operate  for  only  portions  of  the  year, 
monthly  licenses  at  the  rate  of  $20  per  month. 

B.    FEES. 

Commissions  by  the  governor. — Prothonotaries,  $50;  recorder  of 
deeds,  $50;  register  of  wills,  $50;  clerk  of  peace,  $50;  clerk  of  orphans' 
courts,  $25;  sheriff,  $50.  Impressions  of  the  great  seal,  $1.  By  sec- 
retary of  state. — For  commission  to  attorney-general,  coroner,  justice 
of  peace,  and  register  of  chancery,  $10.  For  commission  to  notary 
public  and  commissioner  of  deeds,  each,  $10;  constable,  when  appointed 
by  the  governor,  $5.  Insurance  commissioner,  fee  for  agent's  license, 
50  cents. 

Secretary  of  state. — Fees  for  incorporation  (known  as  "  private  laws  ") 
when  the  capital  stock  does  not  exceed  $50,000,  $20;  and  for  each  addi- 
tional sum  20  cents  per  thousand  dollars.  Fees  for  certifying  to  di- 
vo  ce  acts,  $10,  and  all  other  private  laws,  $20. 

D.    INCOME    FROM    PUBLIC    PROPERTY. 

Investments  in  certain  bank  shares. 

Interest  on  a  loan  of  $5,000  to  Suffolk  county. 

County  Revenues. 

a.   TAXES. 

I.    The  general  property  tax. 
1.  Base — 

a.  The  property  included  and  exempt. — All  real  and 
personal  property  not  specially  exempt  is  subject  to 
taxation.  Ground  rents  are  included,  and,  until  1899, 
polls  also. 

None  of  these  terms,  however,  are  defined  for  pur- 
poses of  taxation. 


676 


WEALTH,  DEBT,  AND  TAXATION. 


Exemptions,  in  addition  to  public  property,  are:  The  property  of 
churches,  religious  societies,  colleges,  and  charitable  corporations; 
provisions  necessary  for  the  use  and  consumption  of  the  owner  and  his 
family  for  a  year  (not  including  live  stock) ;  farming  utensils ;  the  work- 
ing tools  of  mechanics  or  manufacturers;  the  implements  of  a  person's 
trade  or  profession;  stock  on  hand  of  a  manufacturer  or  tradesman; 
household  furniture  other  than  plate;  grain  and  the  produce  of  land; 
wearing  apparel;  ready  money;  goods,  wares,  and  merchandise  im- 
ported; and  vessels  trading  from  any  part  of  the  state. 

Railroad  property  within  the  right  of  way  is  technically  exempt,  as 
railroads  are  taxed  in  other  ways  for  state  purposes. 

b.  Assessment. — The  assessment  is  made  by  the  lo- 
cal or  "hundred"  assessors  on  information,  but  they 
may  require  statements  from  the  owners  of  property. 
Fraudulent  returns  are  subject  to  a  penalty  of  $40; 
and  refusal  to  make  returns,  a  penalty  of  $10  and  the 
doubling  of  the  assessment.  Evasion  after  assess- 
ment is  punishable  by  a  fine  of  $30  and  the  doubling 
of  the  assessment. 

The  assessment,  which  is  made  every  fourth  year, 
must  be  completed  by  January  1.  The  last  one  was 
in  1901. 

Lands  and  buildings  thereon  are  assessed  by  the  assessors  in  each 
hundred  at  their  true  value  in  money  once  every  four  years.  Homes 
and  lots  in  cities,  etc.,  are  assessed  on  the  basis  of  annual  rental  at 
$100  for  every  $12  rental  plus  any  excess  of  true  value  thereover. 
Rents  are  assessed  by  the  assessor  in  each  hundred  at  the  rate  of 
$100  for  each  $8  received,  and  are  assessed  to  the  persons  receiving  the 
same.  Tenants  may  pay  the  taxes  on  rents  and  deduct  the  same  from 
rents  due. 

Personal  property  is  assessed  once  every  four  years  by  the  assessors 
of  the  hundreds,  and  the  roll  is  corrected  annually  to  include  new  ar- 
rivals, new  acquisitions  of  property,  and  persons  who  have  come  of  age, 
with  corresponding  deductions.  Silver  plate  is  valued  at  $1.10  per 
ounce.  In  practice  but  very  little  personal  property  is  assessed  for 
the  general  property  tax.     (See  Municipal  revenues.) 

Every  freeman  over  21  years  of  age  was  formerly  rated  on  his  poll  at 
not  less  than  $140  nor  more  than  $2,700,  as  of  personal  property.  In 
1898  a  regular  per  capita  tax  was  established,  and  in  1899  the  above 
tax  on  polls  was  repealed. 

In  1898  assessors  were  instructed  to  assess  investments  in  money  at 
three-fourths  their  true  value.  The  rate  was  to  be  30  cents  on  each 
$100  and  one-fourth  of  the  proceeds  was  to  be  paid  to  the  state  and 
three-fourths  to  the  county.     (Declared  unconstitutional  in  1901.) 

•  The  assessor  is  paid  by  fees  allowed  by  the  levy  court. 

c.  Equalization. — The  levy  court  revises  and  cor- 
rects the  assessment  list  and  equalizes  all  assessments. 

2.  Rate— 
The  levy  court  shall  every  year  calculate  and  settle 
the  amount  of  the  road  tax,  the  poor  tax,  and  the 


county  tax  and  apportion  the  same  on  the  hundreds 
at  a  certain  rate  per  $100  of  assessments. 
3.   Collection — 

Taxes  are  collected  by  the  collectors  in  each  hun- 
dred, under  warrant  of  the  levy  court.  They  are  pay- 
able on  demand  after  the  second  Tuesday  in  October, 
and  if  not  paid  within  ten  days  after  demand,  may  be 
collected  by  distress  and  sale  of  personal  property. 
If  there  be  no  personal  property  sufficient,  they  revert 
on  real  estate  and  tenements,  and  if  that  fail,  the  body 
may  be  imprisoned. 

On  all  taxes  paid  before  the  1st  day  of  October  there 
is  an  abatement  of  5  per  cent;  before  December  1, 
3  per  cent;  and  on  all  taxes  unpaid  on  the  1st  day  of 
January,  5  per  cent  penalty  is  added. 

The  collector  is  paid  by  fees  allowed  by  the  levy 
court,  not  to  exceed  8  per  cent  of  collection. 

II.  Poll  tax. 

Polls  were  formerly  assessed  as  if  property  (see 
above),  and  the  payment  was  a  prerequisite  to  the 
exercise  of  the  electoral  franchise.  In  1898  a  law  was 
passed  establishing  a  regular  capitation  tax,  to  be 
levied  by  the  levy  court  at  not  to  exceed  $1.25  nor  to 
be  less  than  25  cents,  and  to  be  uniform  throughout 
the  county  in  which  it  was  levied.  In  1899  the  old 
tax  on  polls,  at  a  valuation  as  if  property,  was  repealed. 

III,  IV,  and  V.  Inheritance  tax,  corporation  taxes,  and 
business  taxes  and  licenses. 

The  inheritance  and  corporation  taxes,  as  well  as 
most  of  the  business  taxes  and  licenses,  are  reserved 
for  the  state. 

Municipal  Revenues. 

The  revenue  system  of  the  cities  is  in  general  simi- 
lar to  that  for  the  counties,  and  requires  no  special 
description.  In  many  cities,  however,  horses  and 
mules  are  subject  to  a  per  capita  tax.  Local  laws 
and  customs  which  authorize  this  and  other  special 
taxes  contribute  to  make  the  general  property  tax 
almost  wholly  one  of  realty. 

*  School  Revenues. 

The  schools  are  supported  by  the  state  school  fund* 
which  is  made  up  of  money  derived  from  the  United 
States  deposits  of  1836  and  an  appropriation  from  the 
state  treasury,  as  well  as  by  a  county  levy  and  by 
special  school  district  levies. 


DISTRICT  OF  COLUMBIA. 


The  District  of  Columbia  is  a  municipal  corporation, 
governed  by  a  board  of  three  commissioners  appointed 
by  the  President  of  the  United  States.  The  District 
draws  its  revenues  from  the  general  property  tax,  from 
taxes  upon  the  gross  receipts  of  certain  corporations, 

1  This  compilation  is  derived  mainlv  from  the  following  sources: 

Act  of  Congress  of  August  14/ 1894,  chapter  287,  Fifty-third 
Congress,  Rev.  Stat.,  page  240,  chapter  287. 

Act  of  February  14,  1902. 

Act  of  Congress  of  July  1,  1902,  to  provide  for  expenses  of  the 
fiscal  year  ending  June  30,  1903.  Public  Laws  of  the  United  States, 
Fifty-first  Congress,  1901-1902. 


and  also  from  an  elaborate  system  of  license  taxes  on 
various  businesses.  There  are  no  poll  or  inheritance 
taxes. 


The  officers  most  directly  concerned  with  taxation 
are: 

(1)  Assessor  of  the  District. 

(2)  Board  of  assistant  assessors,  composed  of  five  members,  appointed 
as  a  permanent  board  by  the  commissioners  of  the  District. 

(3)  Excise  board,  composed  of  three  members  of  the  permanent  board 


TAXATION  AND  REVENUE  SYSTEMS— DISTRICT  OF  COLUMBIA. 


677 


of  assistant  assessors,  selected  by  the  assessor  of  the  District,  for  the 
ns>cssment  of  real  estate. 

(4)  Board  of  personal  tax  appraisers,  composed  of  the  two  assistant 
assessors  not  on  the  excise  board,  who  assess  personal  property. 

(5)  Board  of  equalization  and  review  of  real  estate  assessments  and 
board  of  personal  tax  appeals,  composed  of  the  board  of  assistant  assess- 
ors, with  the  assessor  of  the  District  as  chairman. 

(6)  Collector  of  taxes  of  the  District  of  Columbia. 

District  Revenues. 

A.    TAXES. 

I.    The  general  property  tax. 

1.  Base — 

a.  The  property  included  and  exempt. — Property,  real 
and  personal,  is  subject  to  taxation  except  as  specially 
exempted.  There  is  no  definition  of  real  and  personal 
property  for  purposes  of  taxation. 

Exemptions,  in  addition  to  public  property. are:  Churches,  cemeteries, 
libraries,  schools,  benevolent  and  charitable  institutions,  personal  prop- 
erty of  scientific  institutions,  property  used  for  educational  purposes, 
private  libraries,  schoolbooks,  wearing  apparel,  articles  of  personal 
adornment,  family  portraits,  household  effects  to  $1,000,  the  Corcoran 
Art  Building,  and  the  Soldiers'  Home  and  grounds. 

b.  Assessment. — The  assessment  of  real  estate  is  made 
by  three  members  of  the  board  of  assistant  assessors, 
called  the  real  estate  and  excise  board. 

Real  estate,  including  improvements,  is  to  be  as- 
sessed at  not  less  than  two-thirds  of  the  true  value. 
The  assessment  was  to  be  made  in  1896  and  every  third 
year  thereafter;  the  value  of  the  improvements  to  be 
separately  estimated.  Annually,  improvements  of 
over  $500  in  value  are  to  be  added  or  damages  to  that 
extent  to  be  deducted. 

Personal  property  is  assessed  annually  by  "the 
board  of  personal  tax  appraisers."  Every  person  or 
corporation  is  required  to  fill  out,  under  oath,  a  sched- 
ule of  personal  property,  the  fair  cash  value  of  which  is 
to  be  entered  by  the  assessors.  A  penalty  of  20  per 
cent  is  imposed  for  failure  to  make  returns. 

Dealers  in  general  merchandise  are  assessed  on  the  average  stock  in 
trade  during  the  year. 

c.  Equalization. — The  valuation  of  personal  prop- 
erty is  equalized  by  the  board  of  personal  tax  appeals. 

Real  estate  values  are  equalized  by  the  board  of 
equalization  and  review  in  every  third  yea"  when  the 
assessment  is  made. 

2.  Rate— 

Real  estate  and  improvements  thereon  are  to  be 
taxed  at  1 J  per  cent  upon  the  assessed  valuation  there- 
of, which  is  to  be  not  less  than  two-thirds  of  the  true 
value.  Personal  property  is  taxed  at  the  same  rate, 
but  upon  the  fair  cash  value. 

3.  Collection — 

Taxes  are  collected  by  the  collector  of  the  District. 
If  taxes  on  personal  property  are  not  paid  by  June  1 , 
they  may  be  oollected  by  distraint.  If  goods  and 
chattels  are  lacking,  the  collector  may  levy  on  real 


property.  The  whole  tax  on  real  and  personal  prop- 
erty is  payable  in  May  of  each  year,  but  one-half  may 
be  paid  in  November.  The  penalty  for  delinquency, 
which  is  1  per  cent  a  month,  begins  to  accrue  June  1. 
Advances,  with  interest  at  2  per  cent,  are  made  to  the 
District  from  the  Treasury  of  the  United  States  for 
the  expenses  of  the  District. 
II  and  III.  Poll  tax  and  inheritance  tax. 
There  are  no  poll  or  inheritance  taxes. 

IV.  Corporation  taxes. 

Corporations,  other  than  those  mentioned  later  as 
taxed  on  gross  earnings,  are  taxed  upon  their  capital 
stock,  which  is  to  be  appraised  in  bulk  by  the  board  of 
personal  tax  appraisers,  at  the  rate  of  1J  per  cent  of 
the  assessed  valuation.  Since  1904  business  corpora- 
tions having  no  special  franchises  are  taxed  as  individ- 
uals. The  value  of  the  real  estate  of  the  corporations 
in  the  District  is  to  be  deducted. 

Newspapers,  real  estate,  and  mercantile  companies 
are  to  be  assessed  and  taxed  as  individuals.  Building 
associations  are  required  to  pay  4  per  cent  per  annum 
on  their  gross  earnings.  In  1904  this  was  made  2  per 
cent  on  entire  gross  earnings.  Savings  banks,  without 
capital  stock,  pay  H  per  cent  per  annum  upon  surplus 
and  undivided  profits.  In  1904  this  was  made  4  per 
cent,  less  amount  paid  as  interest  to  depositors.  As 
tiustees  for  their  stockholders,  all  national  banks,  all 
other  banks,  and  trust  companies  in  the  District,  and 
all  gas,  electric  lighting,  and  telephone  companies  are 
required  to  make  report  to  the  personal  tax  appraisers 
of  gross  earnings  and  pay  taxes  as  follows: 

Banks  and  trust  companies,  6  per  cent  per  annum;  gas  companies, 
5  per  cent  per  annum;  electric  light  and  telephone  companies,  4  per 
cent  per  annum;  street  railroad  companies, 4  percent  per  annum;  insur- 
ance companies,  1J  per  cent  per  annum;  fidelity  companies,  l\  per  cent 
per  annum;  since  1904  title  companies,  1J  per  cent  per  annum.  Real 
estate  is  also  taxed  as  other  real  estate. 

V.  Business  taxes  and  licenses. 

Licenses  are  required  for  businesses,  trades,  and 
professions  as  follows: 

Apothecaries,  $6  per  annum;  auctioneers,  $100  per  annum;  com- 
mission merchants,  $40  per  annum;  cattle  dealers,  $15  per  annum; 
passenger  vehicles  for  hire — one  horse,  $6  per  annum;  others,  $9  per 
annum;  driver's  badge,  50  cents  per  annum;  livery  stables — 10  stalls, 
$25  per  annum  ($2  for  each  one  additional) ;  garage  for  autovehicles — 
ten  vehicles,  $25  per  annum  ($2  for  each  one  additional);  coach  lines — 
vehicles  with  capacity  of  ten  passengers,  $6  per  annum;  over  ten  pas- 
sengers, $12  per  annum:  real  estate  brokers,  $50  per  annum;  guarantee 
companies,  $100  per  annum;  ticket  brokers,  $25  per  annum;  hotels, 
$1  per  room  (minimum),  $30  per  annum;  restaurants,  $18  per  annum; 
theaters  and  halls,  $100  per  annum;  exhibitions,  $100  per  annum,  $10 
per  week  first,  $5  thereafter,  $3  per  day;  conductors  of  concerts,  $3 
per  day;  circuses,  $200  per  day;  athletic  grounds  (admission  charged), 
$20  per  week;  picnic  resorts  (admission),  per  annum,  $100;  per  week, 
$10,  and  $5  after  the  first  week;  skating  rinks,  etc.,  per  day,  $3;  shoot- 
ing galleries,  fencing  schools,  etc.,  $12  per  annum;  merry-go-rounds, 
$12  first  week,  $10  subsequent  weeks,  $3  per  day;  slot  machines,  $2 
per  annum;  Turkish  baths,  $25  per  annum;  massage  establishments, 
$25  per  annum;  fortune  tellers,  $25  per  annum;  hucksters  and  produce 
dealers,  per  vehicle,  $12  per  annum;  fuel  hucksters,  $5  per  annum- 


678 


WEALTH,  DEBT,  AND  TAXATION. 


peddlers,  $25  per  annum;  private  banks  or  bankers  not  incorporated, 
$250  per  annum;  general  brokers,  $250  per  annum;  Washington  Stock 
Exchange  (for  all  members),  $500  per  annum;  members  of  other 
exchanges,  $100  per  annum;  note  brokers,  $100  per  annum;  brewers  and 
brewers'  agents,  $250  per  annum;  distillers  or  rectifiers  of  spirits,  $250 
per  annum;  wholesale  license,  $300  per  annum;  barroom,  $800  per 
annum;  billposters,  $20  per  annum;  inflammable  oil  tanks,  $10  per 
annum;  laundries,  steam,  $20   per  annum;   laundries,  hand,  $10  per 


annum;  employment  offices,  $10  per  annum;  secondhand  dealers,  $40 
per  annum;  pawnbrokers,  $100  per  annum;  boarding  houses  (public), 
per  room,  $5  per  annum;  claim  agents,  $25  per  annum;  contractors, 
$25  per  annum;  cigar  dealers,  $12  per  annum;  confectionery  establish- 
ments, $12  per  annum;  dealers  in  the  several  markets,  $5  per  annum; 
florists,  $15  per  annum;  land  and  improvement  companies,  $50  per 
annum;  undertakers,  $25  per  annum. 


FLORIDA.1 


The  revenues  of  Florida  are  about  evenly  divided 
between  the  general  property  tax  and  a  long  series  of 
general  and  special  license  taxes.  There  are  no  cor- 
poration taxes  of  importance,  and  there  is  no  inherit- 
ance tax. 

CONSTITUTIONAL    PROVISIONS. 


ARTICLE   HI. 

Sec.  20.  The  legislature  shall  not  pass  special  or  local  laws  in  any  of 
the  following  enumerated  cases:  *  *  *  for  assessment  and  collection 
of  taxes  for  state  and  county  purposes. 

ARTICLE    IX. 

Sec.  1.  The  legislature  shall  provide  for  a  uniform  and  equal  rate  of 
taxation,  and  shall  prescribe  such  regulations  as  shall  secure  a  just 
valuation  of  all  property,  both  real  and  personal,  excepting  such 
property  as  may  be  exempted  by  law  for  municipal,  educational, 
literary,  scientific,  religious,  or  charitable  purposes. 

Sec.  2.  The  legislature  shall  provide  for  raising  revenue  sufficient  to 
defray  the  expenses  of  the  state  for  each  fiscal  year,  and  also  a  sufficient 
sum  to  pay  the  principal  and  interest  of  the  existing  indebtedness  of  the 
state. 

Sec.  3.  No  tax  shall  be  levied  except  in  pursuance  of  law. 

Sec.  5.  The  legislature  shall  authorize  the  several  counties  and 
incorporated  cities  or  towns  in  the  state  to  assess  and  impose  taxes  for 
county  and  municipal  purposes,  and  for  no  other  purposes,  and  all 
property  shall  l>e  taxed  upon  the  principles  established  for  state  taxa- 
tion. But  the  cities  and  incorporated  towns  shall  make  their  own 
assessments  for  municipal  purposes  upon  the  property  within  their 
limits.  The  legislature  may  also  provide  for  levying  a  special  capita- 
tion tax  and  a  tax  on  licenses.  But  the  capitation  tax  shall  not  exceed 
one  dollar  a  year  and  shall  be  applied  exclusively  to  common  school 
purposes.  (Article  VI,  section  8,  permits  the  legislature  to  make  pay- 
ment of  this  tax  a  prerequisite  for  exercise  of  the  suffrage.) 

Sec.  8.  No  person  or  corporation  shall  be  relieved  by  any  court  from 
the  payment  of  any  tax  that  may  be  illegal  or  illegally  or  irregularly- 
assessed  until  he  or  it  shall  have  paid  such  proportion  of  his  or  its  taxes 
as  may  be  legal,  and  legally  and  regularly  assessed. 

Sec.  9.  There  shall  be  exempt  from  taxation  property  to  the  value 
of  two  hundred  dollars  to  every  widow  that  has  a  family  dependent 
on  her  for  support,  and  to  every  person  that  has  lost  a  limb  or  been 
disabled  in  war  or  by  misfortune. 

article  xii. 

Sec.  6.  A  special  tax  of  one  mill  on  the  dollar  of  all  taxable  property 
in  the  state,  in  addition  to  the  other  means  provided,  shall  be  levied 
and  apportioned  annually  for  the  support  and  maintenance  of  public 
free  schools. 

•The  following  compilation  is  derived  mainly  from  the  following 
sources: 

The  Revised  Statutes  of  Florida,  1892. 

The  Session  Laws  since  1892. 

A  compilation  of  the  Laws  for  the  Assessment  and  Collection  of  Rev- 
enue, etc.,  by  A.  C.  Croom,  comptroller.  State  Printer,  Tallahassee, 
Fla.,  1903. 


Sec.  8.  Each  county  shall  be  required  to  assess  and  collect  annually 
for  the  support  of  public  free  schools  therein,  a  tax  of  not  less  than 
three  mills  nor  more  than  five  mills  on  the  dollar  of  all  taxable  property 
in  the  same. 

Sec.  9.  The  county  school  fund  shall  consist,  in  addition  to  the  tax 
provided  for  in  section  8  of  this  article,  of  the  proportion  of  the  interest 
of  the  state  school  fund  and  of  the  one  mill  state  tax  apportioned  to  the 
county;  the  net  proceeds  of  all  fines  collected  under  the  penal  laws  of 
the  state  within  the  county;  all  capitation  taxes  collected  within  the 
county;  and  shall  be  disbursed  by  the  county  board  of  public  instruc- 
tion solely  for  the  maintenance  and  support  of  public  free  schools. 

Sec.  10.  The  legislature  may  provide  for  the  division  of  any  county 
or  counties  into  convenient  school  districts;  *  *  *  an(j  for  (ne 
levying  and  collection  of  a  district  school  tax,  for  the  exclusive  use  of 
public  free  schools  within  the  district,  whenever  a  majority  of  the 
qualified  electors  thereof  that  pay  a  tax  on  real  or  personal  property 
shall  vote  in  favor  of  such  levy:  Provided,  That  any  tax  authorized,  by 
this  section  shall  not  exceed  three  mills  on  the  dollar  in  any  one  year 
on  the  taxable  property  of  the  district. 

article  viii. 

Sec.  7.  (Provides  for  division  of  counties  by  county  commissioners 
into  taxation  districts  and  the  appointment  of  an  assistant  assessor  of 

taxes.) 

OFFICERS. 

The  officers  most  directly  concerned  with  taxa- 
tion are : 

(1)  The  count}-  assessor  of  taxes  elected  for  a  term  of  two  years. 

(2)  The  count}'  tax  collector  elected  for  a  term  of  two  years. 

(3)  The  board  of  county  commissioners,  of  five  members,  elected  for 
a  term  of  two  years,  which  reviews  and  equalizes  the  assessments. 

(4)  The  comptroller,  elected  for  four  years. 

State  Revenues. 

a.   TAXES. 

I.   The  general  property  tax. 
1.  Base — 
a.   The  property  included  and  exempt. — All  property, 
real  and  personal,  in  the  state,  not  expressly  exempt, 
is  subject  to  this  tax. 

(1)  "  Real  property  "  includes  land  and  buildings,  fixtures  and  im- 
provements. 

(2)  "Personal  property"  includes  goods  and  chattels;  moneys  and 
effects;  all  boats  and  vessels;  all  debts  due,  or  to  become  due  from 
solvent  debtors,  whether  on  account,  contract,  note,  or  otherwise; 
and  all  public  stocks  or  shares  in  all  incorporated  or  unincorporated 
companies. 

(3)  Exempt  besides  all  public  property  are :  The  property  of  fire  com- 
panies; the  property  of  literary,  educational,  benevolent,  charitable,  and 
scientific  institutions;  all  houses  of  public  worship,  the  lots  on  which 
they  stand,  and  the  furnishings;  parsonages  burying  grounds;  public 
libraries;  agricultural  societies;  and  $200  to  every  widow  dependent  on 


TAXATION  AND  REVENUE  SYSTEMS— FLORIDA. 


679 


her  own  exertions,  and  to  every  person  who  has  lost  a  limb  or  been 
disabled  in  war  or  by  misfortune.  By  construction,  nonbearing  fruit 
trees  are  exempt. 

b.  Assessment. — The  assessment  is  made  by  the 
county  assessors  and  their  assistants.  It  refers  to 
the  first  day  of  January  and  the  roll  is  to  be  made  up 
between  that  date  and  the  first  day  of  July.  Property 
in  general  is  assessed  where  located.  The  assessor 
makes  up  the  list  on  the  basis  of  returns  by  the  owners 
and  ' '  shall  require  any  person  to  make  oath  to  the  cor- 
rectness of  the  list."  Any  person  refusing  to  take  such 
an  oath  loses  the  right  to  a  reduction  of  valuation. 
But  the  assessor  alone  determines  the  values.  Assess- 
ment is  required  to  be  at  "true  value." 

Railroad  companies,  including  street  railroads,  and  also  telegraph 
and  telephone  companies,  are  assessed  on  their  property  by  the  comp- 
troller, assisted  and  advised  by  the  attorney-general  and  the  treasurer 
of  the  state;  the  track  and  other  real  property  used  in  the  business  is 
assessed  where  located;  the  rolling  stock  and  the  like  is  assessed  as  a 
whole  and  apportioned  to  each  county  and  city  on  a  mileage  basis.  In 
the  case  of  telegraph  companies  the  franchise  is  to  be  included. 

A  peculiarity  in  the  assessment  of  real  estate  is  that  the  assessor 
must  l>egin  with  the  lowest  numbered  section  in  each  township,  or  the 
lowest  numbered  block  or  lot  in  other  surveys  and  proceed  consecu- 
tively. Lands  which  have  escaped  taxation  may  be  assessed  for  back 
taxes  for  three  years. 

National  bank  shares  are  assessed  at  the  place  where  the  bank  is 
located.  The  bank  is  made  the  agent  of  the  stockholders  for  the  pay- 
ment of  the  tax,  which  may  be  retained  from  dividends. 

Assessors  are  paid  by  commissions  paid  by  the  state  and  county: 
On  the  first  $2,000,  10  per  cent;  on  the  next  $2,000,  5  per  cent;  and  on 
the  balance,  2  per  cent. 

c.  Equalization. — The  board  of  county  commission- 
ers reviews  and  revises  the  assessments  and  equalizes 
the  assessment  of  real  estate  by  raising  or  lowering' 
the  value  of  any  piece  of  real  estate,  but  it  may  not 
raise  or  lower  the  assessment  of  the  county  as  a  whole. 
It  appears  to  have  no  power  to  equalize  the  assessment 
of  personal  property. 

There  is  no  equalization  between  counties. 

2.  Rate- 
It  is  customary  for  the  legislature  to  determine  the 

rate  and  to  make  a  direct  levy  for  each  year  by  statute, 
specifying  the  rate  for  each  general  purpose.  The  con- 
stitution requires  a  levy  of  1  mill  on  the  dollar  of 
assessed  valuation  for  school  purposes.  It  is  also  cus- 
tomary to  give  the  governor  power  to  lower  the  rate 
if  "he  discovers  from  the  aggregate  assessment  and 
from  other  sources  of  revenue"  that  a  reduction  is 
justified. 

The  chief  items  recognized  by  special  rates  are:  For  the  general  fund, 
usually,  3  mills;  for  the  state  school  fund  fixed  by  constitution,  1  mill; 
for  the  state  board  of  health,  J  mill;  for  the  state  pension  fund,  2  mills. 

3.  Collection — 

State,  county,  and  school  district  taxes,  together 
with  any  special  taxes  authorized  by  the  county  com- 
missioners, are  collected  on  one  roll  by  the  county  tax 
collector.     The  extensions  are  made  by  the  assessor. 


Taxes  are  a  lien  on  any  property  of  the  taxpayer, 
and  may  be  collected  by  distress.  They  are  due  on 
the  first  Monday  in  November  and  become  delinquent 
on  the  first  Monday  in  April.  The  delinquency  pen- 
alties take  the  form  of  extra  fees  to  the  collector.  On 
amounts  less  than  $5  in  taxes  the  fee  is  50  cents;  $5 
to  $10,' 75  cents;  over  $10,  $1.  On  executions  the 
same  fees  are  allowed  as  to  the  sheriff.  On  sales  of 
land,  5  per  cent. 

The  tax  collector  is  paid  by  commissions  borne  by  the  state  and 
county:  On  the  first  $2,000  collected,  10  per  cent;  on  the  second  $2,000 
collected,  5  per  cent;  on  the  balance,  2  per  cent. 

II.  Poll  tax. 

The  poll  tax  is  a  general  tax,  but  is  payable  into 
the  county  school  fund.  (See  County  revenues,  gen- 
eral poll  tax.) 

III.  Inheritance  tax. 

There  is  no  inheritance  tax. 

IV.  Corporation  taxes. 

In  general,  in  matters  of  taxation,  corporations  are 
not  treated  differently  from  individuals;  they  pay 
their  general  property  taxes  and  licenses.  Railroad, 
telegraph,  and  telephone  companies  are  assessed  on 
their  property  by  a  state  board.  There  was  a  license 
tax  on  telegraph  and  telephone  companies  in  1891; 
this  disappeared,  however,  in  the  revised  statutes  of 
1892  and  is  presumably  obsolete. 

The  following  are  the  only  cases  analogous  to  cor- 
poration taxes: 

Insurance  companies,  except  life,  on  gross  premiums,  1  per  cent  per 
annum;  insurance  companies,  life,  fidelity,  and  accident,  on  gross  pre- 
miums, 2  per  cent  per  annum;  sleeping  car  companies  are  taxed  upon 
their  gross  receipts  in  the  state  at  the  rate  of  $1.50  on  each  $100.  The 
Southern  Express  Company  pays  a  special  tax  of  $2,500  per  annum. 

V.  Business  taxes  and  licenses- 
Keepers  of  hotels  or  boarding  houses — 200  or  more  lodgers,  annually, 

$1 50;  100  to  200  lodgers,  annually ,  $100 ;  75  to  100  lodgers,  annually,  $50; 
50  to  75  lodgers,  annually,  $25;  25  to  50  lodgers,  annually, $15;  10  to  25 
lodgers,  annually,  $10.  Restaurants  seating  over  20  persons,  annually, 
$15;  restaurants  seating  less  than  20  persons,  annually,  $5;  billiard  tables, 
etc.,  annually,  $25;  bowling  alleys,  skating  rinks,  and  shooting  galleries, 
annually,  $15;  billiard  table  not  connected  with  saloon,  annually,  $10; 
dealers  in  spirituous,  vinous,  or  malt  liquors,  in  each  county,  no  fraction 
of  a  year  being  recognized,  annually ,  $500  (drummers  are  dealers) :  distill- 
ers and  brewers,  each  county,  annually,  $100;  merchants,  storekeepers, 
and  druggists  with  a  capital  stock  less  than  $1,000,  in  each  county,  annu- 
ally, $3;  up  to  $10,000,  for  each  $1,000,  annually,  $3;  over  $10,000,  for 
each  $1,000,  annually,  $1 ;  dealers  in  cigars,  cigarettes,  and  tobacco,  annu- 
ally, $5;  manufacturers  of  cigars,  for  each  workman  employed,  annually, 
25  cents;  sewing  machine  and  lightning  rod  agents,  for  each  county, 
annually,  $10;  insurance  companies  of  all  kinds  except  plate  glass,  annu- 
ally, $200;  insurance  companies  for  plate  glass,  annually,  $50:  insurance 
agents  paid  by  companies,  for  each  company,  annually,  $5:  insur- 
ance agents,  traveling,  paid  by  companies,  for  each  company,  annually, 
$25;  agents  for  building  and  loan  associations,  annually,  $10;  land 
agents,  annually;  $10;  auctioneers  selling  land  in  towns  of  1,500  inhabi- 
tants or  over,  annually,  $10,  and  on  gross  sales  J  per  cent;  auctioneers 
of  horses  and  mules,  annually,  $00;  auction  sales  of  personal  property, 
gross,  5  per  cent;  livery  stables,  less  than  4  mules  or  horses,  annually,  $5; 


GSO 


WEALTH,  DEBT,  AND  TAXATION. 


4  to  8  mules  or  horses,  annually,  $10;  8  to  12  mules  or  horses,  annually, 
$15;  12  to  20  mules  or  horses,  annually,  $25;  20  to  40  mules  or  horses, 
annually,  $35;  40  to  75  mules  or  horses,  annually,  $50;  keeper  of  stallion 
or  jack,  annually,  $5;  circuses,  annually,  $200;  theatrical  shows,  etc., 
traveling,  in  each  county,  per  day,  $5;  in  fitted  theaters,  in  cities  of 
20,000  inhabitants  or  more,  annually,  $250;  in  cities  of  15,000  to  20,000, 
annually,  $200;  in  cities  of  10,000  to  15,000,  annually,  $150;  in  cities, 
under  10,000,  annually,  $100;  in  cities  under  5,000,  annually,  $25; 
variety  shows  in  which  females  are  employed  as  waitresses,  for  each 
performance,  $50;  hobby  horses,  etc.,  each  county,  $10;  hawkers  or 
street  vendors  of  medicines,  each  city  or  town,  for  each  day,  $100; 
pawnbrokers,  annually,  $100;  itinerant  vendors,  drugs  and  medicines, 
annually,  $500;  boats  for  peddling,  under  20  tons,  annually,  $10;  boats 
for  peddling,  over  20  tons,  annually,  $30;  book  and  picture  agents, 
annually,  $10;  hawkers  and  peddlers,  general,  annually,  $300;  itinerant 
vendors,  general,  in  each  count}-,  annually,  $50  (cripples  as  peddlers 
and  newsboys  are  exempt);  banks  and  bankers,  brokers,  also  water  com- 
panies, gas,  electricity,  or  telephone  companies,  incorporated,  when 
capital  [stock  is  $100,000  or  over,  annually,  $100;  when  $50,000  to 
$100,000,  annually,  $50;  when  $25,000  to  $50,000,  annually,  $30;  when 
less  than  $25,000,  annually,  $20;  when  less  than  $10,000,  annually,  $10; 
but  banks  paying  tax  on  capital  stock  are  exempt.  Express  companies 
in  cities  of  15,000  inhabitants  or  over,  annually,  $200;  in  cities  of  10,000 
to  15,000  inhabitants,  annually,  $100;  in  cities  of  5,000  to  10,000  inhabi- 
tants, annually,  $75;  in  cities  of  3,000  to  5,000  inhabitants,  annually, 
$50;  in  cities  of  1,000  to  3,000  inhabitants,  annually,  $25;  in  villages 
under  1,000  inhabitants,  annually,  $10.  In  1899  express  companies 
were  allowed  to  commute  these  taxes  for  an  annual  payment  to  the 
state  of  $2,500,  which  in  1900  was  raised  to  $3,750.  This  applies  to 
the  Southern  Express  Company.  Steamboats,  $1  per  registered  ton, 
not  to  exceed  annually  $100,  no  license  to  be  less  than  $10,  and  steam- 
ers assessed  as  property  and  so  taxed  are  to  be  exempt.  Dealers  in 
firearms,  bowie  knives,  etc.,  annually,  $10;  dentists,  lawyers,  pension 
agents,  etc.,  annually,  $10. 

(N.  B. — According  to  the  law  of  June  1,  1895;  these 
were  revised  in  1903.) 

All  license  taxes  are  collected  by  the  county  tax 
collector;  blanks  are  issued  through  and  under  seal  of 
the  county  judge,  who  practically  audits  the  collec- 
tions. The  tax  collector  is  paid  by  fees  (see  State 
revenues,  collection,  above). 

b.  fees.  „ 

Collected  by  secretary  of  state. — Charters  of  corporations,  $2  per 
$1,000  of  capital,  minimum  $5,  maximum  $250;  certificate,  under  seal, 
$1.     Special  fee  for  corporations,  $1. 

Collected  by  state  treasurer. — For  examination  of  statements  required 
to  be  returned  by  life  insurance  companies,  and  the  issuance  of  cer- 
tificate relating  thereto,  $5.  A  so-called  commission  tax  is  collected 
by  the  state  treasurer  from  all  officials  who  by  law  are  required  to  give 
bond.  This  tax  must  be  paid  before  any  such  official  can  enter  upon 
the  duties  of  his  office.  The  commission  tax  is  collected  from  officers 
as  follows:  Chief  justice,  $75;  associate  justice,  $70;  circuit  ^judge,  $60; 
cabinet  officer,  $50;  state  attorney,  $30;  clerk  of  circuit  court,  $10; 
sheriff,  $10;  assessor  of  taxes,  $5;  collector  of  revenue,  $5;  all  other 
officers,  $1. 

All  persons  or  corporations  engaged  in  the  manufacture  or  sale  of 
fertilizer  or  commercial  manure  are  to  pay  the  state  treasurer,  through 
the  inspector  of  fertilizers,  an  inspection  tax  or  fee  of  25  cents  per  ton. 

0.    INCOME    FROM  STATE  PROPERTY  AND  SIMILAR  ITEMS. 

Convicts  are  let  out  to  labor  under  contract  by  the 
commissioner  of  agriculture. 


County  Revenues. 


a.    TAXES. 


I.  The  general  property  tax. 

1.  Base — 

The  property  included  and  the  method  of  assessment 
and  of  equalization  are  the  same  for  county  as  for  state 
purposes. 

2.  Rate— 

The  rate  is  determined  by  the  county  commission- 
ers, who  are  usually  authorized  to  do  so  by  the  regular 
tax  levy  law  passed  at  each  session. 

The  usual  limit  is  5  mills  on  the  dollar  for  county  purposes,  but  3 
mills  in  addition  may  be  levied  for  road  purposes. 

3.  Collection — 

By  the  county  tax  collector  in  essentially  the  same 
manner  as  of  state  taxes.  The  collector  is  allowed  the 
same  commissions  as  on  state  taxes. 

II.  Poll  tax. 

a.  General. — Every  male  over  21  and  under  55  years 
of  age,  except  persons  who  have  lost  a  limb  in  battle, 
is  liable  to  a  poll  tax  of  $1.  It  is  collected  by  the  tax 
collector  for  school  purposes. 

b.  Road. — There  is  a  road  poll  tax  in  each  county 
on  all  able-bodied  persons  over  21  and  under  45  years 
of  age,  resident  in  the  county  over  thirty  days,  except 
ministers  of  the  gospel  in  charge  of  congregations. 
This  tax  is  payable  in  labor,  the  rate  being  not  over 
three  days  of  eight  hours  each,  but  may  be  commuted 
at  the  rate  of  $1  per  day.  It  is  collected  by  the  con- 
tractor of  the  road  district. 

Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There  are  no  inheritance  or  special  corporation  taxes 
used  by  the  counties. 
V.  Business  taxes  and  licenses. 

Counties  may  impose  license  taxes  on  the  same  sub- 
jects as  are  so  taxed  by  the  state,  but  such  license 
taxes  may  not  exceed  50  per  cent  of  the  amount  levied 
by  the  state. 

Municipal  Revenues. 

a.    TAXES. 

I.   The  general  property  tax. 

1.  Base — 

The  property  included  is  the  same  as  for  state  taxes. 
Cities  may,  however,  make  their  own  assessment  of 
property  for  taxation,  but  the  valuation  must  not  ex- 
ceed the  last  valuation  thereof  for  state  taxation. 

2.  Rate — 

The  rate  is  fixed  by  the  municipal  authorities,  but 
may  not  exceed  1  per  cent  on  the  state  valuation  ex- 
cept for  debt  charges. 

3.  Collection — 

Essentially  the  same  as  for  state  taxes. 


TAXATION  AND  REVENUE  SYSTEMS— GEORGIA. 


681 


II,  III,  and  IV.  Poll  tax,  inheritance  tax,  and  corpora- 
tion taxes. 
There  are    no    inheritance  or  special    corporation 
taxes  used  by  the  municipalities. 

V.  Business  taxes  and  licenses. 

Municipalities  ma}'  levy  license  taxes  on  the  same 
class  of  subjects  as  are  taxed  in  this  way  by  the  state, 
but  the  rate  shall  not  exceed  50  per  cent  of  the  state 
rates. 

School  Revenues. 

Each  county  levies  for  its  school  fund  not  less  than 
3  nor  more  than  5  mills  on  the  dollar,  and,  by  vote  of 


the  people,  a  special  school  tax  may  be  levied  in 
subdistricts. 

The  state  school  fund  consists  of  the  principal  de- 
rived from  the  sale  of  lands,  the  interest  on  which  is 
paid  to  the  support  of  schools. 

Hunting  licenses,  of  $25  each,  are  paid  into  the  state 
school  fund. 

All  fines  and  forfeitures  and  all  poll  taxes  are  paid 
into  the  county  school  fund.  There  is  besides  a  spe- 
cial constitutional  tax  of  1  mill  levied  for  the  support 
of  schools. 


GEORGIA.' 


The  revenue  system  of  Georgia  is,  like  the  revenue 
systems  of  other  Southern  states,  one  which  combines 
a  general  property  tax  with  a  series  of  license  taxes, 
but,  unlike  some  of  the  other  Southern  states,  the  sys- 
tem of  license  taxes  is  not  very  extensive.  The  licenses 
yielded  in  1902  less  than  a  quarter  of  a  million  dollars 
in  a  total  of  over  three  and  three-quarter  millions,  or 
one-fifteenth. 

Only  the  machinery  for  the  levy  and  collection  of 
taxes  is  permanent.  At  each  session  of  the  general 
assembly  it  is  customary  to  pass  a  "general  tax  act," 
which  indicates  the  subjects  of  taxation  and  the  rates 
levied  upon  each.  Of  these  the  code  compiler  said  in 
1901:  "I  have  not  attempted  to  set  out  the  general 
tax  acts,  *  *  *  for,  while  these  laws  are  of  a  pub- 
lic and  general  nature,  they  are  not  of  a  permanent 
character,  but  their  provisions  are  ever  varying  with 
each  recurring  legislature." 

There  are  certain  peculiarities  in  the  use  of  terms  in 
Georgia,  which  may  cause  confusion  if  not  noted. 
The  term  "assessment"  implies  what  is  elsewhere 
known  as  the  levy  and  the  fixing  of  the  rate ;  the  valua- 
tion of  property  is  not  spoken  of  as  the  assessment. 
The  officer  who  corresponds  to  the  assessor  in  other 
states  is  usually  called  the  tax  receiver  or  receiver  of 
tax  returns;  only  in  cities  is  he  called  assessor.  He 
makes  up  a  "digest"  of  the  lists  returned  by  the  tax- 
payers, which  is  made  up  in  triplicate  and  is  not  known 
either  as  the  "grand  list"  or  the  "duplicate,"  as  in 
other  states.  The  teim  "assessor"  is  applied  to  a 
member  of  a  special  board  called  to  appraise  the  prop- 
erty when  there  is  a  dispute  between  the  taxpayer 
and  receiver.  A  person  who  fails  to  make  return  or 
list  his  property  is  a  "defaulter,"  and  he  who  fails  to 
pay  his  tax  is  an  "insolvent,"  not  a  "delinquent." 

Georgia  regularly  passes  many  special  and  local  acts 
relating  to  the  municipalities,  etc.,  and  the  provisions 

'This  compilation  is  derived  primarily  from  the  following  sources: 
The  Code  of  the  State  of  Georgia,  adopted  December  15,  1895,  in 
three  volumes. 

The  Session  Laws  of  1900. 

Van  Epps's  Supplement  to  the  Code  of  the  State  of  Georgia,  1901. 


of  these  laws  often  modify  materially  the  operation 
of  the  general  laws,  so  far  as  the  localities  affected  are 
concerned.  The  provisions  of  these  laws  are  so  hetero- 
geneous that  they  could  not  be  compiled  within  a  rea- 
sonable space. 

CONSTITUTIONAL    PROVISIONS. 

ARTICLE    IV. 

Sec.  1.  Par.  1.  The  right  of  taxation  is  a  sovereign  right,  inalienable, 
indestructible,  is  the  life  of  the  state,  and  rightfully  belongs  to  the  peo- 
ple in  all  republican  governments,  and  neither  the  general  assembly 
nor  any  nor  all  other  departments  of  the  government  established  by 
this  constitution  shall  ever  have  the  authority  to  irrevocably  give, 
grant,  limit,  or  restrain  this  right;  and  all  laws,  grants,  contracts,  and 
all  other  acts  whatsoever  by  said  government  or  any  department  thereof 
to  effect  any  of  these  purposes  shall  be,  and  are  hereby,  declared  to  be 
null  and  void  for  every  purpose  whatsoever,  and  said  right  of  taxation 
shall  always  be  under  the  complete  control  of,  and  revocable  by,  the 
state,  notwithstanding  any  gift,  grant,  or  contract  whatsoever  by  the 
general  assembly. 

ARTICLE    VII. 

Sec.  1.  Par.  1.  (Enumerates  the  purposes  for  which  alone  the  gen- 
eral assembly  may  exercise  the  powers  of  taxation.) 

Sec.  2.  Par.  1 .  All  taxation  shall  be  uniform  upon  the  same  class  of 
subjects,  and  ad  valorem  on  all  property  subject  to  be  taxed  within  the 
territorial  limits  of  the  authority  levying  the  tax,  and  shall  be  levied 
and  collected  under  general  laws.  The  general  assembly  may,  however, 
impose  a  tax  upon  such  domestic  animals  as,  from  their  nature  and  hab- 
its, are  destructive  of  property. 

Par.  2.  The  general  assembly  may  by  law  exempt  from  taxation  all 
public  property ;  all  places  of  religious  worship  or  burial;  all  institutions 
of  purely  public  charity;  all  buildings  erected  for  and  used  as  a  college, 
incorporated  academy,  or  other  seminary  of  learning;  the  real  and  per- 
sonal estate  of  any  public  library,  and  that  of  any  other  literary  asso- 
ciation used  by  or  connected  with  such  library;  all  books  and  philosoph- 
ical apparatus;  and  all  paintings  and  statuary  of  any  company  or  asso- 
ciation kept  in  a  public  hall  and  not  held  as  merchandise  or  for  purposes 
of  sale  or  gain:  Provided,  That  the'property  so  exempted  be  not  used 
for  purposes  of  private  or  corporate  profit  or  income. 

Par.  3.  No  poll  tax  shall  be  levied  except  for  educational  purposes, 
and  such  tax  shall  not  exceed  one  dollar  annually  upon  each  poll. 

Par.  4.  All  laws  exempting  property  from  taxation,  other  than  the 
property  herein  enumerated,  shall  be  void. 

Par.  5.  The  power  to  tax  corporations  and  corporate  property  shall 
not  be  surrendered  or  suspended  by  any  contract  or  grant  to  which  the 
state  shall  be  a  party. 


682 


WEALTH,  DEBT,  AND  TAXATION. 


Sec.  7.  The  general  assembly  shall  not  have  power  to  delegate  to  any 
county  the  right  to  levy  a  tax  for  any  purpose,  except  for  educational 
purposes  in  instructing  children  in  the  elementary  branches  of  an 
English  education  only;  to  build  and  repair  the  public  buildings  and 
bridges;  to  maintain  and  support  prisoners;  to  pay  juries  and  coro- 
ners, and  for  litigation,  quarantine,  roads,  and  expenses  of  courts;  to 
support  paupers,  and  pay  debts  heretofore  existing. 

ARTICLE    VIII. 

Sec.  4.  Par.  1.  (The  general  assembly  may  authorize  county  school 
tax.) 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  The  "tax  receivers  "  or  "  receivers  of  returns  of  taxable  property, " 
elected  biennially,  one  in  each  county.  (This  officer  corresponds  to  the 
assessor  of  other  states.) 

(2)  The  tax  assessors  in  cities,  three  in  number. 

(3)  The  tax  collectors,  elected  biennially,  one  in  each  county. 

(4)  The  ordinary  of  each  county,  who  acts  as  auditor. 

(5)  The  comptroller-general,  elected  for  two  years. 

State  Revenues. 

a.   TAXES. 

I.    The  general  property  tax. 
1.  Base — 

a.  The  property  included  and  exempt. — All  real  and 
personal  property,  whether  owned  by  individuals  or 
corporations,  resident  or  nonresident,  is  liable  to 
taxation. 

Real  property  and  personal  property  are  not  spe- 
cially defined  for  purposes  of  taxation,  and  the  general 
definitions  prevail.  Interest  in  land  less  than  fee  is 
regarded  as  real  estate. 

There  are  no  special  provisions  defining  the  classes 
of  property  subject  to  taxation. 

•     Mortgages  are  taxed  as  personal  property  without 
special  provision. 

For  exemption,  see  Constitution,  Article  VII,  section  1,  paragraph  2, 
quoted  above. 

b.  Assessment. — The  code  of  Georgia  uses  the  term 
"  assessment "  to  signify  the  determination  by  the 
governor,  to  whom  this  power  is  expressly  delegated, 
of  the  tax  rate  and  the  levy  of  such  rate  upon  the 
valuation  as  previously  determined.  In  this  usage, 
"assessment"  is  very  nearly  identical  with  "levy." 
This  subdivision,  however,  deals  with  valuation,  and 
the  levy  or  assessment  in  the  sense  in  which  that  term 
is  used  in  Georgia  is  to  be  found  below,  under  State 
revenues,  A,  I,  2. 

In  general,  the  taxpayer  is  required  to  furnish  a 
sworn  statement  of  his  property  and  its  valuation  to 
the  tax  receiver.  The  tax  receiver,  however,  may  fix 
a  different  valuation,  which  must  be  at  "  the  fair  mar- 
ket value."  The  assessment  refers  to  the  first  day  of 
April,  and  the  lists  must  be  returned  by  the  first  day  of 
July.     Persons  who  fail  to  return  lists  are  called  de- 


faulters and  are  penalized  by  double  taxation,  while 
defaulting  corporations  are  subject  to  heavy  fines. 

The  tax  receiver  makes  up  from  the  lists  furnished 
by  the  taxpayers  a  digest  made  in  triplicate,  one  copy 
going  to  the  comptroller-general,  one  to  the  ordinary 
of  the  county,  and  one  to  the  tax  collector. 

Back  taxes  not  assessed  nor  collected  in  previous 
years  may  be  assessed  and  collected  in  any  year. 

Tax  receivers  are  compensated  by  fees  at  the  rate  of  one-half  those 
paid  to  the  tax  collector. 

Railroad  property,  including  that  of  street  railroads,  dummy  and 
electric  roads,  is  assessed  by  the  comptroller-general.  Railroads 
operating  in  more  than  one  sfate  are  assessed  on  that  proportion  of 
their  rolling  stock  which  the  mileage  in  Georgia  bears  to  the  total 
mileage.  That  is,  the  unit  rule  is  applied  to  rolling  stock  only.  The 
fixed  property  in  each  county  is  assessed  where  located,  and  the  rolling 
stock  is  assessed  as  a  whole  and  apportioned  among  the  counties  in 
proportion  to  the  value  of  the  fixed  property  in  each.  Until  1902 
no  special  consideration  was  given  to  the  franchise,  but  in  that  year, 
to  take  effect  in  1903,  a  law  was  passed  similar  in  character  to  the 
New  York  special  franchise  tax  law. 

Express,  telephone,  and  telegraph  companies  are  also  assessed 
upon  their  property,  including  the  franchise,  by  the  comptroller-general; 
but  if  the  taxes  assessed  in  this  manner  do  not  amount  to  2J  per  cent 
of  the  gross  earnings  in  Georgia,  their  gross  earnings  are  assessed. 

Sleeping  car  companies,  etc.,  are  assessed  upon  their  cars,  the  num- 
ber assessable  in  Georgia  being  determined  by  the  unit  rule  on  basis 
of  mileage. 

Other  railroad  equipment  companies  are  taxed  as  are  sleeping-car 
companies. 

Banks  are  not  assessed  upon  their  capital,  but  the  shares  of  stock 
are  assessed  to  the  owners  in  the  county  where  the  bank  is  located. 
The.  bank  returns  the  shares  and  pays  the  taxes. 

c.  Equalization. — There  is  no  equalization  properly 
so  called. 

d.  Arbitration. — Whenever  there  is  a  disagreement 
between  the  tax  receiver  and  the  taxpayer  as  to  the 
valuation  of  property,  each  appoints  an  arbitrator; 
these  choose  a  third  to  act  as  umpire ;  and  the  three 
determine  the  value  of  the  property.  The  grand  jury 
in  each  county  inspects  and  corrects  the  returns. 

The  same  procedure  applies  in  the  case  of  corpora- 
tions making  returns  to  the  comptroller-general. 

2.  Rate- 
It  is  the  general  custom  for  the  legislature  at  each 

regular  session  to  pass  a  general  tax  act  for  the  two 
succeeding  years,  authorizing  the  governor,  with  the 
assistance  of  the  comptroller-general,  to  assess  and 
levy  a  tax  on  the  taxable  property  at  rates  specified 
in  the  act.  The  levy  is  completed  when  the  comp- 
troller-general sends  notices  to  the  tax  collectors. 
The  constitution  specifies  the  purposes  for  which 
alone  taxes  may  be  levied,  but  it  is  not  uncommon 
for  the  statutes  to  exceed  these  purposes  and  levy 
for  others. 

The  rates  fixed  in  1901-1902  were:  General  tax,  3T'5  mills;  school 
tax,  2TV  mills;  and  a  rate  sufficient  to  raise  $100,000  each  year  for 
debt  charges. 

3.  Collection — 

Taxes  in  general  are  collected  by  the  county  tax 
collectors,  those  on  certain  corporations  only  being 


TAXATION  AND  REVENUE  SYSTEMS— GEORGIA. 


683 


collected  by  the  comptroller-general.  They  must  be 
paid  between  the  1st  day  of  October  and  the  20th  day 
of  December  in  each  year.  Delinquent  taxpayers 
are  called  insolvents,  and  the  taxes  of  such  persons 
may  be  collected  by  execution.  In  certain  .cases  the 
tax  collector  is  made  ex  officio  sheriff  for  the  purpose 
of  enforcing  collection.  Insolvent  taxes  bear  interest 
at  7  per  cent. 

Collectors  are  paid  by  fees,  as  follows: 

On  the  first  $1,000,  6  per  cent;  on  the  second  $1,000,  4  per  cent; 
on  the  third  $1,000,  3  per  cent;  on  the  fourth  $1,000,  2J  per  cent; 
on  the  fifth  and  sixth  $1,000,  2$  per  cent;  on  the  seventh  and  eighth 
$1,000,  2J  per  cent;  on  the  ninth  to  twelfth  $1,000,  2  per  cent;  on  the 
thirteenth  to  eighteenth  $1,000,  1J  per  cent;  on  the  nineteenth  to 
thirty-sixth  $1,000,  1J  per  cent;  on  all  over  $36,000,  1J  per  cent. 

II.  Poll  tax. 

Every  male  person  between  the  ages  of  "21  and  60 
years  shall  pay  an  annual  poll  tax  of  $1,  collected  as 
other  taxes  by  the  tax  collector.  Exempt  are  all  per- 
sons who  have  lost  a  limb  or  limbs,  or  the  use  of  the 
same,  while  actually  engaged  in  military  service  of  the 
Confederacy. 

III.  Inheritance  tax. 

There  is  no  inheritance  tax. 

IV.  Corporation  taxes. 

Corporations  are  generally  taxed  in  the  same  manner 
as  individuals  on  the  general  property.  (See  under 
General  property  tax,  above.) 

Insurance  companies  of  every  sort,  except  life  and  assessment  com- 
panies, pay  1  per  cent  annually  on  the  net  premiums. 

Express,  telephone,  and  telegraph  companies  are  assessed  upon  their 
property,  but  if  the  taxes  so  assessed  do  not  amount  to  2$  per  cent  of 
the  grass  earnings  they  are  to  pay  that  amount  on  gross  earnings. 

V.  Business  taxes  and  licenses. 

Special  tax  for  liquor  dealers,  including  dispensaries  operated  by 
county  or  municipal  authorities,  steamboats,  dining  cars,  etc.,  $200  for 
each  place  of  business  in  each  county,  which  tax  is  collected  by  the 
county  tax  collector  and  sent  to  the  comptroller-general.  Steamboats 
and  dining  cars,  however,  pay  but  one  license  tax. 

Practitioners  of  law,  medicine,  and  dentistry,  architects,  presidents 
of  express,  telegraph,  railroad,  street  railroad,  steamboat,  telephone, 
electric  light,  sleeping  and  parlor  car  companies,  banks,  building  and 
loan  associations,  and  gas  companies,  or  superintendents  or  agents  of 
such  companies,  per  annum,  $10. 

Artists,  photographic,  etc.,  state,  per  annum,  $10;  loan  agents  in  each 
county,  per  annum,  $10;  auctioneers,  in  each  county,  per  annum,  $25; 
billiard  tables,  etc.,  per  annum,  $25;  game  tables,  flying  horses,  etc.,  per 
annum,  $25;  bowling  alleys,  shooting  galleries,  etc.,  per  annum,  $25; 
peddlers  of  nostrums,  jewelry,  soap,  etc.,  in  each  county,  per  annum, 
$50;  insurance  agents  and  brokers,  in  each  county,  per  annum,  $10: 
matrimonial  agents,  in  each  county,  per  annum,  $100;  traveling  insur- 
ance agents,  state,  per  annum,  $50;  emigrant  agent,  in  each  county,  per 
annum,  $500;  peddlers  in  boats,  in  each  county,  per  annum,  $50;  light- 
ning rod  agents,  in  each  county,  per  annum,  $50. 

All  shows  and  exhibitions — in  cities  or  towns  of  5,000  inhabitants,  per 
exhibition,  $50;  in  cities  or  towns  of  4,000  to  5,000,  per  exhibition, 
$40;  in  cities  or  towns  of  less  than  4,000,  per  exhibition,  $30.  Cir- 
cuses— cities  of  20,000  or  more,  each  day,  $500;  in  cities  of  5,000  to 
20,000,  each  day,  $200;  in  cities  of  4,000  to  5,000,  each  day,  $150;  in 
cities  of  less  than  4,000,  each  day,  $100.  Dog  or  horse  shows,  when 
admission  fee  is  25  cents,  per  day,  $30;  when  admission  fee  is  less  than 
25  cents,  per  day,  $10. 


Liquor  licenses  (see  first  item  of  this  list) ;  dealers  in  pistols  and  arms, 
per  annum,  $25;  dealers  in  futures,  for  each  place  of  business,  per 
annum,  $1,000;  peddlers  of  stoves,  in  each  county,  per  annum,  $200; 
peddlers  of  patent  chums  and  patent  fences,  in  each  county,  per  annum, 
$25;  agents  of  packing  houses,  in  each  county,  per  annum,  $200;  dealers 
in  billiard  tables,  in  each  county,  per  annum,  $100;  peddlers  of  clocks 
and  smoothing  irons,  in  each  county,  per  annum,  $100;  itinerant  special- 
ists, in  each  county,  per  annum,  $10:  brewing  companies,  per  annum, 
$300;  sellers  of  beer  not  holding  liquor  license,  in  each  county,  per 
annum,  $200:  pawnbrokers,  each  place  of  business,  per  annum,  $50; 
mercantile,  collecting,  and  commercial  agencies,  in  each  county,  per 
annum,  $50;  dealers  and  peddlers  in  agricultural  implements  or  pat- 
ented articles,  not  having  a  fixed  place  of  business,  in  each  county,  per 
annum,  $25:  detective  agencies,  each,  per  annum,  $50;  cigarette  dealers, 
per  nnnum,  $10.  Playgrounds,  ball  parks,  etc. — in  cities  of  over  10,000, 
per  annum,  $50;  in  places  of  less  than  10,000,  per  annum,  $25;  railroad 
ticket  brokers,  scalpers,  per  annum,  $50.  Abstract  companies — in 
towns  of  20,000,  per  annum,  $25;  in  towns  of  10,000  to  20,000,  per 
annum,  $10;  in  towns  of  less  than  10,000,  per  annum,  $5.  Gypsies, 
each  company,  in  each  county,  per  annum,  $25;  bicycle  dealers,  each 
place  of  business,  per  annum,  $10. 

B.    FEES. 

By  secretaries  to  the  governor,  for  land  grants,  according  to  area,  $1 
to  $4. 

By  the  secretary  of  the  state:  For  ordinary  papers  and  seal,  $1  to  $2; 
for  charter  to  railroad  company,  $100;  for  charter  to  insurance  company, 
$100:  for  charter  to  banking  company,  $50;  for  charter  to  express  com- 
pany, $100:  for  charter  to  canal  company,  $100;  for  charter  to  telegraph 
company,  $100;  for  charter  to  navigation  company,  $100;  for  renewals, 
the  same  rates;  for  amending  charters,  $25;  for  street  railroad  charters, 
$50;  for  renewal,  $25. 

By  the  treasurer  for  documents,  small  fees. 

By  the  surveyor-general,  50  cents  to  $10. 

By  the  inspector  of  fertilizers,  10  cents  per  ton. 

By  the  inspector  of  oils:  Lots  of  400  gallons  and  upward,  J  cent  per 
gallon :  lots  of  200  to  400  gallons,  1  cent  per  gallon ;  lots  of  less  than  200 
gallons,  li  cents  per  gallon. 

D.    INCOME    FROM    PUBLIC    PROPERTY. 

Georgia  owns  the  Western  and  Atlantic  Railroad,  which  was  rented 
in  1902  for  $420,012.  It  owns  bank  stock  and  stock  of  the  Main  Trunk 
Railroad,  paying  dividends  in  1902  of  $2,596  and  $3,745.  Convicts  are 
let  out  for  hire;  proceeds,  in  1902,  $202,329.25.  State  funds  are  depos- 
ited in  banks  at  interest,  $15,769.91. 

County  Revenues. 

A.    TAXES. 

I.    The  general  property  tax. 

1.  Base — 

The  property  included  and  the  method  of  assess- 
ment and  of  equalization  are  the  same  for  county  as  for 
state  taxation. 

2.  Rate— 

The  rate  for  county  purposes  for  specified  objects  is 
levied  by  the  ordinary,  who  may  levy  an  additional 
tax,  if  two-thirds  of  the  grand  jury  recommend  it,  not 
to  exceed  50  per  cent  of  the  amount  of  the  state  tax. 

3.  Collection — 

County  taxes  are  collected  in  the  same  general  man- 
ner as  state  taxes. 


684 


WEALTH,  DEBT,  AND  TAXATION. 


II.  Poll  tax. 

The  constitution  forbids  the  collection  of  poll  taxes 
'other  than  for  educational  purposes  and  to  a  greater 
amount  than  one  dollar  annually.  But  the  state 
courts  have  decided  that  this  constitutional  provision 
does  not  prevent  the  enforcement  of  laws  requiring  all 
able-bodied  males  to  work  on  the  roads  of  the  counties 
and  streets  of  the  cities  not  to  exceed  fifteen  days  per 
year.  The  "  road  work "  in  the  counties  averages 
about  three  dollars  per  capita  per  annum. 

Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 
These  taxes  are  not  used  by  the  county. 

V.  Business  taxes  and  licenses. 

County  licenses  are:  To  sell  liquors,  $25  per  annum;  to  peddle,  $50 
per  annum;  to  exhibit  shows  with  horses,  $10  per  annum;  to  exhibit 
animals,  beasts,  and  the  like,  $10  per  annum;  to  exhibit  any  pictures  or 
figures,  $5  per  annum;  to  exhibit  any  other  show,  $5  to  $25  per  annum; 
theatrical  or  musical  exhibitions,  not  over  $5  per  annum. 

Municipal  Revenues. 

Note. — Provisions  concerning  taxation  in  the  cities,  etc.,  are  made 
in  the  numerous  "  local  acts,"  each  applicable  to  a  single  community. 
The  provisions  here  abstracted  are  those  only  which  aTe  found  in  gen- 
eral laws. 

A.    TAXES. 

I.    The  general  'property  tax. 
1.  Base — 

a.  The  property  included  and  exempt. — The  property 
included  is  the  same  for  municipal  as  for  state  and 
county  taxation. 

b.  Assessment. — The  assessment  is  made  by  ap- 
pointed assessors  and  not  by  the  tax  receivers.  It  is 
specially  provided  that  cities  may  tax  railroad  prop- 
erty as  other  property  and  not  as  the  state  and 
counties  do. 

c.  Equalization. — Persons  aggrieved  may  appear 
before  the  assessors  and  produce  testimony  as  to  the 
value  of  property.  The  decision  of  the  assessors  is 
final. 


2.  Rate — 

No  municipal  corporation  shall  levy  or  collect  for 
the  ordinary  current  expenses,  except  as  hereinafter 
provided,  any  ad  valorem  tax  upon  the  property  within 
said  corporation,  exceeding  one-half  of  1  per  cent  upon 
the  value  of  said  property.  The  "hereinafter  pro- 
vided "  refers  to  special  assessments  for  street  improve- 
ments and  the  like. 

3.  Collection — 

City  taxes  are  collected  generally  by  the  treasurer. 
There  may  be  a  city  tax  collector,  who  is  ordinarily  not 
the  same  as  the  county  tax  collector. 

II.  Poll  tax. 

Cities  may  assess  a  poll  tax  for  street  work  only,  and 
then  only  after  an  opportunity  to  work  on  the  streets 
has  been  given.  When  levied  in  labor,  this  tax  is  gen- 
erally commutable.  (See  also  Poll  tax,  under  County 
revenues.) 
Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

Not  used  by  the  cities,  except  that  cities  may  collect 
a  tax  on  insurance  companies  at  a  certain  percentage 
on  gross  premium  receipts. 
V.  Business  taxes  and  licenses. 

Municipal  authorities  may  license  pawnbrokers;  sellers  of  domestic 
wine,  not  producers;  and  sellers  of  liquors. 

School  Revenues. 

The  state  school  fund,  composed  of  the  poll  tax  and 
specific  taxes  levied  for  that  purpose,  including  certain 
of  the  licenses,  is  apportioned  by  the  state  school  com- 
missioner, the  comptroller-general,  and  the  treasurer, 
in  proportion  to  school  population. 

The  counties  and  certain  cities  constitute  the  school 
districts. 

Some  of  the  counties  have  local  school  laws  by  which 
funds  are  raised.  Counties  generally  and  municipal 
corporations  may  by  a  vote  of  two-thirds  of  the  legal 
voters  levy  a  tax  for  school  purposes.  The  county 
school  tax  is  not  to  exceed  one-fourth  of  1  per  cent 
ad  valorem. 


HAWAII.1 


Hawaii  draws  her  revenues  from  ad  valorem  and 
specific  taxes  on  property  and  from  other  sources. 
There  is  also  a  poll  tax,  devoted  largely  to  school  and 
road  purposes ;  a  collateral  inheritance  tax ;  and  special 
corporation  taxes  on  insurance  companies.  There  is 
a  system  of  license  taxes,  but  especially  notable  is  the 
system  of  stamp  duties  on  deeds,  contracts,  and  in- 
struments of  various  kinds.  There  is  an  income  tax 
on  persons  and  corporations. 

1  This  compilation  is  derived  mainly  from  the  following  sources: 
Civil  Laws  of  the  Hawaiian  Islands,  1897.     Honolulu,  1897. 
Laws  of  the  Republic  of  Hawaii,  1898. 
Laws  of  the  Territory  of  Hawaii,  1901. 

Revised  Laws  of  Hawaii,  1905,  official  edition.  Honolulu  Gazette 
Company,  Honolulu,  H.  I.,  1905. 


For  taxation  purposes  the  islands  comprising  the 
territory  of  Hawaii  are  divided  into  four  divisions. 
These  divisions  are  subdivided  into  districts,  five  to 
nine  in  number,  for  taxation,  judicial,  and  educational 
purposes.  Taxation  seems  to  be  administered  by 
districts  and  divisions,  and  no  provision  is  made  in  the 
statutes  for  counties  and  municipalities. 

In  1905  the  legislature  divided  the  territory  into  five 
counties  and  provided  that  50  per  cent  of  the  total 
amount  of  poll  taxes  and  school  taxes  on  property  and 
incomes  collected  in  each  county  should  be  paid  by  the 
treasurer  of  the  territory  to  the  treasurer  of  the  county, 
there  being  no  provision  for  the  collection  of  taxes  by 
the  counties  themselves. 


TAXATION  AND  REVENUE  SYSTEMS— HAWAII. 


685 


CONSTITUTIONAL    PROVISIONS. 

The  organic  act  providing  a  government  for  the  territory  of  Hawaii 
(1900)  makes  no  specific  provision  in  regard  to  taxation,  but  confers 
legislative  power  as  to  all  rightful  subjects  of  legislation  not  inconsistent 
with  the  Constitution  and  laws  of  the  United  States. 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
arc: 

(1)  The  assessor  and  collector  of  taxes  for  each  taxation  division  of 
the  territory  (four),  called  "assessor,"  appointed  by  the  treasurer  with 
the  approval  of  the  governor.  The  assessor  may  appoint  as  many 
deputies  as  are  required  for  assessing  and  collecting  the  taxes. 

(2)  A  board  of  equalization,  composed  of  the  several  assessors  with 
the  treasurer  as  chairman. 

(3)  An  appeal  court  or  tax  court,  composed  of  three  persons  appointed 
by  the  governor  for  each  judicial  circuit,  to  hold  office  for  one  year. 

Territorial  Revenues. 

a.   TAXES. 

I.    The.  general  property  tax. 
1.  Base — 

a.  The  property  included  and  exempt. — All  real  and 
personal  property  within  the  territory  is  subject  to 
taxation,  except  as  specially  exempted. 

(1)  "Real  property"  includes  all  lands  ami  lots,  with  the  buildings, 
structures,  fences,  wharves,  and  improvements  affixed  to  the  same. 

(2)  "Personal  property"  includes  all  goods  and  chattels,  machinery, 
Hawaiian  ships  or  vessels,  leasehold  and  chattel  interests  in  land, 
franchises,  patents,  growing  crops,  and  all  animals  not  specifically  taxed. 

(3)  Exemptions,  in  addition  to  public  property,  are:  Property  of  incor- 
porated or  private  schools;  of  the  Queen's  Hospital,  of  the  Kapiolani 
Mat ei  nil  y  1  Ionic,  of  religious  societies  with  their  church  sites  and  bury- 
ing grounds,  of  public  charities:  and  all  property  up  to  $300  of  each  tax- 
payer, except  that  of  corporations,  companies,  or  estates  of  deceased 
persons  or  nonresidents;  forest  land,  fenced  to  protect  springs  or  streams 
of  water,  of  which  no  other  use  is  made,  and  property  of  all  lepers  on 
the  island  of  Molokai.  (1903.  Property  in  certain  industries  and  Kona- 
Kau  Railway.) 

Certain  railroad  property  is  exempt  by  legislative  contract,  as  are 
Government  bonds,  and  for  a  period  of  ten  years,  from  various  dates, 
pineapple  canneries  and  manufacturers  of  jams,  jellies,  etc.,  coffee,  ramie, 
and  all  fiber  crops.  \ 

(Amended  in  1905.) 

b.  Assessment. — The  assessment  is  made  by  the 
district  assessors  as  of  the  1st  day  of  January.  Tax- 
payers are  required  to  fill  out,  under  oath,  assessment 
schedules  with  description  of  the  land  and  value  of 
improvements  and  of  personal  property  and  the  value 
thereof.  Growing  rice  is  assessed  as  of  the  1st  day 
of  May. 

The  penalty  for  failure  to  make  return  is  denial  of 
the  right  of  appeal  from  the  assessors'  valuation.  A 
false  return  is  a  misdemeanor  and  subject  to  a  fine 
of  $500. 

Each  item  of  real  and  personal  property  is  to  be  j 
assessed  separately  at  its  full  cash  value.  But  where  [ 
real  and  personal  property,  or  several  kinds,  classes,   | 


or  parcels  of  real  or  personal  property  are  combined 
and  made  the  basis  of  an  enterprise  for  profit,  the  com- 
bined property  is  to  be  assessed  as  a  whole  upon  its 
fair  and  reasonable  aggregate  value.  Net  profit, 
gross  receipts  and  running  expenses,  and  market  value 
of  stock  are  to  be  considered.  The  value  of  shares  held 
in  other  Hawaiian  corporations  and  all  property  on 
which  specific  taxes  are  levied  are  to  be  excluded.  All 
these  data  are  to  be  set  forth  in  the  statement  or  re- 
turn of  the  taxpayer. 

Mortgages. — The  mortgagor  is  liable  to  taxation  only  on  the  differ- 
ence between  the  value  of  the  property  mortgaged  and  the  amount 
owing,  provided  he  reports  the  name  of  the  mortgagee  and  the  amount 
of  the  mortgage.  He  may  also  pay  the  tax  on  the  money  owing,  which 
is  a  credit  on  the  debt. 

Corporations. — Corporations  are  assessed  on  their  property,  but  the 
individual  stockholders  are  not  assessed  on  their  shares. 

I,  b.  Specific  property  taxes. 

Cart  and  dray  tax.  -All  carts,  drays,  wagons,  and  other  vehicles 
used  for  freight  or  merchandise  are  subject  to  an  annual  tax  of  $2  each. 

Carriage  tax.  — All  carriages,  wagons,  omnibuses,  hearses,  and  auto- 
mobiles used  for  persons  are  subject  to  an  annual  tax  of  $5  each. 
(Hicycle.tax,  $1  each,  1903,  c.  54.) 

These  taxes  are  to  be  expended  on  the  roads  in  the  district  where 
collected. 

These  rates  were  changed  in  1905. 

All  dogs  are  subject  to  an  annual  tax  of  $1,  to  be  paid  by  the  owner. 

The  above  specific  property  taxes  are  treated  locally 
as  licenses. 

c.  Equalization. — The  board  of  equalization  equal- 
izes the  assessment  of  property  throughout  the  terri- 
tory. 

There  is  a  special  court  for  tax  appeals,  to  which  any 
person  may  appeal  who  feels  himself  aggrieved  by 
any  change  made  by  the  assessor  in  valuations  re- 
turned or  in  claims  of  exemption. 

2.  Rate— 

The  rate  of  territorial  taxation  prescribed  by  statute 
is  1  per  cent. 

3.  Collection — 

Each  assessor  collects  all  the  taxes  in  his  division 
according  to  the  tax  lists.  All  personal  taxes  and 
dog  taxes  are  due  and  payable  on  and  after  January 
1  in  the  year  in  which  they  are  assessed ;  and  all  other 
taxes,  on  and  after  September  1  in  each  year.  If  any 
personal  taxes  or  dog  taxes  remain  unpaid  after  March 
31,  10  per  cent  is  added  for  delinquency.  Property 
taxes  are  delinquent  after  November  15,  and  10  per 
cent  is  then  added.  Every  tax  due  upon  property  is 
a  lien  on  the  property  assessed  and  attaches  as  of  Sep- 
tember 1  and  continues  two  years.  These  dates  were 
changed  in  1905. 

Delinquent  lists  are  published  after  December  1  of 
each  year.  Payment  may  be  enforced  by  distress  of 
goods  and  chattels  or  by  suit  in  which  execution  may 
be  levied  on  real  or  personal  property.  Garnishment 
may  be  employed  for  personal  taxes. 


686 


WEALTH,  DEBT,  AND  TAXATION. 


II.  Poll  tax. 

An  annual  tax  of  $1  is  levied  on  every  male  inhab- 
itant between  21  and  60  years  of  age,  except  as  spe- 
cially exempt.  In  addition  thereto  there  is  a  school 
tax  of  $2  per  poll  and  a  road  tax  of  $2  per  poll. 

These  taxes  may  be  worked  out  on  the  roads  of  the 
district  where  the  taxpayer  resides,  at  the  rate  of  50 
cents  per  day. 

The  exemptions  from  poll  taxes  are:  Clergymen  of 
Christian  denominations,  members  of  Hilo  fire  depart- 
ment, all  officers  and  soldiers  of  the  National  Guard; 
also,  at  the  discretion  of  assessors,  indigent  and  infirm 
persons,  and  all  lepers  in  the  island  of  Molokai. 

III.  Inheritance  tax. 

Estates  of  over  $500  passing  by  will,  descent,  or 
transfer  made  in  contemplation  of  death,  where  the 
property  is  that  of  a  resident,  or  is  situated  in  the 
territory,  is  subject  to  a  tax  of  $5  on  every  $100  of 
clear  market  value.  But  property  passing  to  the 
decedent's  father,  mother,  husband,  wife,  child, 
adopted  child,  grandchild,  or  to  schools  exempted  from 
taxation,  is  not  subject  to  the  tax,  and  estates  valued 
at  less  than  $500  are  exempt. 

The  tax  is  to  be  paid  to  the  treasurer  for  the  use  of 
the  territory. 

IV.  Corporation  taxes. 

Foreign  fire  and  marine  insurance  companies  are  required  to  pay 
$1  on  every  $100  received  for  gross  premiums  during  the  year  from 
business  transacted  in  the  territory. 

(1903.  All  insurance  companies  pay  2  per  cent  on  net  profits  or 
income.) 

V.  Business  taxes  and  licenses. 

Licenses  are  issued  by  the  treasurer  of  the  territory 
for  one  year. 

Alcohol,  sale  of,  $50:  awa,  license  sold  at  auction  in  each  taxation 
district,  upset  price,  $100  to  $1,000;  auctioneer,  Honolulu,  $600;  other 
districts,  $15;  banking  license,  $750;  billiards  and  bowling  alleys,  per 
table  or  alley,  $25;  boatmen  for  hire,  $1 ;  butcher,  beef,  slaughter  and 
sale,  in  Honolulu,  $100;  other  districts,  $20;  sale  of  beef,  $10;  butcher, 
pork,  slaughter  and  sale,  Honolulu,  $40;  other  districts,  $20;  sale, 
$10.  Firearms,  to  hunt  in  Oahu,  $5;  steam  laundries,  Honolulu,  $50; 
livery  stables,  Honolulu,  $50;  others,  $25;  lodging  houses,  $2;  hotels, 
boarding  houses,  «nd  restaurants,  $50;  milk,  $2.50;  notaries  public, 
in  Honolulu,  $10,  other  districts,  $5;  pawnbroker,  $150;  peddlers  of 
cakes,  $25;  poisonous  drugs,  $50;  public  shows,  per  performance,  $5 
salmon,  sale  of,  $10;  stock,  share  business,  $100;  tobacco,  cigars,  etc. 
sale  of,  $10;  vehicles  and  drivers — freight  or  baggage,  $2.50;  drivers,  $1 
passengers,  per  seat,  individual,  $1;  street  cars,  $10;  liquors — distiller 
$2.50;  brewer,  $250;  wholesale  dealer,  $.500;  retail  dealer,  $1,000 
retailer  of  wines,  beers,  and  ales,  $200. 

These  rates  were  changed  in  190.5. 

VI.  Income  tax. 

Every  person  is  required  to  pay  2  per  cent  upon 
gains,  profits,  and  income  over  $1,000  derived  from 
property  owned,  and  business,  trade,  and  professions 
carried  on,  in  the  territory.  The  abatement  of  $1,000 
is  allowed  from  the  income  of  the  family  as  a  whole. 

Corporations  are  required  to  pay  a  tax  of  2  per  cent 


on  the  net  profit  or  income  above  actual  operating 
expenses  from  all  property  owned,  and  every  business, 
trade,  employment,  or  vocation  carried  on,  in  the  ter- 
ritory. Exemptions  are  corporations  for  charitable, 
religious,  educational,  or  scientific  purposes,  insurance 
companies  taxed  on  premiums,  and  fraternal  benefit 
societies. 

All  persons  having  an  income  over  $600  and  all 
corporations  are  required  to  render  a  list  of  the 
amount  of  their  income,  which  includes  all  interest, 
except  on  bonds  of  the  territory  and  its  municipali- 
ties, profits  from  sales,  dividends,  and  the  value  of  all 
personal  property  acquired  by  gift  or  inheritance,  and 
all  other  income.  Necessary  expenses  in  carrying  on 
the  business,  or  in  managing  property,  all  interest  on 
existing  debts,  all  taxes  and  license  fees,  and  all 
losses  actually  suffered  not  covered  by  insurance  are 
to  be  deducted;  but  permanent  improvements  and 
personal  and  family  expenses  are  not. 

The  income  tax  is  due  and  payable  by  the  15th  of 
November  of  each  year,  after  which  10  per  cent  is 
added  and  interest  at  9  per  cent. 

Appeals  from  assessment  lie  to  the  tax  appeal 
court. 

The  collection  is  the  same  as  for  other  taxes. 
VII.  Stamp  duties  on  certain  deeds,   documents,   and 
instruments. 

Agreement,  $1 ;  annuity,  for  each  $500  of  consideration,  $1 ;  articles  of 
copartnership,  $5;  articles  of  adoption,  $1;  assignment  of  property, 
real  or  personal,  $1';  bill  of  sale  of  ships  (if  absolute,  same  as  convey- 
ance; if  for  security,  same  as  mortgage);  bond  *  *  *  same  as 
mortgage,  if  security;  other  bonds,  *  *  *  $1;  charter  party,  $10; 
charters  or  articles  of  association,  public  or  private,  $25;  contracts, 
masters  and  servants  (for  each  year,  to  be  paid  by  master) ,  $1 .  Convey- 
ance, real  or  personal — consideration  up  to  $500,  $1 :  $500  to  $1,000,  $2; 
$1,000  to  $10,000,  per  $1,000,  $3;  $10,000  to  $50,000,  per  $1,000,  $4; 
over  $50,000,  per$l,000,  $5.  Duplicates,  $1 ;  exchange  (if  no  bonus),  $1 ; 
lease,  where  premium  paid,  ad  valorem  duty  as  on  conveyance; 
where  rent  $500,  $1 ;  where  over  $500,  per  $.500,  $1 ;  letters  of  license, 
creditor  or  debtor,  $10;  letters,  testamentary  or  guardianship,  $1. 
Licenses— Fee  $20,  50  cents ;  $20  to  $50,  $1:  $50  to  $100,  $2;  over  $100, 
per  $50,  $1.  Mortgages— $1,000,  $1 ;  $1,000  to  $10,000,  per  $1,000,  $2; 
over  $10,000,  per  $1,000,  $3.  Partition  deeds— Bonus  over  $1,000, 
ad  valorem  duty  as  on  sale;  patents  for  land,  $1 :  policy,  marine  insur- 
ance, per  $1,000,  according  to  voyage,  25  cents  to  $1 ;  power  of  attorney, 
$1;  process  in  courts  of  record,  $2;  release  of  mortgage,  $1;  marriage 
settlement,  $5;   renunciation  or  disclaimer  of  any  right  to  property,  $2. 

B.    FEES. 

Foreign  corporations — Annual  license  (amended  1903,  $50  at  least), 
$50.  Insurance,  1903 — Filing  articles,  $25;  annual  statements,  $10; 
certificate  of  authority,  $10;  agents'  license,  $2. 

D.    INCOME    FROM    PUBLIC    PROPERTY. 

Franchises  for  electric  light  or  electric  power  are  to 
be  sold  at  public  auction  to  the  highest  bidder,  the 
upset  price  being  2\  per  cent  of  the  gross  receipts  after 
the  first  two  years. 


TAXATION  AND  REVENUE  SYSTEMS— IDAHO. 


687 


IDAHO. 


Idaho  depends  for  revenues  almost  entirely  upon 
the  general  property  tax.  There  are  no  taxes  on 
inheritance  or  special  taxes  on  corporations. 

CONSTITUTIONAL    PROVISIONS. 

ARTICLE    III. 

Sec.  19.  The  legislature  shall  not  pass  local  or  special  laws  in  any  of 
the  following  enumerated  .cases,  that  is  to  say:  *  ■  *  *  For  the 
Msewment  and  collection  of  taxes.  *  *  *  Exempting  property 
from  taxation.     *     *     *     Remitting  fines,  penalties,  and  forfeitures. 

ARTICLE   VII. 

Sec.  2.  The  legislature  shall  provide  such  revenue  as  may  be  needful, 
l>v  levying  a  tax  by  valuation,  so  that  every  person  or  corporation  shall 
pay  a  tax  in  proportion  to  the  value  of  his,  her,  or  its  property,  except  H 
in  this  article  hereinafter  otherwise  provided.'  The  legislature  may  also 
impose  a  license  tax  (both  upon  natural  persons  and  upon  corporations, 
other  than  municipal,  doing  business  in  this  state);  also  a  per  capita 
tax:  Provided,  That  the  legislature  may  exempt  a  limited  amount  of 
improvements  upon  land  from  taxation. 

Sec.  3.  The  word  "property''  as  herein  used  shall  be  defined  and 
classified  by  law. 

Sec.  A.  The  property  of  the  United  States,  the  state,  counties,  towns, 
cities,  and  other  municipal  corporations  and  public  libraries  shall  be 
exempt  from  taxation. 

Si'.i I.  5.  All  taxes  shall  be  uniform  upon  the  same  class  of  subjects 
within  the  territorial  limits  of  the  authority  levying  the  tax,  and  shall  be 
levied  and  collected  under  general  laws,  which  shall  prescribe  such 
regulations  as  shall  secure  a  just  valuation  for  taxation  of  all  property, 
real  and  personal :  Provided,  That  the  legislature  may  allow  such  exemp- 
tions from  taxation  from  time,  to  time  as  shall  seem  necessary  and  just, 
and  all  existing  exemptions  provided  by  the  laws  of  the  territory  shall 
continue  until  changed  by  the  legislature  of  the  state:  Provided  further, 
That  duplicate  taxation  of  property  for  the  same  purpose  during  the 
same  year  is  hereby  prohibited. 

Sec.  6.  The  legislature  shall  not  impose  taxes  for  the  purpose  of  any 
county,  city,  town,  or  other  municipal  corporation,  but  may  by  law 
invest  in  the  corporate  authorities  thereof,  respectively,  the  power  to 
assess  and  collect  taxes  for  all  purposes  of  such  corporation. 

Sec.  7.  All  taxes  levied  for  state  purposes  shall  be  paid  into  the  state 
treasury,  and  no  county,  city,  town,  or  other  municipal  corporation,  the 
inhabitants  thereof,  nor  the  property  therein,  shall  be  released  or  dis- 
charged from  their  or  its  proportionate  share  of  taxes  to  be  levied  for 
state  purposes. 

Sec.  8.  The  power  to  tax  corporations  or  corporate  property,  both 
real  and  personal,  shall  never  be  relinquished  or  suspended,  and  all  cor- 
porations in  this  state,  or  doing  business  therein,  shall  be  subject  to 
taxation  for  state,  county,  school,  municipal,  and  other  purposes,  on 
real  and  personal  property  owned  or  used  by  them,  and  not  by  this 
constitution  exempted  from  taxation  within  the  territorial  limits  of  the 
authority  levying  the  tax. 

Sec:.  9.  The  rate  of  taxation  of  real  and  personal  property  for  state 
purposes  shall  never  exceed  ten  (10)  mills  on  each  dollar  of  assessed 
valuation,  and  if  the  taxable  property  in  the  state  shall  amount  to  fifty 
million  (50,000,000)  dollars,  the  rate  shall  not  exceed  five  (5)  mills  on 
each  dollar  of  valuation;  and  whenever  the  taxable  property  in  the 
state  shall  amount  to  one  hundred  million  (100,000,000)  dollars,  the 
rate  shall  not  exceed  three  (3)  mills  on  each  dollar  of  valuation;  and 
whenever  the  taxable  property  of  the  state  shall  amount  to  three  hun- 
dred million   (300,000,000)   dollars,  the  rate  shall  never,   thereafter, 

'This  compilation  is  derived  mainly  from  the  Code  of  Idaho,  1901; 
official  compilation.  Published  by  the  Capital  News  Printing  Co., 
Boise,  Idaho. 


exceed  one  and  one-half  (1$)  mills  on  each  dollar  of  valuation,  unless  a 
proposition  to  increase  such  rate,  specifying  the  rate  proposed  and  the 
time  during  which  the  same  shall  be  levied,  shall  have  been  submitted  to 
the  people  at  a  general  election,  and  shall  have  received  a  majority  of  all 
the  votes  cast  for  and  against  it  at  such  election. 

Sec.  11.  (Provides  that  each  year's  expenditures,  except  for  insur- 
rection or  war,  must  be  kept  within  the  above  rate.) 

Sec.  12.  There  shall  be  a  state  board  of  equalization,  consisting  of  the 
governor,  secretary  of  state,  attorney-general,  state  auditor,  and  state 
treasurer,  whose  duties  shall  be  prescribed  by  law.  The  board  of  county 
commissioners  for  the  several  counties  of  the  state,  shall  constitute 
boards  of  equalization  for  their  respective  counties,  whose  duties  it  shall 
be  to  equalize  the  valuation  of  the  taxable  property  in  the  county, 
under  such  rules  and  regulations  as  shall  be  prescribed  by  law. 

Sec.  15.  The  legislature  shall  provide  by  law  such  a  system  of  county 
finance  as  shall  cause  the  business  of  the  several  counties  to  lie  conducted 
on  a  cash  basis.  It  shall  also  provide  that  whenever  any  county  shall 
have  any  warrants  outstanding  and  unpaid,  for  the  payment  of  which 
there  are  no  funds  in  the  county  treasury,  the  county  commissioners,  in 
addition  to  other  taxes  provided  by  law,  shall  levy  a  special  tax,  not  to 
exceed  ten  (10)  mills  on  the  dollar  of  taxable  property,  as  shown  by  the 
last  preceding  assessment,  for  the  creation  of  a  special  fund  for  the 
redemption  of  said  warrants;  and  after  the  levy  of  such  special  tax  all 
warrants  issued  before  si  ch  levy  shall  be  paid  exclusively  out  of  said 
fund.  All  moneys  in  t!  e  county  treasury  at  the  end  of  each  fiscal  year 
not  needed  for  current  ex-penses  shall  be  transferred  to  said  redemption 
fund. 


ART.  CLE    XVIII. 


Sec  7  (the  fifth  amendment).  (County  officers  are  to  be  paid  by 
salaries  and  are  to  turn  all  fees  into  the  county  treasury.) 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  The  county  assessors,  who  are  ex  officio  tax  collectors,  elected 
biennially  in  each  county. 

(2)  The  county  commissioners,  who  form  the  county  board  of 
equalization. 

(3)  The  state  board  of  equalization,  composed  of  the  governor, 
secretary  of  state,  attorney-general,  state  auditor,  and  state  treasurer. 

State  Revenues. 

a.   TAXES. 

I.   The  general  property  tax. 
1.  Base — 
a.    The  property  included  and  exempt. — All  property 
in  the  state,  not  exempt  by  law,  including  interests  in 
state  lands,  is  subject  to  this  tax. 

(1)  "Real  estate"  includes  the  possession  of,  claim  to,  ownership 
of,  or  right  to  the  possession  of  land  (but  possessoiy  claims  are  exempt), 
mines,  minerals,  and  quarries. 

"Improvements"  includes  buildings,  structures,  and  the  like,  fruit, 
nut  bearing,  or  ornamental  trees  or  vines. 

(2)  "Personal  property"  includes  everything  subject  to  ownership, 
not  included  above.  Shares  of  stock  in  Idaho  corporations  are  not 
ordinarily  taxed,  but  property  of  the  corporation  is  taxed. 

(3)  The  exemptions  are,  in  addition  to  public  property,  all  property 
used  for  school  puiposes;  churches,  chapels,  and  other  buildings 
belonging  to  any  church  organization;  hospitals;  public  cemeteries; 
buildings  owned  and  used  by  the  Masons  or  Odd  Fellows,  or  other 
benevolent  or  charitable  societies;  property  of  widows  and  orphans  to 


688 


WEALTH,  DEBT,  AND  TAXATION. 


$1,000,  when  total  assessment  does  not  exceed  $5,000;  growing  crops; 
public  and  private  libraries ;  tools,  household  goods,  farming  implements 
and  machinery  to  $400;  possessory  right  to  public  lands;  mortgages; 
mining  claims  not  patented;  irrigating  canals  and  ditches,  when  used 
by  owner  on  his  land. 

Debts  may  be  deducted  from  credits  only. 

b.  Assessment. — Property  in  general  is  assessed  by 
the  county  assessors  at  its  full  cash  value,  land  and 
improvements  being  considered  separately.  The  as- 
sessment refers  to  the  second  Monday  in  January,  and 
the  rolls  are  to  be  completed  by  the  1st  day  of  July. 
The  assessment  is  made  on  the  basis  of  a  list  of  prop- 
erty to  be  furnished  and  sworn  to  by  the  taxpayer. 
Values  given  by  taxpayers,  however,  are  not  binding 
on  the  assessor.  Refusal  to  make  a  statement 
deprives  the  taxpayer  of  all  rights  before  the  board 
of  equalization. 

In  assessing  solvent  credits,  debts  due  bona  fide  residents  of  the  state 
may  be  deducted. 

Water  ditches  and  toll  roads  are  assessed  as  real  estate  at  a  rate  per 
mile. 

Telegraph  and  telephone  lines,  " railroad  track"  and  "rolling  stock," 
and  the  franchises  of  all  such  companies  are  assessed  by  the  state, 
board  of  equalization.  This  assessment  covers  all  property  necessary 
to  the  operation  of  the  road,  etc.  Other  property  ia  assessed  by  the 
local  assessors,  and  the  assessment  so  made  is  apportioned  among 
the  counties  on  the  basis  of  mileage. 

Stock  in  corporations,  which  are  assessed  on  their  property,  is  not 
taxable  to  holder. 

Shares  of  stock  in  national  banks  are  assessed  to  the  owners  where 
the  bank  is  located.     Taxes  thereon  may  be  paid  by  the  bank. 

c.  Equalization. — The  board  of  county  commissioners 
equalizes  the  assessment  between  individuals.  It  also 
hears  and  adjudicates  complaints. 

The  state  board  of  equalization  equalizes  the  valua- 
tion of  property  between  the  counties.  It  may  in- 
crease or  decrease  the  valuation  by  classes  of  property 
in  any  county.  But  it  may  not  increase  or  decrease 
by  more  than  15  per  cent  the  total  valuations  of  the 
state  as  returned  by  the  assessor. 

2.  Rate- 
There  is  no  state  rate,  strictly  speaking,  for  the  law 

requires  that  the  amount  to  be  raised  by  ad  valorem 
taxes  for  state  purposes  shall  be  apportioned  to  the 
counties  on  the  basis  of  the  assessed  valuation,  and  the 
share  of  each  county  levied  by  the  county  authorities 
with  and  as  if  a  part  of  the  county  taxes.  The  appor- 
tionment is  made  by  the  state  board  of  equalization. 

3.  Collection — 

Taxes  are  collected  by  the  assessor,  who  is  ex  officio 
tax  collector.  They  become  a  lien  on  the  property  of 
the  taxpayer  on  the  second  Monday  in  January,  are 
due  ten  days  after  the  second  Monday  in  September, 
and  become  delinquent  the  first  Monday  in  January, 
when  10  per  cent  penalty  is  added.  The  delinquent 
list  is  published  on  the  fourth  Monday  in  May,  and 
taxes  thereon  may  be  collected  by  seizure  and  sale. 


II.  Poll  tax. 

The  poll  tax  is  a  county  tax. 

III.  Inheritance  lax. 

There  is  no  inheritance  tax. 

IV.  Corporation  taxes. 

Corporations,  except  insurance  companies,  are  taxed 
solely  under  the  general  property  tax. 

All  insurance  companies,  except  mutual,  pay  a  tax  of  2  per  cent  on 
gross  premiums  received  in  Idaho  less  losses  paid  in  the  state. 

V.  Business  taxes  and  licenses. 

The  state  receives  10  per  cent  of  the  following 
licenses  which  are  issued  by  the  counties: 

Auctioneers,  $5  per  month  or  $20  per  annum;  toll  bridges  and  ferries, 
rate  fixed  by  commissioners;  bankers — business  aggregating  $250,000 
per  quarter,  $100  per  quarter;  $200,000  to  $2,50,000  per  quarter,  $80 
per  quarter;  $100,000  to  $200,000  per  quarter,  $50  per  quarter;  $50,000 
to  $100,000  per  quarter,  $40  per  quarter;  less  than  $50,000  per  quarter, 
$30  per  quarter.  Billiards,  etc.,  $15  per  quarter;  bowling  alley.  $5  per 
quarter;  exhibition  of  caravan,  menagerie,  circus,  etc.,  each  exhibition, 
$10;  other  shows,  per  day,  $5;  pawnbrokers,  $50  per  quarter;  ped- 
dlers— with  a  pack  and  on  foot,  $100  annually;  with  a  wagon,  one 
horse,  $150  annually;  with  a  wagon,  two  horses,  $250  annually;  witli 
other  conveyances,  $300  annually:  peddlers  or  solicitors  for  mercan- 
tile establishments,  $75  to  $125  annually.  Liquor  dealers — in  towns 
or  cities,  where  total  vote  exceeded  150,  $500  annually:  in  other  towns 
or  cities,  $300  annually;  hotels  and  restaurants,  3  miles  outside  a 
city,  $100  annually.  The  state  receives  from  the  insurance  commis- 
sioner all  the  proceeds  of  the  following  licenses:  Insurance  companies, 
$50  annually;  insurance  agents,  $3  annually. 

B.    FEES. 

To  secretary  of  state. — For  filing  articles  of  incorporation — when 
capital  stock  does  not  exceed  $25,000,  $5;  when  capital  stock  is 
from  $25,000  to  $100,000,  $10;  from  $100,000  to  $500,000,  $20; 
over  $500,000,  $25. 

To  insurance  commissioner. — For  filing  articles  of  incorporation, 
$10:  for  filing  annual  statement,  $10;  for  each  agent's  certificate,  fire, 
etc.,  $3;  for  each  agent's  certificate,  life,  $5. 

County  Revenues. 

a.    TAXES. 

I.    The  general  property  tax. 

1.  Base — 

The  property  included  and  the  methods  of  assessment 
and  of  equalization  are  the  same  for  county  as  for 
state  purposes. 

2.  Rate— 

The  board  of  county  commissioners  annually  ascer- 
tains the  necessary  rate  to  be  levied  on  each  $100  of 
taxable  property  for  state  taxes,  and  the  amount  neces- 
sary to  pay  outstanding  warrants.  The  rate  is  limited 
to  10  mills  on  the  dollar.  The  rate  may  not  exceed 
$1.50  per  $100  for  general  county  purposes  and  an 
additional  25  cents  for  bridges. 

3.  Collection — 

County  taxes  are  collected  in  substantially  the  same 
manner  as  state  taxes. 


TAXATION  AND  REVENUE  SYSTEMS— ILLINOIS. 


689 


II.  Poll  tax. 

Every  male  over  21  and  under  50  years  of  age,  except 
paupers,  insane  persons,  Indians  not  taxed,  Govern- 
ment prisoners,  active  members  of  volunteer  fire  com- 
panies, and  persons  permanently  disabled  so  as  to  be 
unable  to  perform  manual  labor,  and  honorably  dis- 
charged soldiers  in  the  volunteer  service  of  the  United 
States,  must  pay  an  annual  poll  tax  of  $2.  If  not  paid 
before  the  second  Monday  in  January,  the  tax  becomes 
$2.50.     This  is  collected  by  the  tax  collector. 

III.  Inheritance  tax. 

There  is  no  inheritance  tax. 

IV.  Corporation  taxes. 

All  corporations  are  taxed  under  the  general 
property  tax. 

V.  Business  taxes  and  licenses. 

The  county  receives  40  per  cent  of  the  moneys  col- 
lected for  licenses.     (See  State  licenses  for  description.) 

Municipal  Revenuks. 

a.    TAXES. 

I.    The  general  property  tax. 

1.  Base — 

The  property  included  and  the  method  of  assessment 
and  of  equalization  are  substantially  the  same  for 
municipal  as  for  state  and  county  purposes.  Cities 
can  not  make  a  separate  assessment. 

2.  Rate— 

The  council  or  trustees  of  each  city  or  village  certify 
the  rate  to  the  tax  collector  of  the  county.  The  limit 
is  10  mills  for  general  expenses,  but  other  taxes  may  be 
levied. 


3.   Collection — 

By  the  county  tax  collector  in  substantially  the 
same  manner  as  the  state  and  county  taxes.     The 
county  receives  5  per  cent  for  collection. 
II.  Poll  tax. 

Each  city  and  village  is  empowered  to  require  every 
able-bodied  male  to  work  two  days  on  the  streets  or 
highways,  or  to  provide  a  substitute.  Each  delinquent 
shall  forfeit  not  to  exceed  $1  per  day.  There  is  a  poll 
tax  for  road  districts  outside  the  cities  payable  in  labor 
or  commutable  at  $4. 
Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There  are   no   inheritance  or  corporation  taxes  for 
municipalities. 
V.  Business  taxes  and  licenses. 

School  districts,  and  cities  when  they  are  such, 
receive  50  per  cent  of  the  licenses  imposed  under  general 
state  laws.  (See  State  licenses.)  Cities  and  villages 
may  impose  a  license  upon  any  occupation  or  business. 
Dealers  in  liquor  must  secure  a  city  license. 

Cities  may  impose  a  license  tax  of  not  less  than  $3  nor  more  than 
$10  upon  owners  or  harborers  of  dogs. 

School  Revenues. 

The  school  revenues  consist  of  interest  on  the  public 
school  fund,  the  principal  of  which  is  derived  from 
proceeds  of  the  sale  of  lands  and  from  escheats;  an 
annual  county  tax  of  not  less  than  5  mills  nor  more 
than  10  mills  per  dollar,  also  fines  and  forfeitures; 
50  per  cent  of  licenses;  and  special  school  district 
taxes,  voted  by  the  school  districts,  of  not  to  exceed 
10  mills. 


ILLINOIS.1 


The  constitution  prescribes  a  general  property  tax 
for  state,  county,  and  municipal  purposes,  but  also 
authorizes  the  taxation  of  certain  occupations,  fran- 
chises, and  privileges.  A  marked  peculiarity  of  the 
Illinois  system,  and  one  which  changes  the  ordinary 
significance  of  the  tax  rates,  etc.,  is  the  definition  of 
"assessed  value"  as  one-fifth  of  the  "full  value"  or 
"fair  cash  value;"  a  rate  of  5  per  cent  on  the  assessed 
valuation  is  therefore  the  equivalent  of  a  tax  rate  of 
1  per  cent  on  the  full  valuation. 

Corporations  are  generally  taxed  in  the  same  man- 
ner as  individuals.  But  domestic  corporations  are 
also  taxed  on  the  excess  of  their  capital  stock  above 
the  value  of  their  tangible  property.  All  such  cor- 
porations except  manufacturing,  coal  mining,  news- 

'  This  compilation  is  derived  mainly  from  the  following  sources: 
Revenue  Laws  of  the  State  of  Illinois.     Auditor's  edition,   1898. 

Compiled  and  published  under  the  direction  of  James  S.  McCulloch, 

auditor  of  public  accounts,  Springfield,  111.,  1898. 
The,  Revised  Statutes  of  the  State   of  Illinois,  1903.     Being  all  the 

general  statutes  of  the  state  in  force  on  Januarv  1, 1904.     By  Harvey  B. 

Hurd,  Chicago,  1904. 


paper  publishing,  and  stock  breeding  corporations 
are  assessed  on  the  excess  by  the  state  board  of  equali- 
zation. Those  excepted  are  assessed  by  the  local 
assessors. 

The  poll  tax  is  used  solely  for  road  district  purposes. 

CONSTITUTIONAL    PROVISIONS. 
ARTICLE   IX. 

Sec.  1.  The  general  assembly  shall  provide  such  revenue  as  may  be 
needful  by  levying  a  tax  by  valuation,  so  that  every  person  and  cor- 
poration shall  pay  a  tax  in  proportion  to  the  value  of  his,  her,  or  its 
property — such  value  to  be  ascertained  by  some  person  or  persons  to 
be  elected  or  appointed  in  such  manner  as  the  general  assembly  shall 
direct,  and  not  otherwise;  but  the  general  assembly  shall  have  power 
to  tax  peddlers,  auctioneers,  brokers,  hawkers,  merchants,  commission 
merchants,  showmen,  jugglers,  innkeepers,  grocery  keepers,  liquor 
dealers,  toll  bridges,  ferries,  insurance,  telegraph  and  express  interests 
or  business,  vendors  of  patents,  and  persons  or  corporations  owning  or 
leasing  franchises  and  privileges,  in  such  manner  as  it  shall  from  time  to 
time  direct  by  general  law,  uniform  as  to  the  class  upon  which  it 
operates. 


932—07- 


-44 


690 


WEALTH,  DEBT,  AND  TAXATION. 


Sec.  2.  The  specification  of  the  objects  and  subjects  of  taxation  shall 
not  deprive  the  general  assembly  of  the  power  to  require  other  subjects 
or  objects  to  be  taxed  in  such  manner  as  may  be  consistent  with  the 
principles  of  taxation  fixed  in  this  constitution. 

Sec.  3.  The  property  of  the  state,  counties,  and  other  municipal  cor- 
porations, both  real  and  personal,  and  such  other  property  as  may  be 
used  exclusively  for  agricultural  and  horticultural  societies,  for  school, 
religious,  cemetery,  and  charitable  purposes,  may  be  exempted  from 
taxation  by  general  law.  In  the  assessment  of  real  estate  encumbered 
by  a  public  easement  any  depreciation  occasioned  by  such  easement 
may  be  deducted  from  the  valuation  of  such  property. 

Sec.  4.  The  general  assembly  shall  provide,  in  all  cases  where  it  may 
be  necessary  to  sell  real  estate  for  the  nonpayment  of  taxes  or  special 
assessments  for  state,  county,  municipal,  or  other  purposes,  that  a  return 
of  such  unpaid  taxes  or  assessment  shall  be  made  to  some  general  officer 
of  the  county  having  authority  to  receive  state  and  county  taxes;  and 
there  shall  be  no  sale  of  said  property  for  any  of  said  taxes  or  assessments 
but  by  said  officer  upon  the  order  or  judgment  of  some  court  of  record. 

Sec.  6.  The  general  assembly  shall  have  no  power  to  release  or  dis- 
charge any  county,  city,  township,  town,  or  district  whatever,  or  the 
inhabitants  thereof,  or  the  property  therein,  from  their  proportionate 
share  of  the  taxes  to  be  levied  for  state  purposes,  nor  shall  commutation 
for  such  taxes  be  authorized  in  any  form  whatsoever. 

Sec.  7.  All  taxes  levied  for  state  purposes  shall  be  paid  into  the  state 
treasury. 

Sec.  8.  County  authorities  shall  never  assess  taxes,  the  aggregate  of 
which  shall  exceed  75  cents  per  $100  valuation,  except  for  the  payment 
of  indebtedness  existing  at  the  adoption  of  this  constitution,  unless 
authorized  by  a  vote  of  the  people  of  the  county. 

Sec.  9.  The  general  assembly  may  vest  the  corporate  authorities  of 
cities,  towns,  and  villages  with  power  to  make  local  improvements  by 
special  assessment,  or  by  special  taxation  of  contiguous  property,  or 
otherwise.  For  all  other  corporate  purposes,  all  municipal  corporations 
may  be  vested  with  authority  to  assess  and  collect  taxes;  but  such  taxes 
shall  be  uniform  in  respect  to  persons  and  property,  within  the  jurisdic- 
tion of  the  body  imposing  the  same. 

Sec.  10.  The  general  assembly  shall  not  impose  taxes  upon  municipal 
corporations  or  the  inhabitants  or  property  thereof  for  corporate  pur- 
poses, but  shall  require  that  all  taxable  property  within  the  limits  of 
municipal  corporations  shall  be  taxed  for  the  payment  of  debts  con- 
tracted under  authority  of  law,  such  taxes  to  be  uniform  in  respect  to 
persons  and  property,  within  the  jurisdiction  of  the  body  imposing  the 
same.  Private  property  shall  not  be  liable  to  be  taken  or  sold  for  the 
payment  of  the  corporate  debts  of  municipal  corporations. 

ARTICLE  xiv. 

Separate  sections,  Illinois  Central  Railroad. — No  contract,  obligation, 
or  liability  whatever,  of  the  Illinois  Central  Railroad  Company,  to  pay 
any  money  into  the  state  treasury,  nor  any  lien  of  the  state  upon,  or 
right  to  tax  property  of  said  company  in  accordance  with  the  provisions 
of  the  charter  of  said  company,  approved  February  tenth,  in  the  year 
of  our  Lord  eighteen  hundred  and  fifty-one,  shall  ever  be  released, 
suspended,  modified,  altered,  remitted,  or  in  any  manner  diminished  or 
impaired  by  legislative  or  other  authority;  and  all  moneys  derived 
from  said  company,  after  payment  of  the  state  debt,  shall  be  appropri- 
ated and  set  apart  for  the  payment  of  the  ordinary  expenses  of  the  state 
government  and  for  no  other  purposes  whatever. 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

A.  In  counties  not  under  township  organization: 

(1)  The  county  treasurer,  elected  for  four  years,  who  is  ex  officio 
county  assessor. 

(2)  The  board  of  county  commissioners,  which  completes  the  assess- 
ment, equalizes  between  individuals,  and  hears  complaints. 


(3)  The  sheriff,  who  is  ex  officio  tax  collector. 

(4)  The  county  clerk,  who  acts  as  county  auditor. 

B.  In  counties  under  township  organization  having  less  than  125,000 
inhabitants  (Cook  county,  which  contains  the  city  of  Chicago,  is  the 
only  county  over  125,000): 

( 1 )  Township  assessors,  elected  for  one  year. 

(2)  The  county  treasurer,  who  is  ex  officio  supervisor  of  assessments 
and  controls  and  directs  the  township  assessors  in  their  work. 

(3)  The  county  board  of  review,  composed  of  the  clerk  of  the  county 
court,  the  chairman  of  the  county  board  of  supervisors,  and  one  citizen 
appointed  by  the  county  judge,  which  reviews  the  assessment,  equalizes 
between  taxpayers  and  townships,  and  hears  complaints. 

(4)  The  township  collectors,  elected  for  one  year. 

(5)  The  county  clerk,  who  acts  as  auditor. 

(6)  The  county  treasurer,  who  is  ex  officio  county  tax  collector,  and 
as  such  completes  the  work  of  the  township  collectors. 

C.  In  counties  over  125,000  (Cook  county  only;  see  note  under  B, 
immediately  above): 

(1)  The  board  of  assessors,  composed  of  five  members  elected  for  a 
full  term  of  six  years,  retiring  in  three  groups,  two  of  two  members  each 
and  one  of  one  member,  one  group  retiring  every  two  years.  The  board 
does  its  work  through  deputies  appointed  by  itself,  except  that  the 
township  assessors  in  districts  outside  of  Chicago  are  by  law  made 
deputies  of  the  board. 

(2)  The  board  of  review,  composed  of  three  members,  elected  for  a 
full  term  of  six  years,  one  retiring  every  two  years,  which  reviews  the 
assessment,  equalizes  between  taxpayers,  townships,  and  districts,  and 
hears  complaints. 

(3)  The  county  clerk,  who  acts  as  auditor. 

(4)  The  county  treasurer,  who  is  ex  officio  the  county  tax  collector. 

D.  In  state  at  large: 

(1)  The  state  board  of  equalization,  one  member  from  each  congres- 
sional district,  elected  for  four  years,  together  with  the  auditor  of  public 
accounts. 

(2)  The  auditor  of  public  accounts. 

State  Revenues. 

a.    TAXES. 

I.    The  general  property  tax. 
1.  Base — 

a.  The  property  included  and  exempt. — The  following 
classes  of  property  are  included  and  exempt: 

(1)  and  (2)  All  real  and  personal  property  in  the  state. 

All  moneys,  credits,  bonds  or  stocks,  and  other  investments,  the 
shares  of  stock  of  incorporated  companies  and  associations,  other  per- 
sonal property,  including  property  in  transitu  to  or  from  this  state, 
used,  held,  owned,  or  controlled  by  persons  residing  in  this  state. 

Shares  or  capital  stock  of  banking  companies  doing  business  in  this 
state. 

Capital  stock  of  domestic  companies. 

The  net  receipts  of  foreign  fire,  marine  and  inland  navigation  insur- 
ance companies  are  taxed  as  property  is  taxed. 

(3)  Exemptions,  in  addition  to  all  public  property,  are:  All  property 
of  institutions  of  learning  or  of  purely  public  charity;  all  church  prop- 
erty, cemeteries,  and  free  public  libraries;  all  property  used  by  societies 
for  agricultural,  horticultural,  mechanical,  and  philosophical  purposes 
and  not  used  for  pecuniary  profit. 

b.  Assessment. — In  general,  there  is  but  one  assess- 
ment for  state,  county,  and  municipal  purposes,  and 
that  is  made  by  the  town  and  district  assessors,  or  in 
counties  not  under  township  organization,  by  the 
county  assessor;  or  when  made  by  any  other  body, 
as,  in  a  few  instances,  by  the  state  board  of  equaliza- 
tion, it  is  apportioned  to  the  towns  and  districts  as 


TAXATION  AND  REVENUE  SYSTEMS— ILLINOIS. 


691 


if  so  made.  This  assessment  depends  very  largely 
upon  the  sworn  statement  or  list  made  by  the  tax- 
payer, who  is  required  to  list  his  property  at  its  full 
cash  value.  But  the  "assessed  value"  fixed  by  the 
assessor  is  only  one-fifth  of  the  full  value.  Property 
is  assessed  as  of  the  1st  day  of  April  (until  1898  it  was 
the  1st  day  of  May).  A  law  passed  in  1898  provided 
that  real  estate  should  be  assessed  once  in  four  years 
only,  beginning  in  1899.  But  the  "general  assess- 
ment" so  made  is  corrected  annually  for  changes  prior 
to  April  1.  Real  estate  is  "assessed"  at  one-fifth  its 
full  value.  The  sum  secured  by  a  mortgage  is  taxable 
as  a  credit  of  the  mortgagee.  Personal  property  is 
assessed  annually  at  one-fifth  its  value. 

Owners  of  real  estate  are  required  to  list  their  property,  but  the  value 
is  determined  by  the  assessor  on  "actual  view." 

Owners  of  personal  property  are  required  to  list  the  same  at  its 
fair  cash  value  and  swear  to  the  list  and  value,  but  the  law  further 
requires  that  the  assessor  shall  determine  the  fair  cash  value;  only  one- 
fifth  of  the  full  value  is  assessed.  With  certain  exceptions,  personal 
property  is  assessed  in  the  town,  city,  village,  district,  or  county  where 
the  owner  resides.  The  penalty  for  refusal  to  make  out  a  list  or  swear 
to  it  is  a  fine  of  not  less  than  $100  nor  more  than  $.5,000,  and  the  assessed 
value  is  increased  50  per  cent. 

Government  lands  located  prior  to  May  1  are  taxable  for  that  year 
as  real  estate. 

All  corporations  organized  under  the  laws  of  the  state,  except  com- 
panies for  purely  manufacturing  purposes,  or  for  the  mining  and  sale 
of  coal,  or  for  printing,  or  for  publication  of  newspapers,  or  for  the 
improving  or  breeding  of  stock,  which  excepted  companies  are  assessed 
only  on  their  property  by  the  local  assessors  in  the  same  manner  as 
individuals,  and  except  the  Illinois  Central  Railroad  Company,  not  sub- 
ject to  tho  general  property  tax  (sec  Corporation  tax),  and  railroad, 
telegraph,  and  telephone  companies  assessed  by  the  state  board  of 
equalization,  and  banks  and  insurance  companies  generally,  whose 
assessment  is  described  below,  are  assessed  as  follows:  First,  by  the 
local  assessors  on  the  value  of  their  tangible  property;  second,  by  the 
state  board  of  equalization  on  the  excess  in  the  value  of  their  capital 
stock,  including  the  franchise,  over  that  of  their  tangible  property,  and 
the  excess  so  assessed  is  certified  to  the  local  assessors  where  the  com- 
pany is  located. 

Railroads  (except  the  Illinois  Central  Railroad)  are  assessed  by 
the  state  board  of  equalization  and  the  local  assessors.  The  latter 
assess  all  real  estate  not  included  in  right  of  way  or  "railroad  track" 
and  the  tools  and  materials  for  repairs,  and  all  other  personalty  except 
"rolling  stock."  The  former  assesses  the  "railroad  track"  and  the 
"rolling  stock,"  apportioning  the  value  of  the  "main  track"  and  "roll- 
ing stock"  by  a  unit  rule  among  the  counties,  where  it  is  reapportioned 
by  the  county  clerk  among  the  townships,  etc.;  but  the  "side  track"  is 
assessed,  where  it  is  situated,  by  the  state  board  and  is  not  so  appor- 
tioned. The  railroads  are  required  to  assist  in  the  assessment  by  list- 
ing their  property  in  each  county  with  the  county  clerks  and  in  the  stato 
as  a  whole  with  the  auditor  of  public  accounts.  The  state  board  is  also 
required  to  assess  the  excess  value  of  capital  stock  over  the  valuo  of 
tangible  property  as  assessed,  if  there  be  any  such  excess. 

Telegraph  and  telephone  companies. — Tho  state  board  of  equalization 
assesses  the  capital  stock  of  such  companies,  deducting  the  assessed 
value  of  property  locally  taxed,  and  apportions  the  amount  among 
the  several  counties  as  railroad  assessments  are  apportioned. 

Mortgages. — Where  a  deed  for  real  estate  is  held  for  the  payment  of  a 
sum  of  money,  such  sum  so  secured  is  held  to  be  personal  property  and 
must  be  listed  as  credits  by  the  mortgagee. 

Shares  of  stock  of  foreign  corporations  are  assessed  to  the  share- 
holder at  his  residence.  Shares  in  state  and  national  banks  are  assessed 
to  the  shareholder  where  the  bank  is  located.  No  deduction  is  allowed 
for  real  estate  and  assets  assessed  to  the  bank. 


Mutual  building  and  loan  association  stock  is  assessed  to  the  stock- 
holders. In  determining  the  value  of  the  stock  the  value  of  the  real 
estate  is  first  deducted. 

Property  of  banks. — Banks  other  than  state  or  national  are  taxed  on 
their  moneys,  personal  property,  credits,  bonds,  and  stocks,  less  deposits 
and  other  accounts  payable. 

Money  and  credits. — From  the  gross  amount  of  credits  the  taxpayer 
may  deduct  from  his  list  the  amount  of  all  bona  fide  debts  owing  by  him. 
These  deductions  must  bo  verified  by  oath. 

Pawnbrokers  are  assessed  on  the  value  of  the  property  pledged  and 
held  by  them. 

Franchises  granted  by  the  state  are  to  be  listed  as  personal  property. 

Insurance  agencies  are  assessed  upon  their  net  receipts  as  property. 

c.  Equalization. — In  counties  not  under  township 
organization,  the  board  of  county  commissioners  equal- 
izes between  taxpayers,  townships,  and  districts,  and 
may  increase  or  lower  the  total  assessment  of  each  of 
the  several  classes  of  property. 

In  counties  under  township  organization,  excepting 
Cook  county,  the  same  powers  rest  in  the  county 
board  of  review. 

In  Cook  county  there  is  a  specially  constituted  board 
of  review  for  this  work. 

State  board  of  equalization  equalizes  between  the 
several  counties,  considering  various  classes  of  property 
separately.  It  may  lower  or  raise  the  total  assessed 
value  of  property  in  any  county,  but  the  total  of  such 
decrease  or  increase  may  not  exceed  10  per  cent  of  the 
total  assessed  value  of  all  the  property  in  the  state. 

2.  Rate— 

The  rate  per  cent  required  to  produce  the  amount 
of  taxes  levied  by  the  general  assembly  is  to  be  ascer- 
tained annually  by  the  governor,  auditor,  and  treas- 
urer. The  amount  of  taxes  is  extended  by  the  county 
clerk  on  the  assessed  value  of  property  as  equalized 
by  the  state  board  of  equalization.  Separate  rates 
|  are  certified  for  the  "revenue  fund,"  the  "interest 
fund,"  "state  school  fund,"  and  other  taxes. 

By  an  act  of  May  9,  1901,  the  rate  per  cent  is  limited  not  to  exceed 
5  per  cent  of  the  assessed  valuation. 

3.  Collection — 

In  general,  all  taxes — state,  county,  and  municipal — 
are  collected  by  the  same  collectors.  In  counties  hav- 
ing township  organization,  except  Cook  county,  this 
is  done  by  the  township  collectors;  in  other  counties 
by  the  county  collectors,  except  that  in  counties  under 
township  organization  railroad  taxes  are  paid  directly 
to  the  county  treasurer,  who  is  made  ex  officio  tax  col- 
lector for  that  purpose.  Personal  property  taxes  may 
be  collected  by  distress  and  sale  of  goods  and  chattels. 
Taxes  on  personal  property  not  sufficiently  secured  by 
such  personal  property  may  become  a  lien  on  the 
real  estate  of  the  taxpayer.  They  are  due  and  pay- 
able when  demanded  by  the  collector  who  receives 
warrant  for  their  collection  and  the  collection  of  taxes 
on  real  property  on  or  before  December  21.  Taxes  on 
real  estate  become  delinquent  March  10  in  the  year 
succeeding  assessment  and  the  land  may  be  sold  for 
taxes  after  publication  of  the  proper  notice  any  time 


692 


WEALTH,  DEBT,  AND  TAXATION. 


after  one  year  from  April  1 ,  following.  Taxes  become 
a  lien  upon  real  property  May  1  of  the  year  in  which 
the  taxes  are  levied.  There  are  no  special  penalties 
for  delinquency,  but  interest  is  charged  from  May  1, 
after  the  taxes  become  delinquent. 

II.  Poll  tax. 

There  is  no  state  poll  tax. 

III.  Inheritance  tax. 

All  property  passing  by  will,  descent,  or  transfer 
taking  effect  after  death  is  subject  to  this  tax.  The 
rate  for  property  passing  to  the  father,  mother,  hus- 
band, wife,  brother,  sister,  wife  or  widow  of  the  son  or 
husband  of  the  daughter,  adopted  child  or  any  legiti- 
mate lineal  descendant,  is  1  per  cent  on  the  excess  over 
$20,000;  passing  to  any  uncle,  aunt,  niece,  nephew,  or 
lineal  descendant  thereof,  2  per  cent  on  the  excess  over 
$2,000.  In  all  other  cases,  3  per  cent  on  estates  under 
$10,000;  4  per  cent,  $10,000  to  $20,000;  5  per  cent, 
$20,000  to  $50,000;  6  per  cent,  over  $50,000.  The  tax 
is  collected  by  the  county  treasurer  for  the  benefit  of 
the  state.  By  an  act  of  1901,  property  passing  for 
religious,  educational,  or  charitable  purposes  is  ex- 
empted from  the  tax. 

-  IV.   Corporation  taxes. 

Corporations  are,  for  the  most  part,  taxed  under 
the  general  property  tax.  The  slight  differences  in 
the  method  of  assessment  applied  to  corporate  prop- 
erty have  been  described  above.  In  the  following 
cases  the  principles  of  the  general  property  tax  are 
departed  from: 

(1)  The  Illinois  Central  Railroad  pays  7  per  cent  on  its  gross  earn- 
ings, made  up  as  follows:  Five  per  cent  on  gross  earnings  paid  semi- 
annually; a  tax  not  to  exceed  three-fourths  of  1  per  cent  on  assessed 
valuation  of  property;  enough  more  to  bring  the  total  up  to  7  per  cent 
of  gross  earnings.     This  tax  is  paid  to  the  state. 

(2)  Foreign  insurance  companies,  other  than  life,  are  required  to 
pay  2  per  cent  of  the  gross  amount  of  premiums  received  for  business 
done  in  the  state.  This  tax  is  in  lieu  of  all  taxes,  state  and  local, 
except  on  real  estate  and  except  reciprocal  taxes,  and  the  tax  is  col- 
lected by  the  insurance  superintendent.  All  burglary  and  casualty 
insurance  companies,  domestic  and  foreign,  doing  business  in  the  state 
on  the  mutual  plan  are  required  to  pay  2  per  cent  on  cash  collected  as 
premiums  from  policy  holders  residing  in  Illinois  in  lieu  of  other  munic- 
ipal or  state  taxes. 

V.  Business  taxes  and  licenses. 

Insurance  superintendent's  certificate  of  authority  to  agent  of  for- 
eign insurance  company,  $2;  license  to  agents  to  procure  fire  policies 
in  unauthorized  companies,  $200,  counties  having  less  than  100,000 
inhabitants,  $25;  commission  merchants,  $25;  itinerant  vendors  of 
drugs,  per  month,  $100. 

B.    FEES. 

The  fees  are  payable  to  state  officials  and  are  to  be 
paid  into  the  state  treasury,  as  revenue: 

By  secretary  of  state. — Incorporation,  capital  up  to  $2,500,  $30; 
capital  $2,500  to  $5,000,  $50;  over  $5,000,  for  each  additional  $1,000 
capital,  $1;  for  various  certificates  and  filings,  $1. 


By  clerk  of  the  supreme  court. — Various  fees. 

By  superintendent  of  insurance. — Application  for  certificate  of  au- 
thority, $30;  filing  annual  statement,  $10;  agent,  certificate  of  author- 
ity, $2. 

By  the  several  boards. — Practice  of  medicine,  examination,  and  cer- 
tificate, $15;  practice  of  pharmacy,  annual  registrational;  practice  of 
dentistry,  examination,  $10. 

County  Revenues. 

a.   TAXES. 

I.  The  general  property  tax. 

1.  Base — 

The  property  included  is  the  same  for  the  county 
tax  as  for  the  state.  The  taxes  are  extended  upon 
the  valuation  ascertained  by  the  equalization  and 
assessment  of  property  by  the  county  board  of  re- 
view, and  all  property  originally  assessed  by  the  state 
board  of  equalization. 

2.  Rate— 

The  county  board  of  the  respective  counties  deter- 
mines the  amount  to  be  raised  for  county  purposes, 
which  is  not  to  exceed  75  cents  on  each  $100  valuation 
of  property,  unless  otherwise  authorized  by  vote  of  the 
county. 

3.  Collection — 

Collection  is  made  as  of  state  taxes  by  the  town  and 
district  collectors,  who  make  settlement  with  the 
county  collectors. 

II,  III,  IV.  Poll  tax,  inheritance  tax,  and  corporation 

taxes. 
There  are  no  county  poll,  inheritance,  or  corporation 
taxes. 

V.  Business  taxes  and  licenses. 

Dogs  (in  counties  not  under  township  organization  license  fees  are 
kept  by  county),  $1. 

County  boards  in  counties  under  township  organization,  and  coujuty 
commissioners  in  others,  may  issue  licenses  for  the  sale  of  liquor  at  not 
less  than  $.500  per  annum.     Malt  liquor  only,  $150  per  annum. 

These  licenses  become  part  of  the  general  revenue  of  the  county. 

B.    FEES. 

The  following  county  officials  are  required  to  pay  over  to  the  county 
treasurer  the  fees  of  their  offices:  Clerks  of  circuit  court;  recorder  of 
deeds;  county  clerk:  sheriff;  and  masters  in  chancery. 

Municipal  Revenues. 

a.    TAXES. 

I.   The  general  property  tax. 

1.  Base — 

The  property  included  and  the  method  of  assessment 
and  of  equalization  are  as  described  under  the  state 
and  county  taxes. 

2.  Rate— 

The  proper  authorities  of  towns,  townships,  dis- 
tricts,   and   incorporated   cities,   towns,    and   villages 


TAXATION  AND  REVENUE  SYSTEMS— INDIAN  TERRITORY. 


693 


certify  to  the  county  clerk  the  amounts  to  be  raised 
by  taxation,  and  such  clerk  determines  the  rate  per 
cent  upon  the  valuation  that  will  produce  the  net 
amount. 

3.   Collection — 
Collection  is  in  general  the  same  as  for  state  taxes 
and  is  made  by  the  town  or  district  collectors. 

II.  Poll  tax. 

Not  generally  collected  by  cities,  but  Alton  collects 
$1.50  in  lieu  of  two  days'  work  on  streets. 

III.  Inheritance  tax. 

There  is  no  inheritance  tax. 

IV.  Corporation  taxes. 

Foreign  fire  insurance  companies  are  to  pay,  for  the 
benefit  of  the  fire  department,  2  per  cent  of  the  gross 
receipts  received  by  their  agency  in  any  city,  town,  or 
village. 

V.  Business  taxes  and  licenses. 

The  city  council  in  cities  and  the  board  of  trustees 
in  villages  fix  the  amount  and  terms  of  licenses,  includ- 
ing liquor  licenses. 

Liquor  licenses  are  to  be  not  less  than  $500  per  annum;  malt  liquors 
only  $150  per  annum. 


School  Revenues. 

Cities,  villages,  and  school  districts  have  authority 
to  levy  a  tax  up  to  2\  per  cent  on  the  last  assessment 
for  state  and  county  taxes. 

The  common  school  fund  of  the  state  consists  of  the 
proceeds  of  a  2-mill  tax  levied  in  the  state  assessment 
list  annually,  the  interest  on  the  school  fund  proper, 
being  3  per  cent  upon  the  proceeds  of  the  sales  of  pub- 
lic land,  and  the  interest  on  the  surplus  revenue  fund. 
This  fund  is  apportioned  to  each  county  in  proportion 
to  the  number  of  children.  ' 

The  township  and  county  school  fund  £pnsists._of 
the  interest  on  the  proceeds  of  the  sale  of  the'six- 
teenth  section  of  common  school  lands. 

Road  Revenues. 

Road  commissioners  are  to  make  a  list  of  the  able- 
bodied  men  in  their  town  between  the  ages  of  21  and 
50  years  and  assess  not  less  than  $1  nor  more  than  $2 
as  a  poll  tax  for  highway  purposes.  This  list  is  not  to 
include  persons  within  the  limits  of  cities  or  incorpo- 
rated villages.  Towns  may  abolish  the  poll  tax  by 
vote,  or  may  by  vote  adopt  the  "labor  system"  for 
payment  of  the  district  road  tax. 


INDIAN  TERRITORY. 


The  Curtis  bill,  chapter  517  of  the  act  of  Congress, 
June  28,  1898,  provides: 

Any  city  or  town  in  Indian  Territory  having  two  hundred  or  more 
residents  may  become  incorporated.  "  Such  city  or  town  governments 
shall  in  no  case  have  any  authority  to  impose  upon  or  levy  any  tax 
against  any  lands  in  said  cities  or  towns  until  after  title  is  secured  from 
the  tribe;  but  all  other  property,  including  all  improvements  cfr  town 
lots,  which  for  the  purposes  of  this  act  shall  be  deemed  and  considered 
personal  property,  together  with  all  occupations  and  privileges,  shall 
be  subject  to  taxation  *  *  *  and  the  councils  of  such  cities  and 
towns,  for  the  support  of  the  same  and  for  school  and  other  public  pur- 
poses, may  provide  by  ordinance  for  the  assessment,  levy,  and  eollection 
annually  of  a  tax  upon  such  property,  not  to  exceed  in  the  aggregate 
two  per  centum  of  the  assessed  value  thereof,  in  the  manner  provided 
in  chapter  129  of  said  digest,  entitled  '  revenue,'  and  for  such  purposes 
may  also  impose  a  tax  upon  occupations  and  privileges."  (The  digest 
referred  to  in  the  Curtis  bill  is  Mansfield's  Digest  of  the  Statutes  of 
Arkansas,  1884.) 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  The  county  assessor,  elected  for  two  years. 

(2)  The  county  board  of  equalization,  composed  of  three  citizens 
appointed  by  the  governor. 

(3)  The  sheriff  of  each  county,  who  is  ex  officio  tax  collector. 

(4)  The  clerk  of  the  county  court,  who  acts  as  county  auditor. 


•This  compilation  is  derived  mainly  from  the  following  sources: 
Act  of  Congress,  June  28,  1898,  chap.  517,  known  as  the  Curtis  bill. 
Mansfield's  Digest  of  the  Statutes  of  Arkansas,  1884. 
Annotated  Statutes  of  the  Indian  Territory.     Dorset  Carter.     West 
Pub.  Co.,  St.  Paul,  Minn.,  1899. 


Territorial  Revenues. 


A.    TAXES. 


I.    The  general  property  tax. 
1.  Base — 

a.  The  property  included  and  exempt. — All  property, 
except  that  of  Indians  or  Indian  tribes,  whether  real 
or  personal,  in  the  territory,  all  moneys,  credits,  in- 
vestments of  persons  residing  therein,  unless  exempted, 
is  subject  to  taxation. 

(1)  "Real  property"  includes  not  only  the  land  itself,  but  all  build- 
ings, structures,  rights  and  privileges  belonging  thereto. 

(2)  "Personal  property"  includes  chattels,  credits,  and  everything 
not  part  of  any  parcel  of  real  property. 

(3)  Exemptions,  in  addition  to  public  property,  are:  Churches,  col- 
leges, and  public  institutions  of  learning  not  managed  with  a  view  to 
profit;  cemeteries;  and  institutions  of  purely  public  charity. 

b.  Assessment. — The  assessment  is  made  by  the 
county  assessor.  Every  person  is  required  to  list  his 
real  as  well  as  his  personal  property,  and  the  list  must 
be  sworn  to  and  show  the  value  of  the  real  items.  Real 
property  is  to  be  assessed  in  the  odd  years  as  of  the 
first  Monday  in  June  and  at  its  true  value,  buildings 
being  valued  separately;  and  personal  property,  as  of 
the  first  Monday  in  February  of  each  year.  Refusal 
to  furnish  the  list  is  a  misdemeanor  punishable  by-fine 
or  imprisonment. 

Gas,  telephone,  bridge,  street  railroad,  savings  bank,  mutual  loan,  and 
all  other  corporations  are  assessed  on  the  basis  of  special  lists  showing 


694 


WEALTH,  DEBT,  AND  TAXATION. 


the  value  of  tangible  and  intangible  property.  Railroads  are  assessed  in 
every  second  year  by  the  railroad  commissioners,  composed  of  the  gov- 
ernor, secretary  of  state,  and  auditor  of  public  accounts.  The  secre- 
tary of  state  is  to  certify  to  the  assessor  of  each  county  so  much  of  the 
value  of  the  railroad  track  as  is  located  in  the  county,  or  in  any  city  or 
town,  as  real  estate.  Rolling  stock  is  apportioned  by  mileage.  Prop- 
erty other  than  rolling  stock  and  railroad  track  is  to  be  assessed  on  the 
1st  of  March  in  each  year  by  the  county  assessors. 

Merchants  are  to  be  assessed  on  the  average  value  of  their  stock  in 
trade.  Manufacturers  are  likewise  assessed  on  the  average  value  of 
materials  received  for  manufacture. 

Banks  are  assessed  on  the  amount  of  capital  paid  in,  undivided  profits, 
credits,  and  amounts  deposited.  Taxes  on  shares  in  banks  are  to  be 
paid  by  the  banks  as  agents  of  the  shareholders. 

Pawnbrokers  are  to  be  assessed  on  property  pledged. 

Express  and  telegraph  companies  are  to  be  assessed  on  gross  receipts 
as  personal  property,  and  their  real  and  personal  property  is  also  assessed. 

c.  Equalization. — The  county  court  hears  objections 
to  the  levy  of  taxes,  and  an  appeal  lies  to  the  circuit 
court. 

The  county  board  of  equalization,  composed  of  three 
citizens  appointed  by  the  governor,  equalizes  the  as- 
sessment of  real  and  personal  property. 

2.  Rate— 

The  rate  of  taxation  for  state  purposes  is : 
General  expenses,  one-half  of  1  mill  on  the  dollar;  sinking  fund  and 
interest,  4  mills  on  the  dollar;  public  schools,  2  mills  on  the  dollar. 

3.  Collection — 

Taxes  are  collected  by  the  sheriff  of  the  county,  who 
is  ex  officio  collector,  and  are  due  and  payable  be- 
tween the  first  Monday  in  November  and  the  10th  of 
February.  Taxes  on  real  and  personal  property  are  a 
lien  on  such  property  from  the  first  Monday  in  Febru- 
ary. After  the  10th  day  of  February  taxes  may  be  col- 
lected by  distraint  of  personal  property — garnishment. 
Sale  of  lands  for  delinquent  taxes  is  made  after  the  sec- 
ond Monday  in  April. 

II.  Poll  tax. 

For  common  school  purposes  $1  per  capita  is  to  be 
levied  annually  on  every  male  inhabitant  over  21  years 
of  age. 
Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There  are  no  inheritance  or  corporation  taxes. 
V.  Business  taxes  and  licenses. 

Privileges  subject  to  taxation  for  state  purposes  are: 

Hawkers  and  peddlers,  each  six  months,  $25;  clock  peddlers,  lightning 
rod,  and  stove  agents,  per  year,  $100;  sewing  machine  agents,  per  year, 
$200;  traveling  insurance  agents,  matrimonial,  and  nuptial  associations, 
per  year,  $100;  vendors  of  liquors,  per  year,  $300. 


County  Revenues. 


a.   TAXES. 


I.  The  general  property  tax. 

1.  Base — 

The  property  included  and  the  assessment  and 
equalization  are  the  same  for  county  taxes  as  for  state. 

2.  Rate- 
lot  county  purposes,  indebtedness,  and  public  schools,  each,  5  mills 

on  the  dollar. 

3.  Collection — 
Same  as  for  state. 

II,  III,  and  IV.  Poll  tax,  inheritance  tax,  and  corpora- 

tion taxes. 
There  are  no  county  poll,  inheritance  or  corporation 
taxes. 

V.  Business  taxes  and  licenses. 

Privileges  subject  to  taxation  for  county  purposes: 

Hawkers  and  peddlers,  each  six  months,  $2.5;  circus,  menagerie,  per 
day,  $100;  side  shows,  per  day,  $.50;  public  exhibitions,  per  day,  $5;  auc- 
tioneers, per  year,  $10;  vendors  of  liquors,  per  year,  $400;  criminal  con- 
viction, courts  of  record,  $3;  civil  suits,  each,  $3;  writs  of  summons  and 
execution,  and  records,  each,  50  cents. 

Municipal  Revenues. 

A.    TAXES. 

I.    The  general  property  tax. 

1.  Base — 

All  levies  of  taxes  in  cities  and  towns  are  to  be  based 
upon  the  appraisement  of  the  county  assessor,  as  equal- 
ized for  the  levy  of  state  and  county  taxes. 

2.  Rate— 

The  rate  is  limited  to  2  per  cent  upon  the  assessed 
value. 

3.  Collection — 

Same  as  for  county  taxes. 

Note. — Owing  to  the  fact  that  prior  to  1902  no  territorial  or  county 
governments  had  been  organized  in  Indian  Territory,  the  greater  part 
of  the  Arkansas  laws  given  above  were  at  that  time  practically  inopera- 
tive. The  civilized  Indian  nations  collected  small  amounts  of  special 
taxes  on  I've  stock  and  the  incorporated  cities  and  towns  made  their  own 
assessments  and  collected  revenue  under  the  provisions  of  the  Curtis 
bill,  referred  to  above. 


INDIANA. 


Indiana  depends  mainly  upon  the  general  property 
tax.  This  tax  has  substantially  the  same  form  as  in 
other  states;  but  there  are  radical  differences  in  the 
administration  which  distinguish  the  so-called  "In- 
diana system"  from  that  of  other  states.  These 
distinguishing  features  are:  (1)  A  state  tax  com- 
mission, with  full  directive  and  supervisory  powers 

'This  compilation  is  derived  mainly  from  Burns's  Annotated  Indiana 
Statutes,  1901,  three  volumes  and  an  index:  Indianapolis,  The  Bowen- 
Merrill  Company,  1901. 


over  the  local  assessors;  (2)  a  county  assessor  in  each 
county,  responsible  to  the  tax .  commissioners,  exer- 
cising supervisory  authority  over  the  township  assess- 
ors and  with  power  to  make  assessments  where  the 
local  assessors  fail  to  do  so;  (3)  a  regular  system  of 
conferences,  at  which  assessment  officers  agree  upon 
the  policy  to  be  followed. 

The  provisions  of  the  law  are  minute  and  detailed 

in  the  extreme,  and  it  is  in  the  attention  to  detail 

!  rather  than  in  any  difference  in  principle  that  the 


TAXATION  AND  REVENUE  SYSTEMS— INDIANA. 


695 


characteristics  of  the  system  are  to  be  found.  But 
these  details  do  not  lend  themselves  to  classification 
and  can  not  be  shown  in  the  following  abstracts. 

There  is  no  inheritance  tax  and  practically  nothing 
in  the  way  of  special  taxes  on  corporations. 

Another  feature  of  the  Indiana  system  is  that  it 
places  the  collection  of  all  taxes — state,  county,  and 
municipal — in  the  hands  of  one  person — the  county 
tax  collector — thus  bringing  all  the  taxes  levied  on 
one  person  together  as  one  bill  or  at  least  into  one 
payment. 

CONSTITUTIONAL    PROVISIONS. 

ARTICLE    IV. 

Sec.  22  (■§  118).  The  general  assembly  shall  not  pass  local  or  special 
laws  in  any  of  the  following  enumerated  cases,  *  *  *  for  the 
assessment  and  collection  of  taxes  for  state,  county,  township,  or  road 
purposes. 

ARTICLE    X. 

Sec.  1  (§  193).  The  general  assembly  shall  provide,  by  law,  for  a 
uniform  and  equal  rate  of  assessment  and  taxation;  and  shall  prescribe 
such  regulations  as  shall  secure  a  just  valuation  for  taxation  of  all 
property,  both  real  and  personal,  excepting  such  only  for  municipal, 
educational,  literary,  scientific,  religious,  or  charitable  purposes  as 
may  be  specially  exempted  by  law. 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  The  township  assessors,  one  in  each  township,  elected  every  four 
years. 

(2)  The  county  assessors,  one  in  each  county,  elected  every  four 
years. 

(3)  The  state  board  of  tax  commissioners,  two  persons,  appointed 
by  the  governor  for  a  term  of  four  years,  together  with  the  secretary  of 
state,  the  auditor  of  state,  and  the  governor,  ex  officio. 

(4)  The  county  auditors,  one  in  each  county,  elected  every  four  years. 

(5)  The  county  board  of  review,  composed  in  each  county  of  the 
county  assessor,  county  auditor,  and  county  treasurer,  and  two  free- 
holders, to  be  appointed  by  the  judge  of  the  circuit  court. 

(6)  The  county  treasurers  are  county  tax  collectors,  and  are  elected 
for  four  years. 

N.  B. — City  assessments  are  made  by  township  assessors. 

State  Revenues. 

a.  taxes. 

I.   The  general  property  tax. 
1.  Base — 
a.   The  property  included  and  exempt. — All  property 
within   the   jurisdiction   of   the   state    not   expressly 
exempted  is  subject  to  taxation.     Property  is  classi- 
fied for  purposes  of  taxation  as  follows: 

(1)  Real  property,  which  includes  all  land  within  the  state,  and  all 
buildings  and  fixtures;  "railroad  track,"  including  the  right  of  way, 
stations,  and  improvements,  except  machinery,  stationary  engines, 
and  other  fixtures,  which  are  considered  personal  property.  Possessory 
claims  are  treated  as  personal  property. 

(2)  Personal  property,  which  includes  all  goods  and  chattels  within 
the  state;  all  ships  and  vessels  at  home  or  abroad  owned  in  the  state; 


all  goods,  etc.,  outside  the  state  but  owned  by  the  inhabitants,  except 
property  permanently  invested  in  another  state;  all  credits  less  debts; 
all  shares  in  corporations,  not  exempt,  unless  the  corporation  is  itself 
taxed  on  all  its  property;  shares  in  national  banks,  less  the  value  of 
real  estate  taxed  to  the  bank;  all  shares  in  foreign  corporations  except 
national  banks;  all  moneys;  all  annuities  and  royalties;  all  interests 
owned  by  individuals  in  lands  the  fee  of  which  is  in  the  United  States; 
railroad  rolling  stock;  franchises  granted  by  the  law  of  the  state  and 
used  by  any  person  or  corporation;  the  mains,  pipes,  and  wires  of  gas, 
electric  light,  and  waterworks  companies. 

Any  person  owning  real  estate  subject  to  a  mortgage  not  exceeding 
$700  nor  half  the  value  of  the  property  may,  by  reporting  the  fact, 
have  the  mortgage  assessed  to  the  mortgagee  and  enjoy  a  deduction 
of  that  amount  from  the  assessed  valuation  of  the  land. 

(3)  Exemptions  from  taxation  include  the  personal  and  real  property 
of  every  manual  labor  school  or  college  incorporated  in  the  state,  such 
real  estate  not  to  exceed  320  acres;  every  building  used  for  educational, 
literary,  scientific,  or  charitable  purposes  and  the  land  thereof  not 
exceeding  40  acres;  also  the  personal  property,  endowment,  and  in- 
come belonging  to  any  such  institution,  churches,  and  cemeteries. 

b.  Assessment. — In  general  there  is  but  one  assess- 
ment for  the  property  tax  for  state,  county,  and 
municipal  purposes.  Most  property  is  assessed  by 
the  township  assessors,  who  work  under  the  immediate 
supervision  of  the  county  assessors,  who  have  power 
to  list  property  omitted,  and  the  county  assessors  in 
turn  are  under  the  direction  of  the  state  board  of  tax 
commissioners.  This  arrangement,  giving,  as  it  does, 
direct  administrative  control  from  the  top  down,  is 
peculiar  to  the  so-called  "Indiana  system." 

In  general,  property  is  assessed  on  the  basis  of  sworn 
statements  returned  to  the  assessors  by  the  taxpayers, 
but  the  property  of  railroad,  telegraph,  and  certain 
other  large  corporations  is  assessed  by  the  state  board 
of  tax  commissioners  and  the  result  is  apportioned 
among  the  counties.  Very  heavy  penalties,  ranging 
from  $10  to  $5,000,  or  six  months  in  jail  and  50  per 
cent  increased  assessment,  are  provided  for  returning 
false  lists  or  for  refusal  to  swear  to  lists. 

Real  estate  is  assessed  but  once  every  four  years, 
the  last  assessments  being  in  1899  and  1903,  and  the 
assessment  is  revised  annually  for  improvements  and 
other  changes.  All  other  property  is  assessed  annually. 
The  assessment  formerly  referred  to  the  1st  of  April, 
but  in  1903  this  date  was  changed  to  the  1st  of  March. 

Personal  property  is  generally  assessed  where 
actually  located,  and  not  where  the  owner  resides. 

Land  is  to  be  valued  by  the  assessor  at  the  price  it 
would  bring  at  private  sale,  and  not  at  a  forced  or 
sheriff  sale.  The  same  rule  applies  to  personal 
property. 

Mortgaged  real  estate  is  assessed  to  the  mortgagor  at  full  value, 
except  that  the  owner  may  deduct  from  such  value  the  amount  of  any 
mortgage  not  exceeding  $700  nor  exceeding  one-half  the  assessed  value 
of  the  property,  provided  he  reports  the  name  and  address  of  the 
mortgagee,  who  is  then  taxed  upon  the  mortgage. 

All  interests  in  lands  the  fee  to  which  is  still  in  the  state  or  the 
United  States  are  to  be  assessed  as  personal  property,  but  lands  sold 
by  the  state  and  not  conveyed  are  to  be  taxed  as  if  conveyed. 


696 


WEALTH,  DEBT,  AND  TAXATION. 


Private  bankers  and  brokers  are  assessed  upon  their  real  estate  and 
the  excess  of  their  credits  over  their  debts  and  deposits. 

State  and  national  banks,  except  savings  banks,  are  assessed  upon 
their  real  estate,  only  the  shares  being  taxable  at  market  value,  or  if 
there  is  no  market  value,  at  book  value,  less  the  value  of  the  real 
estate.  The  assessment  is  made  to  the  shareholders  at  the  place  where 
•the  bank  is  located,  and  the  bank  officers  are  required  to  furnish  the 
names  and  residences  of  the  stockholders. 

Corporations  in  general  are  assessed  the  same  as  individuals  on  all 
corporate  property,  including  corporate  stock  and  franchises.  Corporate 
taxation  is  thus  a  part  of  the  general  property  tax  system  of  the  state. 
Shares  in  corporations,  all  the  property  of  which  is  taxable,  are  not 
assessed  to  the  shareholder.  Every  franchise  is  to  be  listed  and  assessed 
as  personal  property.  The  county  board  of  review  values  and  assesses 
the  capital  stock  and  all  franchises  and  privileges  of  domestic  corpora- 
tions, unless  otherwise  provided.  The  capital  stock  is  listed  for  taxa- 
tion at  its  excess  of  value  over  franchises  and  tangible  property. 

Telegraph,  telephone,  express,  sleeping  car,  freight  car,  and  pipe-line 
companies  are  assessed  by  the  state  board  of  tax  commissioners,  except 
upon  the  real  estate  not  necessarily  used  in  the  conduct  of  the  business 
of  such  companies.  This  assessment  is  made  by  the  unit  rule,  the  value 
of  the  entire  property  of  each  such  company  being  ascertained  from 
the  market  value  of  the  stocks,  plus  the  par  value  of  the  bonds,  and  the 
portion  used  in  Indiana  being  determined  on  a  mileage  basis.  The 
assessment  so  made  is  then  apportioned  among  the  counties,  etc.,  also 
on  a  mileage  basis. 

In  the  case  of  railroads  (including  street  railroads)  the  "railroad 
track"  and  "rolling  stock"  are  assessed  by  the  state  board  of  tax 
commissioners  in  the  same  manner  as  the  property  of  corporations 
named  above,  proper  allowance  being  made  for  the  value  of  property 
assessed  locally. 

Dogs  are  entered  in  the  list  of  property  but  not  valued.     (See  Rate.) 
Foreign  bridge  companies  are  assessed  upon  their  gross  receipts  as 
if  property,  as  well  as  upon  their  tangible  property. 

c.  Equalization. — The  county  board  of  review  an- 
nually equalizes  the  valuation  of  real  and  personal 
property  assessed  in  each  county.  The  board  passes 
upon  each  individual  valuation  and  revises  the  assess- 
ment list.  It  also  equalizes  as  between  townships  or 
divisions  of  townships  and  determines  a  rate  per  cent 
to  be  added  or  deducted  from  the  various  classes  of 
property  throughout  the  township.  If  necessary,  the 
board  may  set  aside  the  assessment  of  the  whole 
county  and  order  a  new  one,  but  it  has  no  power  to 
depart  from  the  true  cash  value  in  fixing  assessments. 

A  feature  of  equalization  in  practice  is  tjhe  annual 
meeting  of  the  county  assessors  of  the  state,  called  by 
the  state  board  of  tax  commissioners  for  purposes 
of  conference. 

The  state  board  of  tax  commissioners  hears  appeals 
from  the  county  board  of  review.  It  equalizes  its 
own  assessments  of  railroad  property.  In  the  years 
that  real  estate  is  assessed  it  equalizes  real  property 
assessments.  It  also  equalizes  the  assessment  lists 
between  the  several  counties,  adding  or  deducting  a 
rate  per  cent  according  to  classes  of  property  consid- 
ered separately. 

The  state  board  of  tax  commissioners  also  has 
certain  powers  which  work  effectual  equalization, 
though  not  so  called.  It  has  powers  of  supervision 
and    examination    over    the    county    and    township 


assessors.  Each  county  is  to  be  visited  once  in  each 
year  by  the  state  board.  Because  of  the  close  rela- 
tionship of  the  assessment  officials,  from  the  township 
assessors  to  the  state  tax  commissioners,  a  complete 
and  uniform  assessment  of  all  property  at  its  actual 
cash  value  is  secured,  and  an  equality  of  taxation  is 
attained. 

2.  Rate— 

The  rate  for  state  taxation,  expressed  in  cents  upon 
each  $100  valuation  for  state  expenditures,  is  fixed 
by  the  legislature. 

The  rate  on  dogs  is  $1  for  a  male,  $2  for  a  female,  and  $2  for  each 
additional  dog. 

3.  Collection — 

All  taxes  on  property,  whether  for  state,  county, 
school,  road,  or  other  purposes,  are  collected  by  the 
county  treasurer.  One-half  the  taxes,  including  all 
the  road  tax,  is  to  be  paid  on  or  before  the  first  Mon- 
day in  May,  the  remainder  by  the  first  Monday  in 
November.  Taxes  become  a  lien  on  all  real  estate 
from  the  1st  of  March,  and  such  lien  is  a  state  lien  and 
is  for  all  taxes,  state,  county,  school,  road,  or  town- 
ship. The  penalty  for  delinquency  is  10  per  cent  on 
the  first  and  6  per  cent  on  the  second  installment. 
The  county  treasurer  may  collect  by  levy  and  sale. 

II.  Poll  tax. 

The  poll  tax  is  assessed  on  every  male  inhabitant  of 
the  state  between  the  ages  of  21  and  50  years.  Every 
person  is  listed  for  his  poll  tax  in  the  county  of  his 
residence.  The  amount  to  be  charged  on  each  poll  is 
fixed  by  the  general  assembly  for  state  purposes  and 
for  schools.     Collection  is  made  by  the  county  treasurer. 

III.  Inheritance  tax. 

There  is  no  inheritance  tax.  The  property  in  the 
decedent's  estate  in  the  hands  of  the  administrator  or 
executor  is  subject  to  the  general  property  tax,  and 
penalties  are  imposed  on  such  officer  personally  for 
delinquency.  The  administrator  or  executor  is  also 
liable  for  back  taxes  unpaid  during  the  life  of  decedent. 

In  the  case  of  a  legacy  to  any  literary,  scientific,  or 
charitable  institution,  that  portion  of  the  estate  is 
exempt. 

IV.  Corporation  taxes. 

All  corporations  are  taxed  under  the  general  prop- 
erty tax. 

Foreign  insurance  companies  pay  a  tax  of  $3  on  each  $100  excess  of 
premiums  received  over  losses  paid  in  the  state.  (This  is  an  exception 
to  the  system  of  the  state.) 

In  addition  to  the  general  property  tax  domestic  corporations  are 
also  taxed  upon  the  excess  of  the  cash  value  of  their  capital  stock  over 
the  assessed  value  of  their  property. 

Foreign  bridge  companies  are  taxed  on  their  gross  earnings  as  on 
property. 

V.  Business  taxes  and  licenses. 

Collected  by  county  treasurer  mainly  for  the  benefit  of  state  school 
fund. — To  keep  a  ferry,  $3  to  $50;  in  each  county  from  traveling 


TAXATION  AND  REVENUE  SYSTEMS— INDIANA. 


697 


merchants  and  peddlers  not  residents  and  selling  foreign  merchan- 
dise when  capital  is  not  over  $1,000,  $5;  capital  $1,000  to  $2,000,  $7.50; 
capital  $2,000  to  $5,000,  $10;  capital  over  $5,000,  $20.  (Peddlers  of 
tea  and  coffee  are  exempt.)  Exhibitions  and  shows,  for  each  perform- 
ance, $5  to  $25.  (The  above  go  to  the  county  agricultural  society.) 
Brokers,  per  annum,  $100;  liquor  licenses,  $100.  The  secretary  of  state 
is  authorized  to  issue  a  license  to  sell  prison  made  goods,  per  annum, 
$500. 

B.    FEES. 

By  secretary  of  state. — Commission  of  notary,  $1 ;  commission  of 
commissioner  of  deeds,  $5;  seal,  50  cents ;  filing  charters,  200  words,  $1 ; 
articles  of  incorporation,  stock  $10,000  or  less,  $10;  stock  over  $10,000, 
one-tenth  of  1  per  cent ;  for  increase  of  stock,  same  fees.  Mutual  insurance 
companies'  charters,  $25;  religious  and  other  corporations'  charters,  $5; 
building  and  loan  associations,  stock  $50,000  or  less,  $10;  building  and 
loan  associations,  stock  over  $50,000,  one  twenty-fifth  of  1  per  cent; 
reduction  of  stock,  $5;  decree  of  court  changing  name  of  corporation, 
$5:  amendments  to  charter,  20  cents  per  100  words,  not  less  than  $5; 
filing  certificate  of  incorporation,  insurance  company,  $2;  insurance 
company,  for  live  stock  charter  $10. 

By  the  auditor. — Examination  of  statement  of  insurance  company,  $5; 
filing  statement  of  subscription,  live  stock  insurance  company,  $10. 

By  the  board  of  dental  examiners. — For  examination,  $20;  for  reex- 
amination, $10;  for  issuance  of  certificate  on  diploma,  $6;  for  license 
fee,  50  cents. 

By  the  board  of  pharmacy. — For  registration  and  certificate,  $2;  for 
examination,  $3;  for  registration,  $1;  for  assistants,  as  above,  $1,  $2, 
50  cents. 

By  the  medical  board. — For  applicants  with  diploma,  $10,  with 
license  fee  of  $1;  for  examination,  $25,  with  license  fee  of  50  cents. 

County  Revenues. 

a.   TAXES. 

I.  The  general  property  tax. 

1.  Base — 

The  property  subject  to  taxation  and  the  methods  of 
assessment  and  of  equalization  are  substantially  the 
same  for  county  as  for  state  taxation. 

2.  Rate— 

The  rate  is  determined  by  the  county  commissioners. 
There  are  various  limits,  the  most  general  one  being  33 
cents  per  $100  of  assessed  valuation,  but  extra  rates 
are  allowed  under  varying  circumstances. 

3.  Collection — 

Substantially  the  same  as  for  state  taxes. 

II.  Poll  tax. 

The  amount  to  be  charged  on  each  poll  for  county 
expenditures  is  determined  by  the  board  of  county 
commissioners. 
Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There  are  no  inheritance  taxes,  or  special  corpora- 
tion taxes  for  the  counties.     Licenses  levied  by  the 
county  authorities  accrue  to  the  state  school  fund. 
V.  Business  taxes  and  licenses. 

Counties  are  authorized  to  grant  a  number  of  licenses 
and  to  charge  therefor  the  following  fees: 


To  keep  a  ferry,  per  annum,  $2.50;  transient  merchants,  $10  to  $25 
a  day,  according  to  size  of  the  largest  city  in  the  county  for  which  the 
license  is  granted;  foot  peddlers,  per  annum,  $25;  wagon  peddlers,  per 
annum,  $50.  Soldiers  and  sailors  are  given  licenses  for  the  payment  of 
a  fee.  The  foregoing  license  fees  are  paid  to  the  school  fund.  Expo- 
sitions and  shows,  for  each  performance,  $5  to  $25.  The  above  goes 
to  the  county  or  district  agricultural  association  fund.  To  keep  a 
stallion,  per  annum,  50  cents.     Liquor  license,  $100. 

Municipal  Revenues. 

a.   TAXES. 

I.  The  general  property  tax. 

1.  Base — 

The  property  included  and  the  method  of  assessment 
and  of  equalization  are  substantially  the  same  for 
municipal  purposes  as  for  state  and  county. 

2.  Rate— 

The  rate  is  determined  by  municipal  legislative 
authorities.  For  general  municipal  purposes  in  cities 
the  maximum  rate  is  90  cents  on  $100.  For  school 
districts  the  maximum  rate  is  22  cents  on  $100.  But 
many  special  rates  are  allowed,  and  the  rates  vary 
in  different  classes  of  cities. 

3.  Collection — 

Municipal  taxes  are  collected  by  the  county  treas- 
urer in  substantially  the  same  manner  as  state  and 
county  taxes. 

II.  Poll  tax. 

a.  General. — Cities  may  levy  a  poll  tax  at  not  to 
exceed  50  cents. 

b.  Road. — Able-bodied  men  between  21  and  50  years 
of  age  may  be  called  upon  for  from  two  to  four  days' 
labor  in  April.  The  labor  tax  may  be  commuted  for 
$1.25  per  day. 

Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There    are    no    inheritance    or   special    corporation 
taxes  for  municipalities. 
V.  Business  taxes  and  licenses. 

Cities  and  towns  may  license  pawnbrokers,  per  annum,  $10  to  $100; 
merchants  and  peddlers,  same  rate  as  county,  and  in  addition  thereto; 
liquor  license,  in  addition  to  county  license — cities,  $250;  incorporated 
towns,  $150. 

■  School  Revenues. 

State  tax,  16  cents  per  $100  of  assessed  valuation 
and  50  cents  on  polls. 

Township,  town,  and  city  special  tax  for  equipment, 
not  to  exceed  50  cents  per  $100  of  assessed  valuation; 
local  tax  for  tuition,  not  to  exceed  25  cents;  and 
special  tax  to  pay  debts,  not  to  exceed  25  cents. 

The  proceeds  of  the  sale  of  public  lands  form  a 
permanent  school  fund,  the  interest  only  being  paid 
to  the  current  school  fund. 


698 


WEALTH,  DEBT,  AND  TAXATION. 


IOWA.1 


Iowa  depends  almost  entirely  upon  the  general 
property  tax  for  state,  county,  and  municipal  reve- 
nues. There  is  an  inheritance  tax,  but  no  special  cor- 
poration taxes,  except  on  foreign  insurance  compa- 
nies. Corporations  generally  are  assessed  by  local 
assessors.  A  few  are  assessed  on  their  property  by 
the  state  executive  council.  Changes  of  late  years 
have  been  from  taxes  on  gross  revenue  to  those  on 
property. 

CONSTITUTIONAL    PROVISIONS. 
ARTICLE  in. 

Sec.  30.  The  general  assembly  shall  not  pass  local  or  special  laws  in 
the  following  cases: 

For  the  assessment  and  collection  of  taxes  for  state,  county,  or  road 
purposes. 

ARTICLE   VIII. 

Sec.  2.  The  property  of  all  corporations  for  pecuniary  profit  shall  be 
subject  to  taxation  the  same  as  that  of  individuals. 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  The  township  and  city  assessors,  elected  biennially,  one  in  each 
township  and  city. 

(2)  The  township  trustees  and  city  councils,  which  act  as  boards  of 
review. 

(3)  The  county  boards  of  supervisors,  which  act  as  county  boards  of 
review  and  equalization. 

(4)  The  state  executive  council,  composed  of  the  governor,  secretary, 
auditor,  and  treasurer  of  state,  which  constitutes  the  state  board  of 
review,  and  acts  as  a  state  board  of  equalization,  and  also  as  an 
assessment  board  for  certain  classes  of  property. 

(5)  The  county  treasurers,  who  are  the  tax  collectors. 

State  Revenues. 

a.   TAXES. 

I.    The  general  property  tax. 
1.  Base — 
a.   The  property  included  and  exempt. — All  real  and 
personal  property  not  specially  exempt  is  subject  to 
this  tax. 

(1)  and  (2)  There  are  no  special  definitions  of  real  and  personal 
property  for  purposes  of  taxation.  Ferry  franchises  and  toll  bridges 
are  defined  as  real  estate. 

Mortgages  are  taxable,  and  no  deduction  is  allowed  on  that  account 
from  the  assessed  value  of  the  land. 

Credits,  moneys,  annuities,  bank  notes,  and  shares  of  stock  incorpora- 
tions are  all  taxable. 

Debts  may  be  deducted  from  the  total  of  moneys  and  credits. 
•    (3)  The  exemptions,  in  addition  to  public  property,  are:  Cemeteries: 
crematoriums;  fire  engines,  etc.,  with  houses  and  grounds;  grounds  and 
buildings  for  public  libraries,  for  literary,  scientific,  charitable,  benevo- 


1  This  compilation  is  derived  mainly  from  the  following  sources: 
The  Annotated  Code  of  Iowa,  1897. 

The  Revenue  Laws  of  the  State  of  Iowa,  compiled  by  Frank  F.  Mer- 
riam,  auditor  of  state,  1901. 

The  Supplement  to  the  Code  of  Iowa,  1902. 


lent,  agricultural,  and  religious  institutions  and  societies,  not  exceeding 
160  acres;  personal  property  and  investments  of  such  institutions;  farm 
produce  and  wool  of  the  harvest  or  shearing  of  previous  year ;  all  poultry, 
10  stands  of  bees,  all  swrine  and  sheep  under  6  months  of  age  and  all 
other  domestic  animals  under  1  year;  private  libraries  and  professional 
libraries  up  to  $300;  family  pictures;  household  furniture  to  $300,  and 
kitchen  furniture;  beds  and  bedding;  all  wearing  apparel  in  use:  all 
food  provided  for  the  family:  estates  of  persons  who,  by  reason  of  age 
or  infirmity,  are  unable  to  contribute;  farming  utensils,  the  team, 
wagon,  and  harness  of  teamsters  and  draymen,  and  the  tools  of  a  me- 
chanic, all  up  to  $300;  Government  land  entered  and  purchased,  for  one 
year;  the  homestead  up  to  $800  of  the  widow  of  any  Union  soldier  or 
sailor,  also  of  any  honorably  discharged  Union  soldier  or  sailor  unabie 
to  perform  labor  and  dependent.  In  the  assessment  of  farm  lands  a 
reduction  that  is  called  an  exemption  is  made  from  the  valuation  of 
the  farms  equal  and  proportionate  to  the  area  of  roads  adjacent  to 
such  lands.     (Modified  in  1904.) 

Until  1910  sugar  mills,  with  machinery,  tools,  and  appliances,  and  not 
to  exceed  10  acres  of  land,  aie  to  be  exempt. 

b.  Assessment.  Every  person  of  full  age  and  sound 
mind  is  required  to  furnish  the  assessor  with  a  sworn 
statement  of  the  property  owned  by  him  on  the  1st 
day  of  January.  Refusal  to  furnish  such  a  statement 
results  in  double  assessment,  while  making  a  false 
statement  is  punishable  as  perjury.  Valuations  are 
fixed  by  the- assessor  at  the  actual  cash  value,  and  the 
assessment  is  at  25  per  cent  of  such  value.  The 
assessment  rolls  are  to  be  completed  by  the  assessor 
by  April  1 . 

Real  estate  is  assessed  only  once  every  two  years. 
Moneys,  credits,  etc.,  in  general,  are  assessed  where 
the  owner  resides. 

Merchants  and  manufacturers  are  assessed  upon  the  average  amount 
of  stock  held  during  the  year. 

When  corporations  are  taxed  on  their  property,  the  shares  of  stock 
are  exempt.  Shares  of  stock  in  national  banks  are  assessed  to  the 
shareholders  where  the  bank  is  located.  Shares  of  stock  in  state  and 
savings  banks  are  assessed  to  the  banks.  Bank  stock  is  assessed  on 
the  basis  of  capital,  surplus,  and  undivided  profits,  less  the  value  of 
real  estate,  which  is  assessed  separately.  Shares  of  stock  in  corpora- 
tions generally  are  assessed  to  the  corporations,  less  the  value  of  real 
estate. 

The  following  items  are  assessed  by  the  executive  council : 

Telegraph  and  telephone  companies,  by  the  unit;rule;  the  assessment 
so  made  is  apportioned  on  a  basis  of  mileage  and  taxed  as  other  property. 

Railroads — the  right  of  way,  roadbed,  bridges,  culverts,  rolling  stock, 
depots,  station  grounds,  shops,  buildings,  gravel  beds,  and  all  other 
property  exclusively  used  in  the  operation  and  maintenance  of  the 
railway;  but  not  lands  outside,  nor  the  railway  bridges  across  the  Missis- 
sippi and  Missouri  rivers,  nor  grain  elevators,  which  are  assessed  by  the 
local  assessors.  In  assessing  such  property  the  council  takes  into  con- 
sideration the  gross  earnings,  etc.,  and  proceeds  generally  upon  the  unit 
rule.  The  assessment  so  made  is  apportioned  among  the  counties  on  a 
mileage  basis. 

Railways  report  also  the  numl>er  of  cars  run  by  them  but  ln'longing 
to  other  companies,  and  these  are  similarly  assessed  by  the  executive 
council. 

Express  companies  are  assessed  upon  their  property,  including  their 
shares  of  stock,  by  a  unit  rule,  and  this  assessment  is  apportioned 
among  the  counties  and  townships  on  a  mileage  basis. 

c.  Equalization. — The  township  trustees  act  as  a 
local  board  of  review  and  adjust  assessments  between 


TAXATION  AND  REVENUE  SYSTEMS— IOWA. 


699 


individuals;  they  also  hear  appeals.  Appeals  from 
their  decisions  lie  to  the  district  court. 

The  board  of  supervisors  of  each  county  constitutes 
a  county  board  of  review  and  adjusts  the  assessments 
between  the  several  townships,  cities,  and  towns  of  the 
county. 

The  executive  council  acts  as  state  board  of  review 
and  equalizes  the  assessments  between  the  several 
counties,  adding  to  or  deducting  from  the  valuation  of 
each  kind  or  class  of  property,  so  as  to  make  the  assess- 
ments equal. 

2.  Rate— 

The  general  assembh-  fixes  the  total  amount  to  be 
raised  for  state  purposes.  The  executive  council 
annually  determines  +he  rate  per  cent  on  the  valuation 
of  the  taxable  property  necessary  to  raise  the  amount 
fixed  by  the  general  assembly. 

3.  Collection — 

Taxes  are  collected  by  the  county  treasurers,  and  are 
payable  at  any  time  between  the  first  Monday  in  Janu- 
ary and  the  1st  day  of  March;  or  one-half  may  be  paid 
before  March  and  the  remaining  half  before  the  1st  day 
of  September.  If  at  least  half  is  not  paid  before  the 
1st  day  of  April,  the  whole  amount  becomes  delinquent 
as  of  March  1 .  In  case  the  second  installment  is  not 
paid  before  the  1st  day  of  October,  it  becomes  delin- 
quent as  of  the  1st  day  of  September.  Delinquent 
taxes  draw  interest  at  1  per  cent  a  month. 

Taxes  are  a  lien  on  the  property  on  which  they  are 
levied,  and  may  be  collected  by  distress  and  sale. 

II.  Poll  tax. 

There  is  no  state  poll  tax. 

III.  Inheritance  tax. 

All  property  passing  by  will  or  inheritance,  or  by  gift 
intended  to  take  effect  after  death,  except  to  the  father, 
mother,  husband,  wife,  lineal  descendant,  adopted 
child,  or  to  charitable,  educational,  or  religious  socie- 
ties or  institutions,  is  subject  to  a  tax  of  5  per  cent  on 
estates  of  $1,000  or  more;  in  1904,  if  inherited  by 
brothers  and  sisters  who  are  aliens.  10  per  cent;  by 
other  aliens,  20  per  cent. 

The  tax  is  paid  to  the  state  treasurer  by  the  execu- 
tors, etc. 

IV.  Corporation  taxes. 

In  general,  corporations  are  taxed  under  the  general 
property  tax,  but  a  few  are  assessed  by  a  state  board  on 
part  of  their  property.  The  following,  however,  are 
differently  taxed: 

Insurance  companies,  other  than  fraternal,  beneficiary,  and  county 
mutual  companies,  are  taxed  upon  their  annual  gross  receipts  at  the  fol- 
lowing rates:  Foreign  companies  incorporated  or  owned  outside  of  the 
United  States,  3J  per  cent  (since  1902,  2 J  per  cent);  foreign  companies, 
United  States,  2J  per  cent.  Domestic  insurance  companies  are  taxed  on 
their  property  as  other  corporations.  (In  1900  a  law  imposing  a  1  per  cent 
tax  on  premiums  was  repealed  and  in  1902  reenacted  with  rate  of  \\  per 
cent). 

V.  Business  taxes  and  licenses. 

The  state  derives  no  revenue  from  licenses  for  the 
sale  or  manufacture  of  intoxicating  liquors,  or  from 


the  "mulct  tax"  on  such  sale  or  manufacture.     (See 
also  County  revenues.) 

Itinerant  physicians,  $250  per  annum;  itinerant  vendors  of  drugs, 
$100  per  annum. 

B.    FEES. 

By  state  board  of  medical  examiners. — For  examination,  $20:  for  cer- 
tificate on  diploma,  $5. 

By  state  board  of  pharmacy. — Forexamination,  $5;  for  certificate,  $2; 
for  renewal  of  certificate,  $1. 

By  state  board  of  dentistry. — For  examination,  $10;  for  certificate,  $2; 
for  renewal,  $1. 

By  the  secretary  of  state. — For  articles  of  incorporation,  $25,  and  on 
each  $1,000  over  $10,000  capital,  $1;  increase  of  capital  stock  per 
$1 ,000,  $1 ,  no  fee  to  exceed  $350.  (The  same  fees  are  required  of  foreign 
corporations.) 

By  the  auditor  of  state,  from  insurance  companies. — For  filing  appli- 
cation, etc.,  domestic  companies,  $10,  foreign  companies,  $25;  for  per- 
mission to  foreign  companies,  $2;  for  filing  annual  statement,  etc., 
domestic  companies,  $3,  foreign  companies,  $20;  for  certificate  of 
authority  to  agent,  domestic  companies,  50  cents,  foreign  companies,  $2. 

County  Revenues. 

a.   TAXES. 

I.  The  general  property  tax. 

1.  Base — 

The  property  included  and  the  method  of  assessment 
and  of  equalization  are  substantially  the  same  for 
county  as  for  state  taxation. 

2.  Rate— 

The  rates  for  various  purposes  are  determined  by  the 
county  board  of  supervisors.  The  levy  may,  in  some 
instances,  be  submitted  to  a  popular  vote. 

3.  Collection — 

County  taxes  are  collected  in  substantially  the  same 
manner  as  are  state  taxes.  < 

II,  III,  and  IV.  Poll  tax,  inheritance  tax,  and  corpora- 

tion taxes. 

There  are  no  county  poll,  inheritance,  or  special  cor- 
poration taxes. 
V.  Business  taxes  and  licenses. 

The  constitution  forbids  the  issue  of  licenses  for  the 
sale  or  manufacture  of  intoxicating  liquors  in  the  state. 
Such  manufacture  or  sale  is  regulated  under  what  is 
known  as  the  "mulct  tax  "  law,  by  the  terms  of  which 
$600  are  annually  collected  in  installments  from  all 
dealers  in  intoxicating  liquors.  The  receipts  are 
apportioned  equally  between  the  county  and  munici- 
pality within  which  the  place  of  business  is  located. 

Peddlers  outside  of  a  city,  $1  to  $50;  circuses  and  traveling  shows,  for 
each  place,  not  to  exceed  $100. 

Municipal  Revenues. 

a.   TAXES. 

I.    The  general  property  tax. 
1.  Base — 
The  property  included  and  the  method  of  equaliza- 
tion are  the  same  as  for  state  and  county  taxes. 


700 


WKALTH,  DEBT,  AND  TAXATION. 


Cities  me  assessment,  areas  excluded  from  the  town- 
shij>  mid  county  assessment  areas,  but  are,  practi- 
cally, districts  coordinate  with  townships.  They  pro- 
vide their  own  assessors,  whose  duties  are  substantially 
the  same  as  those  of  township  assessors,  and  may  or 
may  not  use  I  lie  assessment,  employed  for  state  and 
counts   taxation. 

•>.  Bate— 

Fixed  by  the  cit  \  council. 

.'{.    Collection 
Municipal  taxes  are  collected  by  the  county  treas- 
urer. 

II.  Poll  tax. 

Cities  and  towns  have  power  to  provide  that  all 
able-bodied  nude  residents  bet  ween  the  ages  of  21  and 
to  years  shall,  by  themselves  or  by  substitutes,  per- 
form two  days'  labor  of  eight  hours  each  upon  the 
streets,  avenues,  alleys,  highways,  or  public  grounds, 
OOmmutable  at  not  over  $1.50  per  day.  For  failure 
cither  to  perforin  the  work  or  to  make  such  commuta- 
tion payment,  •  penalty  not    to  exceed  $2  per  day,  or 

$t,  may  be  required. 

In  road  districts  the  supervisor  is  to  require  two 
days'  labor  on  the  roads  of  all  able-bodied  males 
between  21  and  15  years  of  age.  The  penalty  for 
failure  to  work  is  $11  per  day. 


Members  of  the  Iowa  National  Guard  and  of  fire 
companies  are  exempt  from  these  taxes. 
Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

Municipalities  do  not  participate  in  the  inheritance 
tax  and  have  no  special  taxes  on  corporations. 

V.  Business  taxes  and  licenses. 

(See  under  County  revenues  for  provisions  relating 
to  tax  on  the  sale  of  intoxicating  liquors.) 

Cities  generally  have  power  to  license  and  tax 
hotels,  restaurants,  and  eating  houses,  auctioneers, 
peddlers,  plumbers,  billposters,  itinerant  doctors, 
junk  dealers,  scavengers,  pawnbrokers,  billiard  saloons, 
billiard  and  pool  tables,  bowling  alleys  and  shooting 
galleries,  circuses,  menageries,  theaters,  and  shows. 

School  Revenues. 

The  state  school  funds  are  derived  from  two  sources: 

The  permanent  fund  from  proceeds  of  sale  of  lands, 
etc.,  of  which  only  the  interest  is  used. 

The  temporary  fund  from  forfeitures,  fines,  escheats, 
and  est  rays. 

The  county  supports  the  high  schools  by  a  maximum 
tax  levy  of  5  mills;  for  current  expenses  only,  2  mills. 

The  remainder  of  the  school  revenues  are  raised  by 
the  school  districts.  The  amount  to  be  raised  is 
determined  by  the  school  board,  or  by  vote  of  the 
district,  and  levied  by  the  county  supervisors. 


KANSAS.' 


Kansas  depends  almost  entirely  upon  the  general 
property  tax  for  state,  county,  and  municipal  reve- 
nues. The  poll  tax  is  for  local  road  purposes  only. 
There  are  no  inheritance  or  special  corporation  taxes, 
ezoept  on  insurance  companies.  Railroad,  telegraph, 
and  telephone  companies  are  the  only  corporations 
assessed  by  a  state  board. 

tONslll'l    IIONAI.    PROVISIONS. 
ARTICLE   XI. 

Sm-.  I.  Tlio  legislature  slmll  provide  for  n  uniform  «iul  equal  rate 
of  assessment  niiil  taxation;  tmt  all  property  OMd  exclusively  for  state, 
count y.iminieipal,  literary,  educational,  scientific,  religious,  benevolent. 
and  charitable  purposes,  and  (HU-sonal  property  to  the  amount  of  at 
least  two  hundred  dollars  for  each  family,  slmll  U>  exempted  from 
I  ii  \ai  ion. 

Sm  -.  Hie  legislature  shall  provide  for  taxing  the  notes  and  hills 
discounted  or  purchased,  moneys  loaned,  and  oilier  property.  elTects. 
or  dues  of  every  description  (without  deduction^,  of  all  Iwnks  now 
cxisiing,  or  hereafter  to  lx>  created,  and  of  all  hankers;  so  that  all  prop- 
erty employed  ill  tanking  shall  always  l>oar  a  hurdeti  of  taxation  opinl 
to  that  imposed  upon  the  propertj  of  individuals. 

Sk«  3  .  \s  amended  in  1ST .VI  The  legislature  slmll  provide,  at  each 
regular  session,  for  raising  sutlicieni  revenue  to  defray  the  current 
expenses  of  the  state  for  two  years, 

^aC  I  No  lax  shall  W  lc\  icd  except  in  pursuance  of  a  law  which 
shall  distinctly  state  the  object  of  the  same:  to  which  object  only  such 
l.'iv  slmll  U>  applied. 

Siv  ,V  ^Provides  for  public  debts  and  an  annual  tax  to  pay  the 
interest  and  principal.  ~> 

1  This  compilation  is  derived  niainlv  from  the  lieneral  Statutes  of 
Kansas.  HUM.  In  0,  F.  \Y.  IVssler:  Topek*.  Kans  .  1'Ml. 


ARTICLE    VI. 


Sec.  3.  The  proceeds  of  all  lands  that  have  been,  or  may  be,  granted 
by  the  United  States  to  the  state,  for  the  support  of  schools,  and  the 
five  bundled  thousand  acres  of  land  granted  to  the  new  states,  under 
an  act  of  Congress  distributing  the  proceeds  of  public  lands  among  the 
several  stales  of  the  Union,  approved  September  4,  A.  D.  1841,  and  all 
estates  of  persons  dying  without  heir  or  will,  and  such  per  cent  as  may 
be  granted  by  Congress,  on  the  sale  of  lands  in  this  state,  shall  be  the 
common  property  of  the  state,  and  shall  be  a  perpetual  school  fund, 
which  shall  not  1h>  diminished,  but  the  interest  of  which,  together  with 
all  the  rents  of  the  lands,  and  such  other  means  as  the  legislature  may 
provide,  by  tax  or  otherwise,  slmll  In'  inviolably  appropriated  to  the 
support  of  common  schools. 

Sec.  7.  (Fixes  the  university  fund.) 

ARTICLE   IX. 

Sac.  3.  (Fixes  the  term  of  county  officers  at  two  years,  except  county 
commissioners,  three  years.) 

Sec.  4.   (Fixes  the  term  of  township  officers  at  one  year.) 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  The  trustee  of  each  township,  elected  for  one  year,  now  elected 
biennially,  who  acts  as  assessor  for  the  township. 

J     The  city  assessor,  appointed  annually  by  the  mayor  and  common 
council  of  all  cities  of  the  first  and  second  classes. 

(3)  The  county  clerk,  elected  for  two  years,  who  acts  as  county 
auditor  and  makes  up  the  assessment  roll  for  the  county. 

(4)  The  county  board  of  equalization,  composed  of  the  board  of 
county  commissioners. 

(5)  The  state  auditor. 


TAXATION  AND  REVENUE  SYSTEMS— KANSAS.' 


701 


(6)  The  state  board  of  equalization,  composed  of  the  secretary  of 
state,  state  auditor,  and  state  treasurer. 

(7)  The  state  board  of  railroad  assessors,  composed  of  the  auditor 
of  the  state,  lieutenant  governor,  secretary  of  state,  attorney-general, 
and  state  treasurer. 

State  Revenues. 

A.    TAXES. 

I.    The  general  propt  rty  tax. 
1.  Base — 

a.  Tin  property  included  and  exempt. — All  property 
in  the  state,  real  and  personal,  not  expressly  exempt, 
is  subject  to  taxation. 

(1)  "  Re^il  property,"'  besides  the  land  and  improvements,  includes 
mines,  minerals,  quarries,  mineral  springs,  and  wells,  rights  and  privi- 
leges appertaining  thereto;  but  certain  real  estate  of  railroads  is  treated 
as  personal  property.     (See  next  paragraph.) 

(2)  "  Personal  property  "  includes  every  tangible  thing  subject  to  own- 
ership not  forming  part  of  real  estate;  also  all  tax  sale  certificates, 
judgments,  notes,  bonds  and  mortgages,  and  all  evidences  of  debt 
secured  by  lien  on  real  estate;  also  the  capital  stock,  undivided  profits, 
and  all  other  assets  of  every  company,  incorporated  or  unincorporated, 
and  every  share  or  interest  in  such  stock,  profit,  or  assets,  provided  the 
same  is  not  included  in  other  personal  property  subject  to  taxation  or 
listed  as  the  property  of  individuals;  and  also  every  share  or  interest 
in  any  vessel  or  boat  used  in  navigating  any  of  the  waters  within  or 
bordering  on  this  state,  whether  such  vessel  or  boat  shall  be  within  the 
jurisdiction  of  the  state  or  elsewhere;  and  also  all  "property"  owned, 
leased,  used,  occupied,  or  employed  by  any  railway  or  telegraph  com- 
pany or  corporation  within  the  state,  situate  on  the  right  of  way  of  any 
railway. 

(3)  Exemptions  include,  in  addition  to  all  public  property  (except 
land  bid  off  for  counties  or  cities  at  tax  sales);  churches;  parsonages; 
public  schools;  cemeteries;  scientific,  literary,  and  benevolent  associa- 
tions: the  moneys  and  credits  of  universities,  colleges,  academies,  or 
public  schools;  fire  apparatus  and  buildings  therefor;  personal  property 
to  the  extent  of  $200  for  each  family;  wearing  apparel ;  public  libraries; 
family  libraries  and  school  books  up  to  $50;  the  meeting  hall  of  any 
post  of  the  Grand  Army  of  the  Republic;  money  or  other  benefits  of 
fraternal  beneficiary  societies;  and  the  uniforms  of  officers  and  soldiers 
of  the  Kansas  National  Guard. 

b.  Assessment. — There  is  but  one  assessment  for 
state,  county,  and  municipal  purposes,  but  the  state 
and  county  roll  after  equalization  may  differ  from  the 
municipal  roll.  The  assessment  is  begun  by  the  local 
assessors  and  completed  or  assembled  by  the  county 
clerk  and  refers  to  the  1st  day  of  March.  Real  prop- 
erty and  improvements  are  assessed  together  in  the 
even  years,  except  for  changes  in  improvements  which 
are  entered  annually  and  except  also  that  cities  of 
the  first  and  second  classes  may  order  an  annual 
assessment  of  real  estate.  Personal  property  is 
assessed  annually,  and  all  property,  except  enumer- 
ated classes  which  might  thus  escape  taxation,  is 
assessed  in  the  township  where  it  has  its  natural  or  its 
legal  situs. 

Every  person  of  full  age  and  sound  mind  is  required 
to  furnish  the  assessor  a  sworn  list  of  his  property 
including  the  value,  which,  however,  is  nbt  binding  in 
any  way  on  the  assessor,  who  is  to  determine  the  true 
value  in  money  from  actual  view  and  inspection  of  the 
property. 


Refusal  or  failure  to  submit  a  sworn  list  subjects 
the  taxpayer  to  a  penalty  of  an  increase  of  50  per  cent, 
to  be  made  by  the  county  clerk  on  the  valuation  as 
returned  by  the  assessor.  Submitting  a  false  state- 
ment constitutes  a  misdemeanor,  punishable  by  a  fine 
not  to  exceed  $50  and  imprisonment  not  to  exceed 
ninety  days,  or  both.  In  case  of  railroads  the  penalty 
is  $1,000;  in  that  of  telegraph  and  telephone  com- 
panies, it  is  $500  and  $100  per  day  after  March  20. 

Corporations  in  general  are  assessed  as  are  natural  persons,  except 
railroad,  telegraph,  and  telephone  companies,  which  are  assessed  by  a 
state  hoard. 

Railroads,  including  car  companies,  are  assessed  by  the  state  board 
of  appraisers  and  assessors  on  the  basis  of  a  detailed  statement  as  to 
amount,  kind,  and  value  of  property,  furnished  by  the  companies, 
and  the  assessment  so  made  is  apportioned  to  the  counties,  cities,  and 
townships  through  which  the  roads  run,  on  an  average  valuation  per 
mile.  This  assessment  covers  only  property  necessarily  used  in  con- 
nection with  the  road,  other  property  being  assessed  by  the  local 
assessors. 

Telegraph  and  telephone  companies  are  assessed  by  the  same  board, 
and  their  valuation  is  apportioned  among  the  counties  only  on  the 
basis  of  mileage. 

Banks  are  nominally  assessed  upon  their  real  estate  only,  the  shares 
being  assessed  in  the  name  of  the  stockholders,  but  the  bank  must 
pay  the  taxes  on  the  shares 

The  shares  of  stock  in  corporations  assessed  upon  their  capital  or 
property  are  not  assessed  to  the  shareholders. 

Private  bankers  and  building  and  loan  associations  are  assessed  on 
the  monthly  average  of  their  capital  and  undivided  profits. 

Kansas  insurance  companies  are  assessed  upon  their  property  as 
other  corporations,  but  other  insurance  companies  pay  a  corporation  tax. 

Mortgages  are  assessed  as  other  property. 

Merchants  and  manufacturers  are  assessed  upon  their  average 
monthly  holdings  during  the  year  and  are  required  to  declare  values 
only. 

Debts  owing  in  good  faith  may  be  deducted  from  gross  amount  of 
credits. 

c.  Equalization. — The  state  board  of  equalization 
equalizes  the  assessment  as  between  the  different 
counties,  by  adding  to  or  deducting  from  the  assessment 
in  each  county  such  a  percentage  as  may  be  required, 
but  it  may  not  reduce  the  aggregate  for  the  state. 

2.  Rate— 

The  state  board  of  equalization  fixes  the  rate  for 
state  purposes  and  apportions  among  the  several 
counties  the  amount  which  each  is  required,  by  law, 
to  raise. 

3.  Collection — 

Taxes  for  state  purposes,  as  well  as  township  and 
county  taxes,  are  collected  by  the  county  treasurers. 
Taxes  become  a  lien  on  the  property  on  November  1  in 
each  year.  They  may  be  paid  in  two  installments, 
one-half  on  or  before  December  20  and  one-half  on  or 
before  June  20,  but  if  the  first  installment  is  not  paid 
when  due,  the  whole  tax  becomes  delinquent  and  may 
be  collected  at  once,  together  with  a  penalty  of  5  per 
cent  on  the  first  installment.  All  taxes  delinquent 
after  June  20  involve  an  additional  penalty  of  5  per 
cent,  but  if  a  taxpayer  pays  both  installments  in 
December,  he  receives  a  rebate  of  5  per  cent  on  the 


702 


WEALTH,  DEBT,  AND  TAXATION. 


second   installment.     Delinquent   taxes  are  collected 
by  the  sheriff  by  seizure  and  sale  of  property. 
II  and  III.  Poll  tax  and  inheritance  tax. 

There  are  no  state  poll  or  inheritance  taxes. 
IV. .  Corporation  taxes. 

There  are  no  corporation  taxes  other  than  the  general 
property  tax  except  the  local  tax  on  insurance  com- 
panies. 

Mutual  life  insurance  companies  pay  through  the  state  superintendent 
of  insurance  a  license  of  $100  per  annum.  All  insurance  companies  pay 
$55  for  a  certificate  of  authority;  $50  annually  for  filing  annual  state- 
ments, and  $2  for  each  license  granted  an  agent.  Life  insurance 
companies,  not  organized  under  the  laws  of  the  state,  pay  1  cent 
per  thousand  insured  for  valuation  of  policies.  All  expenses  of  the 
insurance  department  over  and  above  fees  received  are  assessed  on 
companies  doing  business  in  the  state.  Every  insurance  company, 
domestic  or  foreign,  pays  $50  per  annum  to  the  school  fund.  There 
is  also  a  retaliatory  tax  on  companies  of  states  which  tax  Kansas 
companies  more  heavily  than  Kansas  does  such  insurance  companies. 

B.    FEES. 

For  examination  by  the  bank  commissioners  banks  are  obliged  to 
pay  a  fee  graduated  according  to  their  capital. 

Corporations,  when  receiving  charters  or  authority  to  do  business  in 
Kansas,  pay  a  charter  fee  to  the  state  treasurer  for  the  benefit  of  the 
state  school  fund — rates,  one-tenth  of  1  per  cent  on  the  first  $100,000 
of  capital  stock,  one-twentieth  of  1  per  cent  on  the  next  $400,000, 
$200  for  each  $1,000,000  or  fraction  thereof  over  $500,000;  also  fees 
for  filing  papers,  etc. 

County  Revenues. 

A.    TAXES. 

I.    The  general  property  tax. 

1.  Base — 

a  and  b.  The  property  included  and  exempt,  and  the 
assessment. — The  property  included  and  the  method  of 
assessment  are  the  same  for  the  county  as  for  the  state. 

c.  Equalization. — The  county  board  of  equalization 
equalizes  the  assessments  of  all  the  taxpayers  of  the 
county  so  as  to  make  such  assessments  conform  to  the 
true  money  value  of  their  property. 

2.  Rate— 

The  county  commissioners  determine  the  amount  of 
money  to  be  raised  for  county  purposes,  and  the  county 
clerk  computes  the  rate  on  each  $100  of  assessed  valua- 
tion necessary  to  raise  the  amount,  subject,  however, 
to  the  following  limitations: 

In  counties  where  assessed  valuation  is  $5,000,000  or  less,  not  more 
than  1  per  cent;  over  $5,000,000  but  not  over  $6,000,000,  not  more 
than  8J  mills;  over  $6,000,000  but  not  over  $7,000,000,  not  more  than 
7 J  mills;  over  $7,000,000  but  not  over  $8,000,000,  not  more  than  6J 
mills;  over  $8,000,000  but  not  over  $9,000,000,  not  more  than  5? 
mills;  over  $9,000,000,  not  more  than  J  per  cent. 

These  rates  may  be  exceeded  when  so  voted  by  the 
people. 

3.  Collection — 

County  taxes  are  collected,  as  are  state  and  township 
taxes,  by  the  county  treasurer. 


II,  III,  and  IV.  Poll  tax,  inheritance  tax,  and  corpora- 
tion taxes. 
The  counties  levy  no  poll  tax,  there  is  no  inheritance 
tax,  and  they  receive  no  part  directly  of  the  special 
corporation  taxes  which  are  assessed  against  insurance 
companies. 
V.  Business  taxes  and  licenses. 

Ferry  license  rates  may  be  fixed  by  county  commisaione.  s,  $10  to 
$.500. 

Druggists  who  sell  spirits  for  medical,  scientific,  or  mechanical  pur- 
poses pay  an  annual  fee  of  $5. 

Municipal  Revenues, 
a.    TAXES. 

I.  The  general  property  tax. 

1.  Base — 

The  property  included  and  the  assessment  and  equali- 
zation are  practically  the  same  as  for  state  and  county 
purposes.  Local  taxes  are  levied  on  the  assessment  roll 
as  equalized  by  the  county  board  without  necessarily 
being  corrected  for  state  equalization.  The  property 
of  telegraph  and  telephone  companies,  except  their 
local  real  estate,  is  not  apportioned  below  the  counties, 
as  there  is  no  municipal  tax  on  such  companies. 

2.  Rate— 

The  rate  expressed  as  a  percentage,  or  in  mills  on  the 
dollar,  is  fixed  by  the  mayor  and  councilmen  in  cities, 
by  the  trustees  in  townships  (with  the  concurrence  of 
the  county  commissioners),  or  in  cities  which  consti- 
tute school  districts  and  in  school  districts,  by  the 
boards  of  education  and  school  boards. 

In  cities  of  the  first  class  the  rate  is  not  to  exceed  6  mills  on  the 
dollar  for  the  general  fund;  6  mills  for  general  improvements,  except- 
ing improvements  for  which  special  assessments  are  levied  (debt 
charges  are  not  included  in  these  limits);  nor  for  all  taxes  together, 
exclusive  of  school,  waterworks,  sewer,  and  special  improvement  taxes, 
2  per  cent.     A  tax  not  to  exceed  2  mills  may  be  levied  for  water  supply. 

In  cities  of  the  second  class  the  rate  for  general  revenue  may  not 
exceed  10  mills  on  the  dollar;  for  general  improvements,  5  mills;  nor 
for  all  taxes  together,  exclusive  of  school  taxes,  4  per  cent. 

In  cities  of  the  third  class  the  rate  limits  are  the  same  as  for  the 
second  class,  except  that  for  general  improvements,  which  is  10  mills, 
and  there  may  also  be  a  tax  not  to  exceed  3  mills  for  parks. 

For  school  purposes,  the  inhabitants  of  school  districts  may  vote  a 
tax  up  to  2  per  cent.  In  cities  of  class  1  under  30,000  inhabitants  the 
school  tax  may  not  exceed  8  mills;  over  30,000,  12  mills,  plus  3  mills 
for  buildings;  in  cities  of  class  2,  15  mills;  class  3,  2  per  cent. 

3.  Collection — 

Municipal  taxes  are  collected  by  the  county  treasurer. 

II.  Poll  tax. 

In  townships  all  males  21  to  45  years  of  age  who 
have  resided  in  the  state  thirty  days,  who  are  capable 
of  performing  labor  on  the  public  highways,  and  are 
not  a  township  charge,  are  liable  each  year  to  per- 
form two  days'  work  of  eight  hours  each  on  the  public 
roads,  under  the  direction  of  the  road  overseer  within 
whose  district  they  may  respectively  reside,  or  furnish 


TAXATION  AND  REVENUE  SYSTEMS— KENTUCKY. 


703 


a  substitute  to  do  the  same,  or  pay  the  sum  of  $1.15 
per  day  to  the  road  overseer. 

Cities  of  the  first  class  are  road  districts,  and  the 
same  provisions  apply  in  general  except  that  the  day 
is  ten  hours  and  the  tax  is  collected  by  the  street  com- 
missioners. 

Cities  of  the  second  and  third  classes  may  levy  a  poll 
tax,  not  exceeding  $1,  on  all  able-bodied  males  be- 
tween 21  and  50  years  of  age. 

III.  Inheritance  tax. 

There  is  no  inheritance  tax. 

IV.  Corporation  taxes. 

Municipalities  are  benefited  by  a  tax  on  fire  insurance  companies. 
Such  companies  organized  under  the  laws  of  other  States  of  the  United 
States  pay  2  per  cent  on  premiums  received  in  incorporated  cities  in 
Kansas,  which  maintain  a  regularly  organized  fire  department  under 
♦he  control  of  the  mayor  and  council  of  such  cities.  Fire  insurance 
companies  organized  under  the  laws  of  foreign  companies  pay  a  similar 
tax  of  4  per  cent.     This  tax  is  paid  to  the  superintendent  of  insurance, 


and  is  by  him  paid  to  the  firemen's  relief  associations  of  the  several 
cities  in  which  collected.  It  appears  among  the  receipts  from  business 
taxes  in  such  cities. 

V.  Business  taxes  and  licenses. 

In  cities  of  the  first  class  the  mayor  and  councilmen 
have  power  to  license  and  tax  "any  and  all  callings, 
trades,  professions,  and  occupations"  within  the  city 
limits.  There  is  a  long  list  of  specified  callings  and 
objects  which  may  be  licensed.  They  may  also  tax  the 
owners  and  harborers  of  dogs. 

In  cities  of  the  second  class  the  power  to  license  is 
limited  to  the  specified  callings,  the  list  being  prac- 
tically the  same  as  for  cities  of  the  first  class;  there  is 
also  a  dog  tax. 

In  cities  of  the  third  class  the  list  is  similar  but 
briefer;  these  cities  may  also  levy  the  dog  tax. 

Billiard  and  pool  tables  and  bowling  alleys  outside  the  cities  pay  not 
less  than  $50  to  the  townships. 


KENTUCKY.1 


Explanatory  notes. — The  revenue  laws  of  Kentucky  were  revised 
by  a  statute  which  went  into  effect  on  March  29,  1902.  The  census  year 
in  this  state  is  July  1, 1902,  to  June  30, 1903.  The  assessment  of  prop- 
erty is  made  as  of  September  15  in  each  year,  taxes  are  due  after  the  1st 
of  March  and  delinquent  after  the  1st  of  December.  The  larger  part  of 
the  property  taxes  collected  during  the  fiscal  year  1902-3  were  therefore 
from  the  assessment  made  in  September,  1901,  under  the  old  law. 
Licenses  and  certain  other  revenues  came  under  the  new  law. 

By  an  amendment  to'the  constitution,  adopted.in  November,  1903,  the 
legislature  was  authorized  to  enact  laws  permitting  all  cities  and  towns 
in  the  state  to  substitute  for  municipal  purposes  a  tax  based  on  income, 
licenses,  and  franchises  in  lieu  of  an  ad  valorem  tax  on  personal  property. 
The  legislature  passed  such  an  act  on  March  18,  1904. 

The  revenue  system  of  Kentucky  is  that  of  a  general 
property  tax  largely  supplemented  by  license  taxes. 
There  are  no  special  corporation  taxes  except  on  for- 
eign insurance  companies,  but  there  is  a  heavy  organi- 
zation tax  on  corporations,  and  the  special  franchises 
of  public  service  corporations  are  assessed  by  a  state 
board.     There  is  no  inheritance  tax. 

A  special  feature  of  the  Kentucky  system  is  that  the 
auditor  may  appoint  revenue  agents  in  each  county  to 
assess  property  omitted  from  the  rolls  and  to  bring  in 
taxes  which  would  otherwise  be  evaded.  They  receive 
a  commission  of  20  per  cent  on  all  taxes  they  collect. 

CONSTITUTIONAL    PROVISIONS. 

Sec.  59.  The  general  assembly  shall  not  pass  local  nor  special  acts  con- 
cerning any  of  the  following  subjects,  nor  for  any  of  the  following  pur- 
poses, namely : 

*  *  *  15.  To  authorize  or  to  regulate  the  levy,  the  assessment,  or 
the  collection  of  taxes,     *     *     *. 

Sec.  157.  The  tax  rate  of  cities,  towns,  counties,  taxing  districts,  and 
other  municipalities,  for  other  than  school  purposes,  shall  not,  at  any 

'This  compilation  is  derived  mainly  from  the  following  sources: 
The  Kentucky  Statutes,  second  edition,  prepared  by  John  D.  Carroll, 
1899. 
The  Session  Laws  of  1900. 
The  Session  Laws  of  1902. 


time,  exceed  the  following  rates  upon  the  value  of  the  taxable  property 
therein,  viz:  For  all  towns  or  cities  having  a  population  of  fifteen  thou- 
sand or  more,  one  dollar  and  fifty  cents  on  the  hundred  dollars;  for  all 
towns  or  cities  having  less  than  fifteen  thousand  and  not  less  than  ten 
thousand,  one  dollar  on  the  hundred  dollars;  for  all  towns  or  cities  hav- 
ing less  than  ten  thousand,  seventy-five  cents  on  the  hundred  dollars; 
and  for  counties  and  taxing  districts,  fifty  cents  on  the  hundred  dollars; 
unless  it  should  be  necessary  to  enable  such  city,  town,  county,  or  tax- 
ing district  to  pay  the  interest  on,  and  provide  a  sinking  fund  for  the 
extinction  of  indebtedness  contracted  before  the  adoption  of  this  con- 
stitution. . 

Sec.  170.  There  shall  be  exempt  from  taxation  public  property  used 
for  public  purposes;  places  actually  used  for  religious  worship,  with  the 
grounds  attached  thereto  and  used  and  appurtenant  to  house  of  wor- 
ship, not  exceeding  one-half  acre  in  cities  or  towns,  and  not  exceeding 
two  acres  in  the  country;  places  of  burial  not  held  for  private  or  cor- 
porate profit,  institutions  of  purely  public  charity,  and  institutions  of 
education  not  used  or  employed  for  gain  by  any  person  or  corporation, 
and  the  income  of  which  is  devoted  solely  to  the  cause  of  education; 
public  libraries,  their  endowments,  and  the  income  of  such  property  as 
is  used  exclusively  for  their  maintenance;  all  parsonages  or  residences 
owned  by  any  religious  society,  and  occupied  as  a  home,  and  for  no  other 
purpose,  by  the  minister  of  any  religion;  with  not  exceeding  one-half 
acre  of  ground  in  towns  and  cities  and  two  acres  of  ground  in  the  country 
appurtenant  thereto ;  household  goods  and  other  personal  property  of  a 
person  with  a  family,  not  exceeding  two  hundred  and  fifty  dollars  in 
value;  crops  grown  in  the  year  in  which  the  assessment  is  made,  and  in 
the  hands  of  the  producer;  and  all  laws  exempting  or  commuting  prop- 
erty from  taxation  other  than  the  property  above  mentioned  shall  be 
void.  The  general  assembly  may  authorize  any  incorporated  city  or 
town  to  exempt  manufacturing  establishments  from  municipal  taxation, 
for  a  period  not  exceeding  five  years,  as  an  inducement  to  their  location. 

Sec.  171.  The  general  assembly  shall  provide  by  law  an  annual  tax, 
which,  with  other  resources,  shall  be  sufficient  to  defray  the  estimated 
expenses  of  the  commonwealth  for  each  fiscal  year.  Taxes  shall  be 
levied  and  collected  for  public  purposes  only.  They  shall  be  uniform 
upon  all  property  subject  to  taxation  within  the  territorial  limits  of  the 
authority  levying  the  tax ;  and  all  taxes  shall  be  levied  and  collected  by 
general  laws. 

Sec.  172.  All  property,  not  exempted  from  taxation  by  this  constitu- 
tion, shall  be  assessed  for  taxation  at  its  fair  cash  value,  estimated  at  the 
price  it  would  bring  at  a  fair  voluntary  sale;    and  any  officer,  or  other 


704 


WEALTH,  DEBT,  AND  TAXATION. 


person  authorized  to  assess  values  for  taxation,  who  shall  commit  any 
willful  error  in  the  performance  of  his  duty,  shall  be  deemed  guilty  of 
misfeasance,  and  upon  conviction  thereof  shall  forfeit  his  office,  and  be 
otherwise  punished,  as  may  be  provided  by  law. 

Sec.  174.  All  property,  whether  owned  by  natural  persons  or  corpo- 
rations, shall  be  taxed  in  proportion  to  its  value,  unless  exempted  by 
this  constitution;  and  all  corporate  property  shall  pay  the  same  rate 
of  taxation  as  is  paid  by  individual  property.  Nothing  in  this  constitu- 
tion shall  be  construed  to  prevent  the  general  assembly  from  providing 
for  taxation  based  on  income,  licenses,  or  franchises. 

Sec.  175.  The  power  to  tax  property  shall  not  be  surrendered  or  sus- 
pended by  any  contract  or  grant  to  which  the  commonwealth  shall  be  a 
party. 

Sec.  180.  The  general  assembly  may  authorize  the  counties,  cities, 
or  towns  to  levy  a  poll  tax  not  exceeding  one  dollar  and  fifty  cents  per 
head.     *     *     * 

Sec.  181.  (Provides  that  the  general  assembly  shall  not  levy  taxes  or 
licenses  for  counties  and  municipalities,  but  may  authorize  them  todo  so.) 

Sec.  182.  Nothing  in  this  constitution  shall  be  construed  to  prevent 
the  general  assembly  from  providing,  by  law,  how  railroads  and  railroad 
property  shall  be  assessed  and  how  taxes  thereon  shall  be  collected. 
And,  until  otherwise  provided,  the  present  law  on  said  subject  shall 
remain  in  force. 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  A  county  assessor  in  each  county,  elected  for  a  term  of  four 
years  and  not  eligible  for  reelection. 

(2)  The  city  assessors:  In  cities  of  the  first  class,  elected  by  the  gen- 
eral council  for  four  years;  in  cities  of  the  second  class,  elected  by  the 
voters  for  four  years;  in  cities  of  the  third  class,  elected  by  the  council 
for  two  years;  in  cities  of  the  fourth  class,  appointed  by  the  council 
or  elected  for  four  years;  in  cities  of  the  fifth  class,  appointed  by  the 
council  for  two  years;  in  cities  of  the  sixth  class,  appointed  by  the 
trustees  for  two  years. 

(3)  The  sheriff,  who  is  county  tax  collector. 

(4)  The  city  tax  collectors:  In  cities  of  the  first  class,  a  tax  receiver, 
elected  for  four  years;  in  cities  of  the  second  class,  the  treasurer,  who 
collects  taxes;  in  cities  of  the  third  class,  a  tax  collector,  elected  annually 
by  the  council;  in  cities  of  the  fourth  class,  a  tax  collector,  appointed 
for  two  years  by  the  council;  in  cities  of  the  fifth  class,  the  marshal, 
who  collects  taxes;  in  cities  of  the  sixth  class,  the  marshal,  who  col- 
lects taxes. 

(5)  The  county  board  of  supervisors  of  taxes  (not  a  governing  or 
legislative  body),  generally  of  five  members,  appointed  by  the  county 
judge  each  year.  In  counties  where  there  are  cities  of  the  first  and 
second  classes  three  additional,  and  in  those  where  there  are  cities  of 
the  third  and  fourth  classes,  two  additional  members  are  appointed. 
This  board  acts  as  a  board  of  review  and  equalizes  the  assessment  as 
between  individuals. 

(6)  The  city  boards  of  equalization:  In  cities  of  the  first  class,  a 
board  of  equalization  of  three  persons,  elected  annually  \>y  the  board 
of  aldermen;  in  cities  of  the  second  class,  a  board  of  equalization  of 
three  persons,  appointed  annually  by  the  mayor  with  the  consent  of 
the  general  council;  in  cities  of  the  third  class,  a  board  of  tax  super- 
visors of  three  persons,  appointed  annually  by  the  mayor;  in  cities  of 
the  fourth  class,  three  supervisors  of  taxes,  appointed  annually  by  the 
board  of  council ;  in  cities  of  the  fifth  class,  a  board  of  equalization  of 
three  persons,  appointed  annually  by  the  city  council :  in  cities  of  the 
sixth  class,  a  board  of  equalization  of  three  persons,  appointed  annually 
by  the  board  of  trustees. 

(7)  The  state  board  of  equalization  of  assessments,  composed  of  one 
person  from  each  appellate  district  in  the  state,  appointed  by  the  gov- 
ernor, together  with  the  auditor  of  public  accounts.  The  term  is  two 
years. 


(8)  Revenue  agents:  One  in  each  county  may  be  appointed  bjT  the 
auditor  of  public  accounts,  with  powers  to  search  for  and  assess  prop- 
erty omitted  from  the  assessment  rolls.  He  receives  a  commission  of 
20  per  cent  of  the  taxes  recovered,  which  is  levied  as  a  penalty  in  addi- 
tion to  the  taxes.     The  total  amount  must  not  exceed  $5,000  per  annum. 

State  Revenues. 

a.   TAXES. 

I.    The  general  property  tax. 
1.  Base — 

a.  The  property  included  and  exempt. — "All  real  and 
personal  estate  within  this  state,  and  all  personal 
estate  of  persons  residing  in  this  state,  and  of  all  cor- 
porations organized  under  the  laws  of  this  state, 
whether  the  property  be  in  or  out  of  this  state,  includ- 
ing intangible  property,  which  shall  be  considered 
and  estimated  in  fixing  the  value  of  corporate  fran- 
chises as  hereinafter  provided,  shall  be  subject  to 
taxation  unless  exempt  by  the  constitution." 

■*  (1)  "Real  estate"  includes  all  lands  and  improvements. 

(2)  "  Personal  estate ' '  includes  every  other  species  and  character  of 
property — that  which  is  tangible  as  well  as  that  which  is  intangible. 

The  franchises  of  corporations  having  any  special  or  exclusive  privi- 
leges not  allowed  by  law  to  natural  persons,  or  performing  any  public 
service,  are  taxable. 

Mortgages  are  taxable  as  personal  property.  No  deduct  ion  on  account 
of  mortgages  is  allowed  on  the  assessed  value  of  land. 

Shares  of  stock  in  corporations  taxed  upon  their  franchises  are  not 
taxed,  but  shares  of  stock  in  national  banks  are  taxed  to  the  stock- 
holders and  the  banks  are  not  taxed. 

(3)  For  the  list  of  exemptions,  see  Constitution,  section  170.  Noth- 
ing else  may  be  exempted. 

b.  Assessment. — The  assessment  of  property  for 
taxation  is  made  by  the  local  assessors,  except  rail- 
road property,  assessed  by  the  railroad  commission, 
and  the  franchises  of  certain  corporations,  and  dis- 
tilled spirits,  which  are  assessed  by  the  state  board  of 
valuations  and  assessments. 

Each  taxpayer  is  required  to  make  to  the  assessor  a 
statement  under  oath  of  his  property  and  its  fair  cash 
value.  The  assessor,  however,  is  not  bound  by  such 
statement,  but  is  required  to  fix  the  value  himself. 

The  assessment  refers  to  the  15th  day  of  September 
and  is  completed  by  the  1st  of  January.  Rendering 
a  false  statement  is  treated  as  a  misdemeanor,  subject 
to  a  fine  of  not  over  $500  and  to  the  additional  pen- 
alty of  three  times  the  amount  of  the  tax  otherwise 
due.  Refusal  to  list  property  is  subject  to  a  fine  of 
not  over  $100. 

Railroad  property  is  returned  to  the  state  auditor  and  the  returns 
so  made  are  reviewed  by  the  railroad  commission.  The  assessment  is 
by  the  unit  rule  and  apportioned  on  a  mileage  basis. 

The  franchise  of  every  railroad  company  or  corporation,  and 
every  incorporated  bank,  trust  company,  guarantee  or  security  com- 
pany, gas  company,  water  company,  ferry  company,  bridge  company, 
street  railway  company,  express  company,  electric  light  company,  elec- 
tric power  company,  telegraph  company,  press  dispatch  compam-, 
telephone  company,  turnpike  company,  palace  car  company,  dining 
car  company,  sleeping  car  company,  chair  car  company,  and  every 


TAXATION  AND  REVENUE  SYSTEMS— KENTUCKY. 


705 


other  like  company,  corporation,  or  association  having  any  special  or 
exclusive  privilege  or  franchise  not  allowed  by  law  to  natural  persons, 
or  performing  any  public  service,  is  assessed  by  a  board  of  valuation 
and  assessment  composed  of  the  auditor,  treasurer,  and  secretary  of 
state,  on  the  basis  of  sworn  returns  from  the  officers  of  the  company. 
The  valuation  is  based  upon  the  market  value  of  the  capital  stock  and 
apportioned,  when  business  is  done  in  more  than  one  state,  in  propor- 
tion to  gross  earnings. 

When  persons,  or  associations  not  incorporated,  engage  in  any  similar 
business,  they  arc  to  be  assessed  for  a  franchise  in  the  same  manner. 

The  assessments  so  made  are  apportioned  among  the  counties,  cities, 
towns,  and  taxing  districts  in  the  state.  In  the  case  of  carriers  and  the 
like  this  is  done  on  the  basis  of  mileage.  In  other  cases  it  is  done  as 
nearly  as  may  be  according  to  the  location  of  the  property. 

The  assessment  of  turnpike  road  franchises  is  made  in  a  manner  simi- 
lar to  the  above  by  the  county  supervisors  in  each  county  in  which  the 
road  lies. 

Dist  illed  spirits  in  any  bonded  warehouse  are  also  assessed  by  the  board 
of  valuations  and  assessments. 

Property  not  listed  by  the  assessor  or  by  the  board  of  supervisors  of 
taxes  may  be  listed  by  the  sheriff  or  by  the  auditor  of  revenue  agents. 

Individual  stockholders  in  corporations  above  enumerated  are  not  as- 
sessed upon  their  shares,  except  stockholders  in  national  banks. 

The  assessor  is  paid  for  his  services  by  commissions :  4  cents  on  each 
$100  of  the  first  $1,000,000  and  1 J  cents  on  each  $100  of  the  excess  over 
$1,000,000,  but  not  to  exceed  $4,000  in  any  one  year.  In  counties 
where  the  assessed  value  exceeds  $38,000,000  the  assessor  is  allowed  as 
compensation  for  deputies  $1,000  for  each  $7,500,000  in  excess  of 
$38,000,000.  In  counties  where  the  assessment  does  not  exceed 
$1,000,000  the  assessor  is  allowed  4$  cents  per  $100. 

'  c.  Equalization, — -The  county  board  of  supervisors  of 
taxes  acts  as  a  board  of  review,  with  power  to  raise  or 
lower  any  list  and  correct  errors  in  assessment  books, 
but  it  may  not  add  property  that  has  wholly  escaped 
assessment,  that  being  done  by  the  sheriff  or  auditor's 
agent.  It  also  hears  and  passes  on  complaints.  An 
appeal  lies  to  the  county  court. 

The  state  board  of  equalization  equalizes  between 
counties.  It  is  to  ascertain  the  value  of  real  estate 
from  the  recorded  transfers,  and  is  to  take  70  per  cent 
of  such  values  as  the  basis  for  raising  or  lowering  the 
assessment  returned  in  each  county.  The  assessment 
of  personal  |property  is  raised  or  lowered  in  the  same 
proportion  as  the  assessment  of  real  property. 

2.  Rate — 

The  rate  of  taxation  for  state  purposes  is  fixed  by 
statute  and  changed  only  by  legislative  enactment. 

In  1897  it  was  fixed  at  52J  cents  for  the  next  three  years,  when  it  was 
to  become  47J  cents  on  each  $100  of  valuation.  In  1902  it  was  fixed  at 
50  cents. 

3.  Collection — 

All  taxes — state,  county,  and  district — are  collected 
by  the  sheriff  between  March  1  and  November  1.  The 
taxes  are  due  on  and  after  March  1,  and  become  de- 
linquent on  December  1,  when  6  per  cent  penalty  is 
added.  The  sheriff  is  required  to  pay  a  6  per  cent 
penalty  on  all  taxes  not  collected  by  him  prior  to  Jan- 
uary 1.  On  and  after  March  1  he  has  power,  after  de- 
mand, to  collect  by  distraint,  and  real  estate  may  be 
sold  if  no  personalty  be  found. 

The  sheriff  is  paid  by  commissions:  10  per  cent  on  the  first  $5,000 
and  4  per  cent  on  the  residue. 


II  and  III.    Poll  tax  and  inheritance  tax. 
There  are  no  state  poll  or  inheritance  taxes. 

IV.  Corporation  taxes. 

Most  corporations  are  taxed  under  the  general  prop- 
erty tax.  But  the  tax  on  the  franchise  of  certain 
general  classes  of  public  service  corporations,  while 
strictly  a  part  of  the  property  tax,  is  in  a  sense  analo- 
gous to  a  special  corporation  tax.  (See  State  revenues, 
a,  I.  1  b,  above.) 

Every  corporation  is  required  to  pay  an  "  organiza- 
tion tax"  of  1  per  cent  on  the  authorized  capital  stock 
at  the  time  of  organization,  and  upon  each  increase  of 
the  capital.  This  tax  is  so  much  larger  than  the  fees 
usually  required  for  granting  charters  that  it  is  classed 
here  rather  than  under  "fees."  It  is,  however,  not  a 
recurrent  tax  and  resembles  a  fee. 

Life  insurance  and  guarantee  companies,  foreign,  other  than  fraternal, 
pay  2  per  cent  on  premiums  received  in  the  state ;  foreign  building  and 
loan  associations,  2  per  cent  on  gross  receipts;  and  foreign  insurance 
companies,  other  than  life,  2  per  cent  on  premiums  received  in  the  state. 
Domestic  insurance  companies  are  taxed  on  their  property,  including 
their  franchises. 

V.  Business  taxes  and  licenses. 

State  licenses  are  issued  by  the  county  clerks,  ex- 
cept liquor  licenses,  which  are  granted  by  the  county 
court. 

The  rates  given  here  are  those  of  the  law  of  1902: 

Tavern  or  hotel,  per  annum,  $10;  tavern  or  hotel  selling  malt  liquor, 
per  annum,  $60:  tavern  or  hotel  selling  vinous  liquor,  per  annum,  $110; 
tavern  or  hotel  selling  spirituous  and  other  liquor,  per  annum,  $235;  to 
retail  malt  liquor,  per  annum,  $50;  to  retail  spirituous  and  vinous  liq- 
uors, per  annum,  $100;  to  retail  playing  cards,  per  annum,  $10;  to  retail 
pistols,  per  annum,  $100;  to  retail  bowie  knives,  dirks,  brass  knuckles, 
per  annum,  $100;  pawnbrokers,  per  annum,  $500:  trading  stamp  com- 
panies, each  county,  per  annum,  $10;  bowling  alleys  in  counties  over 
25,000,  per  annum,  $50;  bowling  alleys  in  counties  under  25,000,  per 
annum,  $25;  distillers,  per  annum,  $100;  manufacturers  of  vinous  liq- 
uors, per  annum,  $50;  merchants  selling  liquor,  per  annum,  $100;  drug- 
gists selling  liquor,  per  annum,  $75;  circuses,  etc.,  per  hundred  voters 
in  county  and  per  exhibition,  $1,  not  to  exceed  per  exhibition  $50;  side 
shows,  one-half  rate ;  tobacco  factories  with  products  less  than  $100,000, 
per  $1 ,000,  $1 ;  tobacco  factories  with  products  in  excess  of  $100,000,  per 
$1 ,000, 50  cents :  cigarettes,  per  $1 ,000  of  products,  $2.50 ;  slaughterhouses, 
packing  houses,  etc.,  on  value  of  products,  one-half  of  1  percent;  retail- 
ing cigarettes,  per  annum,  $10;  wholesaling  cigarettes,  per  annum,  $100; 
oil  depots,  per  annum,  $10;  retailing  oil,  per  annum,  $5;  foreign  manu- 
facturers and  dealers  in  cigarettes  on  sale  in  state,  per  $1,000,  $5;  on 
standing  stud-horse,  jack,  or  bull  for  service,  a  sum  equal  to  the  highest 
price  charged,  whether  for  the  season  or  for  issuance;  peddlers  for  entire 
state — one  person,  two-horse  wagon,  per  annum,  $50;  one  person,  one- 
horse  wagon,  per  annum,  $40;  one  person,  horseback,  per  annum,  $30; 
one  person,  on  foot,  per  annum,  $20;  itinerant  vendors,  per  annum,  $100; 
each  assistant,  per  annum,  $100;  peddlers'  in  one  county  only,  one- 
quarter  rates:  peddlers  of  lightning  rods  and  patent  rights,  double  rates; 
rectifiers  of  single  stamp  spirits  whose  sales  aggregate  500  barrels  or 
less,  per  annum,  $100;  sales  500  to  1,000  barrels,  per  annum,  $200;  sales 
over  1,000  barrels, per  annum,  $300;  breweries,  per  annum, $200;  agen- 
cies of  breweries,  per  annum,  $25;  wholesale  dealers  in  wines,  ales,  and 
mineral  waters,  per  annum,  $200. 

B.    FEES. 

By  the  commissioner  of  insurance.— Filing  charter,  $30;  filing  annual 
statement,  $25;  agent's  license  other  than  life  companies,  $3;  agent's 


932—07 


-45 


706 


WEALTH,  DEBT,  AND  TAXATION. 


license,  life  companies,  $5;  agent's  license,  industrial  life,  $2;  declara- 
tion of  intention  to  form  company,  $30;  supplemental  statement,  $2.5. 
In  place  of  the  usual  fees  for  incorporation  all  corporations  pay  an 
organization  tax  of  1  per  cent  on  their  capital.  (See  under  State  reve- 
nues, a,  IV,  above.) 

County  Revenues. 

A.    TAXES. 

I.  The  general  property  tax. 

1.  Base — 

The  property  included  and  the  method  of  assess- 
ment and  of  equalization  are  the  same  for  county  as 
for  state  taxation. 

2.  Rate— 

The  rate  is  fixed  by  the  fiscal  court  of  each  county. 
It  may  not  exceed  50  cents  on  each  $100  of  assessed 
valuation,  except  to  cover  debt  charges. 

3.  Collection — 

Taxes  for  county  purposes  are  collected  as  are  state 
taxes. 

II.  Poll  tax. 

(The  fact  is  here  noted  that  poll  taxes  are  levied  by 
counties  both  in  the  shape  of  a  money  levy  of  $1  per 
capita  for  roads  and  bridges,  and  also  of  work  on  the 
roads.  The  county  fiscal  court  may  require  six  days 
of  labor  from  each  able-bodied  male  in  the  county  out- 
side of  cities  and  towns,  and  they  may  pay  for  their 
labor  or  not  in  their  discretion.  The  amount  of  poll 
taxes  collected  in  1902  by  counties  for  road  purposes, 
plus  the  amount  of  labor  performed,  was  reported  of  a 
value  of  $640,000  for  the  state.) 

Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There  are  no  inheritance  or  special  corporation 
taxes. 

V.  Business  taxes  and  licenses. 

The  counties  do  not  receive  any  revenues  from  busi- 
ness taxes  or  licenses. 

Municipal  Revenues. 

a.   TAXES. 

I.   The  general  property  tax. 
1.  Base — 

a.  The  property  included  and  exempt. — The  property 
included  is  substantially  the  same  as  for  state  taxation, 
except  that  municipalities  may  exempt  manufacturing 
establishments  for  a  term  not  exceeding  five  years. 

b.  Assessment. — The  assessment  for  municipal  pur- 
poses is  made  by  assessors,  elected  in  the  different 


cities,  practically  the  same  as  for  state  taxation.     But 
cities  have  an  independent  valuation. 

c.  Equalization. — Cities  may  have  their  own  board 
of  equalization.     (See  list  of  officers.) 

2.  Rate— 

For  limitation  of  the  rates  which  may  be  levied,  see 
constitution,  section  157. 

In  general  the  levy  is  made  by  the  council  or  trus- 
tees. 

Incities  of  the  first,  second,  third,  and  fourth  classes  the  additional 
levy  for  school  purposes  may  not  exceed  50  cents  per  $100  of  assess^ 
valuation.  In  cities  of  the  fifth  class  the  rate  is  limited  to  75  cents 
and  in  cities  of  the  sixth  class  to  50  cents  per  $100  of  assessed  valuation. 

3.  Collection — 

The  method  is  essentially  the  same  as  for  state  tax- 
ation. 

II.  Poll  tax. 

In  all  cities  the  council  or  other  legislative  authority 
has  power  to  levy  a  poll  tax  on  all  adult  males  of  not 
to  exceed  $1.50. 

III.  Inheritance  tax. 

There  is  no  inheritance  tax. 

IV.  Corporation  taxes. 

Corporations  generally  are  taxed  on  their  property 
and  franchises  for  municipal  in  the  same  manner  as 
for  state  purposes.  In  cities  of  the  first  class,  street  rail- 
way, telephone,  and  gas  and  electric  light  plants  may  be 
taxed  from  2\  to  3£  per  cent  on  their  gross  receipts, 
the  assessment  being  made  by  the  state  board. 

V.  Business  taxes  and  licenses. 

Liquor  licenses  in  cities  are  not  less  than  $150  nor 
more  than  $1,000.  The  common  council  or  other 
legislative  authority  may  in  cities  of  all  classes  im- 
pose license  fees  on  stock  used  for  breeding  purposes; 
or  on  franchises,  trades,  occupations,  and  professions- 

School  Revenues. 

The  school  funds  are  provided  by  interest  upon 
obligations  continued  by  the  commonwealth  and  by  a 
state  tax  of  22  cents  on  each  $100  of  assessed  valua- 
tion of  property.  Special  taxes  both  on  polls  and  on 
property  for  buildings,  etc.,  may  be  voted  in  the  dis- 
tricts, and  the  same  proportion  of  all  fees,  fines,  for- 
feitures, and  licenses  as  the  taxes  for  schools  bear  to 
all  taxes  is  also  paid  into  the  school  fund. 


LOUISIANA. 


Louisiana  has  a  revenue  system  composed  of  the 
general  property  tax  and  an  extensive  list  of  license 
taxes.  The  characteristic  feature  of  the  system  is  the 
complete  uniformity  of  state  and  local  taxation. 
The  constitution  of  1898  embodied  nearly  all  of  the 
important  provisions  of  the  revenue  laws. 

1  This  compilation  is  derived  mainlv  from  the  Constitution  and  Re- 
vised Laws  of  Louisiana,  by  Solomon  Wholf ;  second  edition,  1904. 


CONSTITUTIONAL    PROVISIONS. 


Art.  48.  The  general  assembly  shall  not  pass  any  local  or  special 
law  on  the  following  specified  subjects: 

Sec.  16.  Exempting  property  from  taxation. 

Abt.  198.  No  person  less  than  sixty  years  of  age  shall  be  permitted 
to  vote  at  any  election  in  this  state  who  shall  not  *  *  *  have 
paid,  on  or  before  the  thirty-first  day  of  December  of  each  year,  for 
the  two  years  preceding  the  year  in  which  he  offers  to  vote,  a  poll  tax 


TAXATION  AND  REVENUE  SYSTEMS— LOUISIANA. 


707' 


of  one  dollar  per  annum,  to  be  used  exclusively  in  aid  of  the  public    j 
schools  of  the  parish  in  which  such  tax  shall  have  been  collected, 
which  tax  is  hereby  imposed  on  every  male  resident  of  this  state  be-    ; 
twicn  the  ages  of  twenty-one  and  sixty  years.     Poll  taxes  shall  be  a 
lien  only  upon  assessed  property,  and  no  process  shall  issue  to  enforce 
collection  of  the  same  except  against  assessed  property. 

Aet.  224.  The  taxing  power  may  be  exercised  by  the  general  assem- 
bly for  state  purposes,  and  by  parishes  and  municipal  corporations  and 
public  boards,  under  authority  granted  to  them  by  the  general  assem-    , 
blv,  for  parish,  municipal,  and  local  purposes  strictly  public  in  their 
character. 

Art.  225.  Taxation  shall  be  equal  and  uniform  throughout  the  ter- 
ritorial limits  of  the  authority  levying  the  tax,  and  all  property  shall 
be  taxed  in  proportion  to  its  value,  to  be  ascertained  as  directed  by 
law:  Provided,  The  assessment  of  all  property  shall  never  exceed  the 
actual  cash  value  thereof:  And  provided  further,  That  the  taxpayers 
shall  have,  the  right  of  testing  the  -correctness  of  their  assessments 
before  the  courts  of  justice.  In  order  to  arrive  at  this  equality  and 
uniformity,  the  general  assembly  shall,  at  its  first  session  after  the 
adoption  of  this  constitution,  provide  a  system  of  equality  and  uni- 
formity in  assessments,  based  upon  the  relative  value  of  property  in 
the  different  portions  of  the  state.  The  valuations  put  upon  property 
for  the  purposes  of  state  taxation  shall  be  taken  as  the  proper  valua- 
tion for  purposes  of  local' taxation  in  every  subdivision  of  the  state. 

Art.  226.  There  shall  be,  and  is  hereby,  created  a  state  board  of 
appraisers,  whose  duty  it  shall  be  to  assess  the  property  belonging  to 
corporations,  associations,  and  individuals  employed  in  railway,  tele- 
graph, telephone,  sleeping  car,  and  express  business  throughout  the 
state  of  Louisiana,  which  board  of  appraisers  shall  be  composed  of  the 
auditor  and  other  members  corresponding  in  numt>er  to  the  congres- 
sional districts  of  the  state,  to  be  elected  by  the  governor,  treasurer, 
attorney -general,  and  secretary  of  state,  one  member  from  each  congres- 
sional district,  for  the  term  of  four  years,  and  the  general  assembly 
shall  fix  the  compensation  of  said  board.  (As  amended  in  1902;  for- 
merly read  "property  employed  by,"  and  provided  six  members, 
elected  as  above.) 

Art.  227.  The  taxing  power  shall  be  exercised  only  to  carry  on  and 
maintain  the  government  of  the  state  and  the  public  institutions 
thereof,  to  educate  the  children  of  the  state,  to  preserve  the  public 
health,  to  pay  the  principal  and  interest  of  the  public  debt,  to  sup- 
press insurrection,  to  repel  invasion  or  defend  the  state  in  time  of 
war,  to  provide  pensions  for  indigent  Confederate  soldiers  and  sailors 
and  their  widows,  to  establish  markers  or  monuments  upon  the  battle- 
fields of  the  country  commemorative  of  the  services  of  Louisiana  sol- 
diers on  such  fields,  to  maintain  a  memorial  hall  in  New  Orleans  for 
the  collection  and  preservation  of  relics  and  memorials  of  the  late  Civil 
War,  and  for  levee  purposes,  as  hereinafter  provided. 

Art.  228.  The  power  to  tax  corporations  and  corporate  property 
shall  never  be  surrendered  nor  suspended  by  act  of  the  general  assembly. 

Art.  229.  The  general  assembly  may  levy  a  license  tax,  and  in  such 
case  shall  graduate  the  amount  of  such  tax  to  be  collected  from  the  per- 
sons pursuing  the  several  trades,  professions,  vocations,  and  callings. 
All  persons,  associations  of  persons,  and  corporations  pursuing  any  trade, 
profession,  business,  or  calling,  may  be  rendered  liable  to  such  tax, 
except  clerks,  laborers,  clergymen,  school  teachers,  those  engaged  in 
mechanical,  agricultural,  horticultural,  and  mining  pursuits  and  manu- 
facturers other  than  those  of  distilled,  alcoholic,  or  malt  liquors,  to- 
bacco, cigars,  and  cottonseed  oil.  No  political  corporation  shall  im- 
pose a  greater  license  tax  than  is  imposed  by  the  general  assembly  for 
state  purposes.  This  restriction  shall  not  apply  to  dealers  in  distilled, 
alcoholic,  or  malt  liquors. 

The  general  assembly  shall  have  authority  to  provide  that  munici- 
palities levying  license  taxes  equal  in  amount  to  those  levied  by  police 
juries  for  parochial  purposes,  shall  be  exempted  from  the  payment  of 
such  parochial  licenses. 

Art.  230.  The  following  shall  l>e  exempt  from  taxation  and  no  other, 
viz:  All  public  property ;  places  of  religious  worship  or  burial;  the  rec- 
tories and  parsonages  of  churches  and  grounds  thereunto  appurtenant, 


used  exclusively  as  residences  for  the  ministers  in  charge  of  such 
churches;  all  charitable  institutions;  all  buildings  and  property  used 
exclusively  for  public  monuments  or  historical  collections,  colleges,  and 
other  school  purposes;  the  real  and  personal  estate  of  any  public  library, 
and  that  of  any  other  library  association  used  by  or  connected  with  such 
library;  all  books  and  philosophical  apparatus,  and  all  paintings  and 
statuary  of  any  company  or  association  kept  in  a  public  hall:  Provided, 
That  the  property  so  exempted  be  not  leased  for  purposes  of  private  or 
corporate  profit  or  income.  There  shall  also  be  exempted  from  taxation 
household  property  to  the  value  of  five  hundred  dollars.  There  shall 
also  be  exempt  from  parochial  or  municipal  taxation  for  a  period  of  ten 
years  from  the  1st  of  January,  1900,  the  capital,  machinery,  and  other 
property  employed  in  mining  operations,  and  in  the  manufacture  of 
textile  fabrics,  yarns,  rope,  cordage,  leather,  shoes,  harness,  saddlery, 
hats,  clothing,  flour,  machinery,  articles  of  tin,  copper,  and  sheet  iron, 
agricultural  implements,  and  furniture  and  other  articles  of  wood,  marble, 
or  stone;  soap,  stationery,  ink  and  paper,  boat  building,  and  fertilizers 
and. chemicals;  provided,  that  not  less  than  five  hands  are  employed  in 
any  one  factory :  Provided,  That  nothing  herein  contained  shall  affect  the 
exemption  provided  for  by  the  existing  constitutional  provisions.  (As 
amended  in  1902.     The  additions  were  the  rectories  and  parsonages.) 

There  shall  also  be  exempt  from  taxation  for  a  period  of  ten  years  from 
the  date  of  its  completion  any  railroad  or  part  of  such  .railroad  that  may 
hereafter  be  constructed  and  completed  prior  to  January  1,  1904:  Pro- 
vided, That  when  aid  has  heretofore  been  voted  by  any  parish,  ward,  or 
municipality  to  any  railroad  not  yet  constructed,  such  railroad  shall 
not  be  entitled  to  the  exemption  from  taxation  herein  established, 
unless  it  waives  and  relinquishes  such  aid  or  consents  to  a  resubmission 
of  the  question  of  granting  such  aid  to  the  vote  of  the  property  tax- 
payers of  the  parish,  ward,  or  municipality  which  has  voted  the  same, 
if  one-third  of  such  taxpayers  petition  for  the  same  within  six  months 
after  the  adoption  of  this  constitution. 

And  provided  further,  That  this  exemption  shall  not  apply  to  double 
tracks,  sidings,  switches,  depots,  or  other  improvements  or  betterments, 
which  may  be  constructed  by  railroads  now  in  operation  within  this 
state,  other  than  extensions  or  new  lines  constructed  by  such  railroads; 
nor  shall  the  exemption  hereinabove  granted  apply  to  any  railroad  or 
part  of  such  railroad,  the  construction  of  which  was  begun  and  the  road- 
bed of  which  was  substantially  completed  at  the  date  of  the  adoption  of 
this  constitution. 

The  property  or  real  estate  belonging  to  any  military  organization  of 
the  state  of  Louisiana  which  is  used  by  the  State  National  Guard  or 
militia  for  military  purposes,  such  as  arsenals  or  armories,  while  so  used, 
shall  be  exempt  from  taxation. 

Art.  231.  The  general  assembly  shall  levy  an  annual  poll  tax  of  one 
dollar  upon  every  male  inhabitant  in  the  state  between  the  ages  of 
twenty -one  and  sixty  years,  for  the  maintenance  of  the  public  schools  in 
the  parishes  where  collected. 

Art.  232.  The  state  tax  on  property  for  all  purposes  whatever,  includ- 
ing expenses  of  government,  schools,  levees,  and  interest,  shall  not 
exceed,  in  any  one  year,  six  mills  on  the  dollar  of  its  assessed  valuation, 
and,  except  as  otherwise  provided  in  this  constitution,  no  parish,  munic- 
ipal or  public  board  tax  for  all  purposes  whatsoever,  shall  exceed  in  any 
one  year  ten  mills  on  the  dollar  of  valuation:  Provided,  That  for  giving 
additional  support  to  the  public  schools,  and  for  the  purpose  of  erecting 
and  constructing  public  buildings,  public  schoolhouses,  bridges,  wharves, 
levees,  sewerage  work,  and  other  works  of  permanent  public  improve- 
ment, the  title  to  which  shall  be  in  the  public,  any  parish,  municipal 
corporation,  ward,  or  school  district  may  levy  a  special  tax  in  excess  of 
said  limitation,  whenever  the  rate  of  such  increase  and  the  numlier  of 
years  it  is  to  be  levied  and  the  purpose  or  purposes  for  which  the  tax 
is  intended,  shall  have  been  submitted  to  a  vote  of  the  property  tax- 
payers of  such  parish,  municipality,  ward,  or  school  district  entitled  to 
vote  under  the  election  laws  of  the  state,  and  a  majority  of  the  same 
in  numbers,  and  in  value,  voting  at  such  election  shall  have  voted 
therefor. 

Art.  233.  (Provides  for  the  sale  of  property  for  delinquent  taxes,  for 
its  redemption,  and  for  the  limitation  of  actions  therefor,  etc.) 


708 


WEALTH,  DEBT,  AND  TAXATION. 


Art.  234.  The  tax  shall  bo  designated  by  the  year  in  which  it  is  col- 
lectible, and  the  tax  on  movable  property  shall  be  collected  in  the  year 
in  which  the  assessment  is  made. 

Art.  235.  The  legislature  shall  have  power  to  levy  solely  for  the  sup- 
port of  the  public  schools,  a  tax  upon  inheritances,  legacies,  and  dona- 
tions: Provided,  That  no  direct  inheritance,  or  donation,  to  an  ascend- 
ant or  descendant,  below  ten  thousand  dollars  in  amount  or  value  shall 
be  so  taxed:  Provided  further.  That  no  such  tax  shall  exceed  three  per 
cent  for  direct  inheritances  and  donations  to  ascendants  or  descend- 
ants, and  ten  per  cent  for  collateral  inheritances,  and  donations  to  col- 
laterals or  strangers:  Provided,  That  bequests  to  educational,  religious, 
or  charitable  institutions  shall  be  exempt  from  this  tax. 

Art.  236.  The  tax  provided  for  in  the  preceding  article  shall  not  be 
enforced  when  the  property  donated  or  inherited  shall  have  borne  its 
just  proportion  of  taxes  prior  to  the  time  of  such  donation  or  inheri- 
tance. 

Art.  238.  (Provides  for  a  one-mill  tax  for  levees.) 

Art.  239.  (Provides  for  levee  districts  and  a  ten-mill  tax  on  oroDerty 
therein.) 

Art.  242.  Corporations,  companies,  or  associations  organized  or 
domiciled  out  of  the  state,  but  doing  business  therein,  may  be  licensed 
and  taxed  by  a  mode  different  from  that  provided  for  home  corporations 
or  companies:  provided  said  different  mode  of  licenses  shall  be  uniform, 
upon  a  graduated  system,  and  said  different  mode  of  taxation  shall  be 
equal  and  uniform  as  to  all  such  corporations,  companies,  or  associations 
that  transact  the  same  kind  of  business. 

Art.  243.  All  the  articles  and  provisions  of  this  constitution  regulat- 
ing and  relating  to  the  collection  of  state  taxes  and  tax  sales  shall  also 
apply  to  and  regulate  the  collection  of  parish,  district,  municipal,  board, 
and  ward  taxes. 

Art.  270.  (Provides  that  the  general  assembly  may  authorize  parishes, 
etc.,  to  levy  special  taxes  by  vote  of  the  property  taxpayers  for  special 
improvements  and  for  railroads.) 

Art.  281.  (Provides  for  drainage  district  taxes.) 

Art.  291.  (Provides  for  a  road  district  tax  to  be  levied  by  the  police 
jury  of  at  least  one  mill  and  a  per  capita  tax  of  not  more  than  one  dollar 
on  all  able-bodied  males  between  eighteen  and  fifty-five  years  of  age,  and 
license  taxes  of  not  less  than  twenty-five  cents  nor  more  than  one  dollar 
on  vehicles.) 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  The  assessors,  one  in  each  parish,  appointed  by  the  governor,  who 
hold  office  for  four  years  and  are  paid  by  commissions.  In  the  parish  of 
Orleans  the  governor  appoints  seven  tax  assessors,  one  from  each  munici- 
pal district,  who  are  paid  salaries. 

(2)  The  police  juries  of  the  various  parishes,  who  act  as  a  board  of 
review. 

(3)  The  sheriff  of  each  parish  is  ex  officio  tax  collector.  But  in 
Orleans  parish  the  governor  appoints  seven  tax  collectors,  by  districts. 
They  are  paid  by  commissions. 

(4)  The  state  board  of  appraisers,  composed  of  the  auditor  and  one 
member  from  each  congressional  district,  appointed  by  the  governor, 
treasurer,  attorney-general,  and  secretary  of  state,  which  assesses  the 
property  belonging  to  corporations,  associations,  and  individuals  em- 
ployed in  railway,  telegraph,  telephone,  sleeping  car,  and  express 
business. 

State  Revenues. 

a.   TAXES. 

I.    The  general  'property  tax. 
1.  Base — 
a.  .  The  property  included  and  exempt. — All  property 
situated    in    the   state,  except    such   as   is   expressly 
exempt,  is  subject  to  taxation. 


(1)  and  (2)  The  term  "property"  isdefined  to  include  all  real  estate; 
interests  in  ships  or  vessels  used  in  the  waters  of  the  state;  railroads, 
roads,  canals,  and  other  ways  of  communication;  engines,  boilers,  etc.; 
telephone  and  telegraph  lines;  machines  and  machinery;  vehicles;  pat- 
ents, copyrights,  trade  marks,  privileges,  charters,  and  franchises:  lum- 
ber, brick,  and  building  materials;  all  movable  property;  all  personal 
property :  consigned  goods ;  liquors ;  and  many  other  enumerated  articles. 
All  crops,  whether  garnered  or  growing,  are  regarded  as  attached  to  the 
land. 

No  deduction  from  cash  on  hand  is  allowed  for  any  money  owed. 

Assets  of  banking  corporations  whose  shares  of  stock  are  taxed  are 
exempt. 

(3)  The  exemptions  are  all  stated  in  the  constitution.   (See  article  230.) 

b.  Assessment. — There  is  but  one  assessment  for 
state,  parish,  and  municipal  purposes,  and  that  is  made 
by  the  assessors  appointed  for  the  parishes,  except  as 
specified  below.  The  assessor  makes  up  the  list  for 
each  taxpayer,  who  is  required  to  furnish  all  needful 
information  and  to  sign  and  swear  to  the  list.  The 
oath  also  covers  the  valuations  of  lands.  In  assessing 
mercantile  firms  the  average  capital  is  to  be  ascertained. 
The  assessor  in  arriving  at  values  is  to  acquaint  him- 
self with  the  amount  of  insurance  carried  and  the  pur- 
chase price  paid,  and  must  examine  the  records  of 
mortgages  and  conveyances.  The  assessment  must 
be  at  actual  cash  value,  and  is  made  on  the  1st  of 
March,  "on  the  basis  of  the  condition  of  things  that 
existed  on  the  1st  day  of  January."  Making  a  false 
tax  list  is  punishable  as  perjury,  and  failure  to  make  a 
list  works  estoppel  of  the  rights  of  the  taxpayer  to  con- 
test the  assessments. 

Shares  of  stock  of  national  banks  arc  assessed  to  the  shareholders  at 
the  place  where  the  bank  is  located  and  at  the  value  as  shown  by  the 
books  less  the  real  estate  taxed  to  the  bank. 

Corporations,  other  than  the  above,  are  assessed  upon  their  property. 

The  real  estate,  roadbeds,  roads,  iron,  tracks,  superstructures,  exca- 
vations, and  channels  of  railroads,  canals,  and  other  transportation 
or  telegraph  companies,  are  assessed  in  the  parish  where  located;  all 
other  property  is  taxed  at  the  principal  office;  but  the  rolling  stock  or 
movable  property  of  such  corporations  which  is  only  partly  in  the  state 
is  assessed  on  the  ratio  of  miles  in  the  state  to  total  mileage.  This  assess- 
ment is  made  by  the  state  board  of  appraisers. 

c.  Equalization. — The  police  juries  (in  New  Orleans, 
a  committee  of  the  city  council)  act  as  a  board  of 
reviewers  to  revise  and  correct  the  assessment  rolls  and 
to  pass  upon  complaints.  But  they  can  not  change 
any  valuations  without  the  concurrence  of  the  assessors. 
If  concurrence  can  not  be  had,  the  assessment  as  orig- 
inally made  stands  unless  the  taxpayer  demands  that 
it  be  adjudicated  by  the  court,  in  which  case  it  is  car- 
ried before  the  court  by  the  board.  But  the  taxpayer 
may  in  any  event  bring  action  for  relief. 

The  assessment  of  railroad,  telegraph,  and  telephone  lines  passing 
through  different  parishes  is  equalized  by  a  board  composed  of  one  mem- 
ber of  each  of  the  police  juries  in  the  parishes  through  which  the  roads, 
etc.,  run. 

2.  Rate— 
The  rate  is  fixed  by  statute. 

In  1902  it  was  2  mills  on  the  dollar  for  interest,  1  mill  on  the  dollar  for 
levees,  1J  mills  on  the  dollar  for  public  education,  1 J  mills  on  the  dollar 
for  general  purposes — total,  6  mills,  as  fixed  by  the  constitution. 


TAXATION  AND  REVENUE  SYSTEMS— LOUISIANA. 


709 


3.  Collection — 
Taxes — state,  parish,  and  local — are  collected  by 
the  sheriff  (in  Orleans  parish,  by  six  tax  collectors). 
The  lien  for  taxes  attaches  on  the  day  the  tax  roll  is 
completed  and  filed  with  the  recorder  of  mortgages, 
which  is  to  be  as  soon  as  possible  after  September  1, 
and  this  lien  becomes  a  prior  mortgage  on  December 
31,  at  which  time  taxes  begin  to  draw  interest  at  2 
per  cent  a  month.  The  taxpayer  in  addition  has  to 
bear  the  expense  of  notice,  advertisement,  and  sale. 
(See  Constitution.)  Taxpayers  may  point  out  the 
particular  parcels  of  property  to  be  sold,  but  the  tax 
collector  may  seize  movables  without  notice. 

Tax  collectors  are  paid  by  commissions  at  5  per  cent  of  all  state 
and  parish  taxes  collected  and  the  regular  fees  for  and  seizure  and 
sale  of  property. 

II.  Poll  tax. 

There  is  no  state  poll  tax. 

III.  Inheritance  tax. 

There  is  no  state  inheritance  tax.  The  old  inherit- 
ance tax  was  declared  unconstitutional  in  1897.  A 
new  inheritance  tax  was  provided  by  law  in  1904, 
which,  however,  is  a  parish  tax  for  schools.  (See  Par- 
ish revenues  and  Municipal  revenues.) 

IV.  Corporation  taxes. 

Certain  corporations  are  specially  taxed  under  the 
system  of  license  taxes.  (See  particularly  V.  Manu- 
facturers, Banks,  Insurance  companies,  Foreign  cor- 
porations.) 

V.  Business  taxes  and  licenses. 

Manufacturers — In  twenty-five  classes,  according  to  gross  annual 
receipts.  The  lowest  class  consists  of  those  with  receipts  less  than 
$25,000  per  annum,  for  which  the  tax  is  $15,  and  the  highest  class  con- 
sists of  those  whose  receipts  are  over  $10,000,000,  in  which  case  the 
tax  is  $8,000.     The  rates  approximate  roughly  $7  per  $10,000. 

Banks — In  fourteen  classes,  according  to  capital  and  surplus.  The 
lowest  class  consists  of  those  with  a  nominal  capital  and  surplus  of 
$50,000  or  less,  and  the  highest,  of  all  over  $5,000,000.  The  rates  range 
from  $50  to  $4,500.  The  scale  of  rates  is  slightly  irregular,  but  approxi- 
mates $1  per  $1,000. 

Private  banks — In  four  classes,  by  capital.  The  lowest  class  consists 
of  those  under  $150,000,  and  the  highest,  of  those  over  $500,000. 
The  rates  range  from  $75  to  $500,  are  in  irregular  gradation,  but 
approximate  $1  per  $1,000. 

Factors,  commission  men,  and  brokers — In 'seventeen  classes.  The 
lowest  class  consists  of  those  whose  gross  annual  commissions  are  $5,000 
or  under;  the  highest,  of  those  over  $250,000.  The  rates  range  from 
$25  to  $1,750,  are  very  irregular,  but  approximate  8  per  cent. 

Pawnbrokers — With  capital  of  $50,000  or  more,  $500;  with  capital  of 
lew  than  $10,000,  $375. 

Wholesale  mercantile  business  —  In  sixteen  classes.  The  lowest 
class  consists  of  those  whose  gross  sales  are  $250,000  or  less,  and  the 
highest,  of  those  whose  gross  sales  are  $7,000,000  or  over.  The  rates 
range  from  $50  to  $3,500,  are  irregular,  but  approximate  $2  per  $10,000. 

Retail  mercantile  business — In  twenty-four  classes.  The  lowest 
class  consists  of  those  whose  gross  sales  are  $5,000  or  less,  and  the  high- 
est, of  those  whose  gross  sales  are  $3,500,000  or  over.  The  rates  range 
from  $5  to  $3,500  and  are  $1  per  $1,000  of  the  lower  limit  of  each  class. 

Insurance  companies. — (a)  Life  and  accident  companies,  in  sixty- 
nine   classes,   according   to   gross   premiums   received    in   the    state. 
The  lowest  consists  of  those  whose  gross  premiums  are  $20,000  or  less,    j 
and  the  highest,  of  those  whose  gross  premiums  are  $700,000  or  more.    1 


The  rates  range  from  $150  to  $5,250,  rising  by  regular  stages  of  $75  each, 
and  amount  to  $75  per  $10,000.  (6)  Fire,  marine,  and  other  insurance 
companies,  in  thirty  classes,  according  to  gross  premiums  in  the  state. 
The  lowest  consists  of  those  whose  gross  premiums  are  $15,000  or  less, 
and  the  highest,  of  those  whose  gross  premiums  are  $300,000  or  more. 
The  rates  range  from  $150  to  $4,500,  rising  by  stages  of  $75  at  first  for 
every  $10,000  increase,  then  by  stages  of  $150  for  $20,000  increases,  or 
roughly,  $75  per  $10,000. 

Transfer  and  express  lines,  tug  boats,  collection  agencies,  storage 
warehouses,  and  landings — In  ten  classes,  according  to  gross  annual 
receipts.  The  lowest  consists  of  those  whose  gross  receipts  are  under 
$25,000,  and  the  highest,  of  those  whose  gross  receipts  are  $500,000  or 
more.  The  rates  range  from  $30  to  $400  and  are  sharply  regressive, 
being  $1.20  per  $1,000  at  the  bottom  and  only  80  cents  per  $1,000  at 
the  top.     Warehouses  receiving  less  than  $350  are  exempt. 

Storage  of  sugar  and  molasses — In  nine  classes,  according  to  gross 
receipts.  The  lowest  consists  of  those  whose  gross  receipts  are  $3,000, 
and  the  highest,  of  those  whose  gross  receipts  are  $20,000.  The  rates 
range  from  $75  to  $1,000  in  very  irregular  grades. 

Refining  sugar  and  molasses — One-eighth  of  1  per  cent  upon  the  gross 
receipts. 

Urban  horse,  steam,  or  electric  railroads — Three-eighths  of  1  per  cent 
of  the  annual  gross  receipts;  but  in  cities  of  less  than  50,000  inhabitants, 
three  classes:  First  class,  gross  receipts  $25,000  or  over,  $100;  second 
class,  gross  receipts  $3,000  and  under  $25,000,  $50;  third  class,  gross 
receipts  less  than  $3,000,  $15. 

Debenture,  redemption,  loan,  and  investment  companies — In  ten 
classes,  according  to  gross  receipts,  the  lowest  consists  of  those  whose 
gross  receipts  are  $10,000  or  less;  the  highest,  of  those  whose  gross 
receipts  are  $300,000  or  more.  The  rates  range  from  $75  to  $3,000 
and  are  roughly  1  per  cent. 

Carrying  on  the  business  of  gaslight,  electric  light,  waterworks, 
shoot  the  chutes,  miniature  railroads,  sawmills  employing  ten  or  more 
hands,  telegraphing  (including  local  and  district  telegraph),  telephon- 
ing, express  company,  cotton  compress  or  ginnery,  cotton  pickery, 
slaughterhouse,  distillery  and  rectifying  alcoholic  or  malt  liquors,  brew- 
ing ale,  beer,  porter,  or  other  malt  liquors;  manufacturing  tobacco, 
cigars,  and  cigarettes;  refining  sugar  and  molasses,  or  either  of  them; 
manufacturing  cottonseed  oil,  oil  cake,  or  cottonseed  meal — With  some 
minor  exemptions,  in  twenty  classes,  according  to  gross  annual  receipts: 
the  lowest  consisting  of  those  whose  gross  receipts  are  under  $15,000, 
and  the  highest,  of  those  whose  gross  receipts  are  $2,000,000  or  over. 
The  rates  range  from  $20  to  $6,250,  being  irregular  and  approximately 
$2.25  per  $1,000. 

Theaters,  opera  houses,  etc. — In  four  classes,  according  to  the  num- 
ber of  seats  or  spaces  for  seats:  First  class,  1,000  seats  or  more,  $400; 
second  class,  750  and  less  than  1,000  seats,  $300;  third  class,  500  and 
less  than  750  seats,  $250;  fourth  class,  less  than  500  seats,  $175.  In 
cities  of  from  5,000  to  25,000,  two  classes — (1)  500  seats  or  over,  $100; 
(2)  less  than  500  seats,  $75.  In  towns  under  5,000,  $10  per  1,000 
inhabitants.  For  any  place  where  cancan,  clodoche,  or  similar  female 
dancing  or  sensational  performances  are  held — In  cities  of  25,000  or 
over,  $5,000;  in  other  towns,  $2,500. 

Museums,  menageries,  circuses,  traveling  shows — In  eleven  classes, 
according  to  number  of  attaches:  The  lowest  is  one  person;  the  highest, 
100  or  over.    The  rates  range  from  $30  to  $500  and  are  sharply  regressive. 

Agents  for  railroad  and  steamship  tickets — Representing  one  com- 
pany, $25;  two  companies,  $40;  three  or  more  companies,  $50. 

Peddlers  and  hawkers — On  foot,  $10;  on  horseback,  $25;  one-horse 
vehicle,  $40;  two-horse  vehicle,  $75;  water  craft,  $200. 

Hotels  and  lodging  houses — In  ten  classes,  according  to  the  number  of 
rooms:  The  lowest,  6  to  9  rooms  (under  6  exempt);  the  highest,  300  or 
more.     The  rates  range  from  $40  to  $600. 

Barrooms,  saloons,  beer  gardens,  etc. — In  eight  numbered  classes, 
with  an  extra  class  A,  according  to  gross  receipts:  The  lowest  consists 
of  those  whose  gross  receipts  are  less  than  $5,000;  the  highest,  of  those 
whose  gross  receipts  are  $50,000  or  more.  The  rates  range  from  $100  to 
$1,500. 

Billiard  tables,  etc.,  and  bowling  alleys,  $10. 


710 


WEALTH,  DEBT,  AND  TAXATION. 


Soda  water,  mead,  etc. — In  seven  classes,  according  to  gross  sales: 
The  lowest  consists  of  those  whose  gross  sales  are  less  than  $2,000, 
and  the  highest,  of  those  whose  gross  sales  are  $10,000  or  more.  The 
rates  range  from  $5  to  $50  and  are  roughly  one-half  of  1  per  cent. 

Agencies  for  steamboats,  drays,  cabs,  etc.,  undertakers,  livery 
stables,  toll  bridges,  ferries,  builders,  stevedores,  billposters,  contract- 
ors, and  mechanics  who  employ  assistants — In  thirteen  classes,  by  gross 
receipts:  The  lowest  consists  of  those  whose  gross  receipts  are  under 
$750,  and  the  highest,  of  those  whose  gross  receipts  are  $20,000  or  over. 
The  rates  range  from  $5  to  $120  and  are  roughly  1  per  cent  up  to  $6,000 
and  less  above  that. 

Physicians,  attorneys  at  law,  editors,  dentists,  oculists,  photographers, 
jewelers,  etc.,  the  same  as  the  rates  in  preceding  paragraph. 

Traveling  vendors  of  stoves,  lightning  rods,  clocks,  $200;  trading 
stamp  companies,  when  gross  receipts  are  under  $5,000,  $250;  when  over 
$5,000,  $500. 

Foreign  corporations — Banks,  etc.,  2J  per  cent  on  gross  profits  of 
money  loaned  and  exchanged,  bought,  or  sold,  but  with  a  minimum 
of  $1,000;  telegraph  companies,  $3  per  $100  of  gross  receipts;  telephone 
companies,  $5  from  each  $1,000  of  gross  receipts;  electric  light,  power, 
renting  motors,  fans,  and  other  electric  appliances,  $5  on  each  $1,000  of 
gross  receipts;  express  companies,  $10  on  each  $1,000  of  gross  receipts; 
coal  oil,  petroleum,  naphtha,  benzine,  or  other  mineral  oils,  $5  per 
$1,000  of  gross  receipts;  meats,  cured,  salted,  smoked,  or  canned,  $2  per 
$1,000  of  proceeds,  all  payable  at  principal  place  of  business. 

Benevolent  or  fraternal  societies,  etc.,  who  solicit  membership  from 
house  to  house — In  four  classes,  according  to  gross  annual  collec- 
tions: The  lowest  consists  of  those  whose  gross  annual  collections  are 
$20,000  or  less,  and  the  highest,  of  those  whose  gross  annual  collections 
are  $50,000  or  more.  The  rates  range  from  $150  to  $375.  (Enacted  in 
1902.) 

Pistols,  etc.,  and  cartridges — Wholesale  dealers  in  pistols  and  rifles, 
$10;  in  cartridges,  $5.  Retail  dealers  in  pistols  and  rifles,  $100;  in 
cartridges,  $50. 

Race  tracks — In  cities  of  100,000  or  over,  $2,500 ;  in  cities  of  50,000 
or  over,  $1,000;  in  cities  of  25,000  or  over,  $500;  in  cities  of  10,000  or 
over,  $100;  in  cities  of  less  than  10,000,  $50. 

VI.  Special  assessments. 

Laws  for  the  government  of  levee  districts  authorize  such  districts  to 
levy  "local  assessment  or  forced  contributions"  to  aid  in  the  construc- 
tion and  maintenance  of  levees  within  those  districts.  These  special  as- 
sessments include:  (1)  An  acreage  tax  of  2J  cents  on  all  lands  and  $60 
per  mile  for  all  railroads  situated  within  the  district;  and  (2)  25  cents 
per  bale  of  cotton,  25  cents  per  thousand  pounds  of  sugar,  7\  cents  per 
barrel  of  syrup,  5  cents  per  barrel  of  molasses,  1  \  cents  per  sack  of  rough 
rice,  and  1J  cents  on  a  barrel  of  esculents  produced  in  such  district  on 
jands  subject  to  taxation  under  the  provision  of  the  acts.  The  assess- 
ment or  contribution  first  mentioned  is  spoken  of  in  state  reports  as 
"acreage  tax,"  and  the  second  as  "cotton  and  produce  tax."  These 
taxes  are  collected  by  parish  officials  the  same  as  all  other  state  taxes> 
and  by  them  are  returned  to  the  state  treasurer,  by  whom  they  are 
treated  as  state  revenues — in  law  the  levee  districts  not  being  mu- 
nicipalities. 

Parish  Revenues. 

a.   TAXES. 

I.   The  general  property  tax. 
1.  Base — 
The  property  included  and  the  methods  of  its  assess- 
ment and  equalization  are  precisely  the  same  for  parish 
purposes  as  for  state. 


2.  Rate- 
Levied  by  the  police  juries,  and  not  to  exceed  10  mills 

on  the  dollar  for  general  purposes,  including  schools. 

3.  Collection — 

Taxes  for  parishes  are  collected  in  precisely  the  same 
manner  as  state  taxes. 

II.  Poll  tax. 

Every  male  over  21  years  of  age  is  subject  to  a  poll 
tax  of  $1,  which  is  collected  by  the  sheriff  (in  the  city 
of  New  Orleans,  by  the  treasurer).  This  tax  is  a  lien 
on  any  property,  real  or  personal,  of  the  taxpayer,  and 
attaches  on  the  1st  of  January. 

III.  Inheritance  tax. 

The  inheritance  tax  enacted  in  1904,  according  to 
the  provisions  of  the  constitution,  is  to  be  levied  on 
estates  that  have  not  borne  their  "just  proportion  of 
taxes."  This  tax  is  collected  by  the  judges  of  probate 
courts  in  the  parishes  for  the  benefit  of  the  school 
fund.     The  rate  is  10  per  cent. 

IV.  Corporation  taxes. 

Corporation  taxes  take  the  form  of  license  taxes. 

V.  Business  taxes  and  licenses. 

Parishes  may  levy  licenses  not  to  exceed  those 
levied  by  the  state. 

Municipal  Revenues. 

a.   TAXES. 

I.   The  general  property  tax. 

1.  Base— 

The  property  included  and  the  methods  of  its  assess- 
ment and  equalization  are  precisely  the  same  as  for 
state  purposes. 

2.  Rate- 
Levied  by  the  municipal  board,  and  not  to  exceed 

10  mills. 

3.  Collection — 

The  same  as  for  state  taxes. 

11  and  III.  Poll  tax  and  inheritance  tax 
See  Parish  revenues. 

IV.  Corporation  taxes. 
Levied  as  licenses,  which  see. 

V.  Business  taxes  and  licenses. 

Municipalities  may  levy  the  same  licenses  as  the 
state,  but  the  rates  may  not  exceed  the  state  rates. 

School  Revenues. 

The  school  funds  consist  of  a  tax  of  not  less  than  1J 
mills  on  the  dollar,  collected  by  the  state ;  the  proceeds 
of  the  poll  tax ;  interest  of  public  funds  and  donations ; 
and  the  local  school  taxes. 


TAXATION  AND  REVENUE  SYSTEMS— MAINE. 


711 


MAINE. 


The  general  property  tax  is  the  chief  feature  of  the 
revenue  system  of  Maine.  It  is  supplemented  by  a 
poll  tax,  a  franchise  and  excise  tax  on  corporations, 
and  an  inheritance  tax.  The  administration  of  the 
tax  lies  with  the  towns  and  other  divisions  of  the  local 
government,  but,  as  the  basis  for  the  apportionment  of 
state  and  county  taxes,  the  assessments  made  locally 
are  equalized  once  every  two  years  by  a  state  board. 
The  plan  of  treating  each  town  as  a  unit  and  of 
charging  it  with  all  state  and  county  taxes  appor- 
tioned to  it  is  logically  carried  out  by  crediting  to  it 
all  taxes  collected  therein  by  state  officials,  even  to  the 
extent  of  allowing  the  towns  credits  in  excess  of  debts. 
The  county  is  not  an  independent  governmental  area 
but  a  branch  or  district  in  the  administration  of  the 
Btate. 

CONSTITUTIONAL    PROVISIONS. 

ARTICLE    I. 

Sec.  22.  No  tax  or  duty  shall  be  imposed  without  the  consent  of 
the  people  or  their  representatives  in  the  legislature. 

ARTICLE   IX. 

Sec  7.  While  the  public  expenses  shall  be  assessed  on  polls  and 
estates,  a  general  valuation  shall  be  taken  at  least  once  in  ten  years. 

Sec.  8.  All  taxes  upon  real  and  personal  estate,  assessed  by  authority 
of  this  state,  shall  be  apportioned  and  assessed  equally,  according  to 
the  just  value  thereof. 

Sec.  9.  The  legislature  shall  never  in  any  manner  suspend  or  sur- 
render the  power  of  taxation. 

OFFICERS. 

The  officers  most  directly  concerned  with  taxa- 
tion are: 

(1)  The  town  assessors,  elected  annually,  as  many  as  the  town  shall 
determine;  if  the  town  fails  to  elect  these  officers,  the  selectmen  shall 
&ct  as  assessors. 

(2)  The  town  tax  collectors,  elected  annually;  the  constable  may  be 
tax  collector. 

(3)  The  board  of  state  assessors,  consisting  of  three  members  chosen 
by  the  legislature  for  a  full  term  of  six  years,  one  elected  every  two 
years.  This  board  has  supervision  over  the  local  assessors,  acts  as  a 
board  of  equalization,  and  administers  the  laws  as  to  the  taxation  of 
corporations. 

State  Revenues. 

a.   TAXES. 

I.    The  general  property  tax. 

The  general  property  tax  is,  strictly  speaking,  a 
town  or  local  tax,  the  state  and  county  taxes  being 
apportioned  among  tne  towns  once  every  two  years 
to  be  raised  on  polls  and  estates  in  such  manner  as 
the  towns  shall  provide.  But  there  are  so  many  regu- 
lations  limiting   and   prescribing   the    action   of   the 

1  This  compilation  is  derived  mainly  from  the  Revised  Statutes  of  the 
State  of  Maine,  compiled  by  John  C.  Morrill,  and  submitted  to  the 
legislature,  January  7,  1903.     Portland,  Me.,  1904. 


assessors  which  are  involved  in  the  apportionment 
of  the  state  and  designed  to  secure  uniformity,  that 
there  is  no  serious  impropriety,  and  a  number  of  advan- 
tages, in  describing  the  entire  tax  under  State  revenues. 
1.  Base — 

a.  The  property  included  and  exempt. — All  real  prop- 
erty within  the  state,  all  personal  property  of  inhab- 
itants of  the  state,  and  all  personal  property  of  per- 
sons not  inhabitants  of  the  state  possessed  or  situated 
in  the  state  are  subject  to  taxation. 

(1)  "  Real  estate,"  for  purposes  of  taxation,  includes  all  lands  in  the 
state  and  all  erections  thereon,  all  townships  and  tracts  of  land,  the 
fee  of  which  passed  from  the  state  since  the  year  1850,  and  all  interest 
in  timber  upon  public  lands  derived  by  permits  granted  before  the  sep- 
aration of  Maine  from  Massachusetts.  Interest  and  improvements  on 
land  the  fee  of  which  is  in  the  state,  and  interest  by  contract  or  other- 
wise in  land  are  exempt  from  taxation.  The  buildings  of  every  railroad 
company,  whether  within  or  without  the  located  right  of  way,  and  its 
lands  and  fixtures  outside  of  its  located  right  of  way  are  subject  to 
taxation  as  "nonresident  land."  Land  mortgaged  is  taxed  to  the  per- 
son in  possession.  The  loan  is  taxable  to  the  mortgagee,  but  the  land 
is  considered  as  that  of  the  mortgagor  until  the  mortgagee  takes  pos- 
session. (An  exception  in  regard  to  mortgages  held  by  savings  banks 
is  described  under  Corporation  taxes.) 

(2)  "  Personal  property,"  for  purposes  of  taxation,  includes  all  goods, 
chattels,  money,  and  effects  within  the  state  or  belonging  to  residents 
of  the  state:  all  vessels,  at  home  or  abroad;  all  obligations  for  money 
or  other  property;  money  at  interest,  and  debts  due  in  excess  of  those 
owed;  all  public  stocks  and  securities;  all  shares  in  moneyed  and  other 
corporations  within  or  without  the  state;  all  annuities  payable  to  the 
person  to  be  taxed  when  the  capital  of  such  annuity  is  not  taxed  in  this 
state. 

Stock  in  manufacturing  corporations  and  of  real  estate  corporations 
is  not  taxed,  but  the  buildings,  lands,  and  other  property  of  the  cor- 
porations are  taxed  to  the  corporations.  Sailing  vessels,  registered  or 
enrolled  under  laws  of  the  United  States  or  any  foreign  government  and 
owned  wholly  or  partly  by  inhabitants  of  the  state,  are  assessed  at  a 
value  of  $20  a  ton  gross  tonnage  when  new,  and  at  $  1  less  for  each  year 
for  seventeen  years;  thereafter  at  $3.  Rebuilt  vessels  are  taxed  at  the 
rate  for  one-half  their  age ;  those  repaired,  at  five-eighths  rate  for  their  age. 

(3)  Exemptions,  in  addition  to  all  public  property,  are:  The  prop- 
erty of  literary  and  charitable  institutions;  college",  within  certain  limi- 
tations; household  furniture  to  the  value  of  $200;  wearing  apparel; 
farming  utensils,  mechanic's  necessary  tools,  and  musical  instruments 
to  the  value  of  $15  per  family;  churches,  cemeteries,  parsonages  to 
the  value  of  $6,000,  and  personal  property  of  religious  associations  to 
the  value  of  $6,000;  mules,  horses,  neat  cattle,  swine,  and  sheep,  less 
than  6  months  old;  produce  in  hands  of  producer;  estates  of  poor  per- 
sons; the  works  of  any  water  company  which  furnishes  water  for  fii-es 
*rse  of  charge;  planted  forests  for  twenty  years;  mines  of  metal  for 
ten  years;  all  poultry  and  eggs. 

b.  Assessment. — The  assessment  made  up  by  the 
town  assessors  and  equalized  by  the  state  board  of 
assessors  remains  the  basis  of  state  and  county  taxes 
for  two  years.  The  assessment  refers  to  the  1st  of 
April.  Personal  property  Is  assessed  where  the  owner 
lives,  with  certain  exceptions,  as  of  property  used  in 
certain  kinds  of  business,  which  is  assessed  where 
situated.  Taxpayers  must  render  a  sworn  list  of  their 
property,  the  oath  covering  the.  values,  but  the  values 


712 


WEALTH,  DEBT,  AND  TAXATION. 


given  may  be  changed  by  the  assessors.  Failure  to 
render  a  statement  bars  all  rights  of  abatement  and 
appeal. 

Wild  lands  and  lands  in  unincorporated  places  are  assessed  biennially 
by  the  county  commissioners. 

Debts  owed  may  be  deducted  from  debts  due. 

Corporations,  except  certain  classes  which  pay  special  or  excise  taxes 
in  lieu  of  property  taxes,  are  generally  taxed  in  the  same  manner  as 
individuals. 

Stocks  of  any  bank  or  other  corporation  held  by  persons  out  of  the 
state,  except  of  manufacturing  and  real  estate  corporations,  are  assessed 
in  the  town  in  which  the  bank  or  corporation  transacts  its  business. 
The  town  has  a  lien  on  the  stocks  and  all  dividends  thereon  until  the  tax 
and  costs  of  collection  are  paid.  Stocks  of  domestic  and  national  banks 
are  taxed  to  the  owners  where  they  reside,  if  residents  of  the  state. 
(See  State  revenue-,  a,  IV,  below.) 

c.  Equalization. — The  valuation  of  real  and  per- 
sonal property  'on  which  the  state  and  county  taxes 
are  apportioned  and  levied  in  each  town  and  unorgan- 
ized township  is  finally  fixed  by  the  board  of  state 
assessors,  who  constitute  a  state  board  of  equalization. 
They  make  an  official  visit  to  each  county  in  the  state 
at  least  once  in  every  two  years,  and  personally  ex- 
amine the  town  assessors.  They  equalize  the  assess- 
ment list  of  each  town  in  accordance  with  the  full 
market  value  of  the  property.  There  is  no  equaliza- 
tion, so  called ,  between  individuals ;  this  is  accomplished 
by  abatements  made  by  the  assessors  after  the  taxes 
have  been  levied.  The  applicant  may  appeal  to  the 
county  commissioners  or  to  the  supreme  judicial  court 
of  the  county  when  an  abatement  is  refused  by  the 
assessor.  The  state  board,  may.  make  abatements 
arising  from  clerical  errors  in  its  own  assessments  or 
from  double  taxation. 

2.  Rate— 

The  rate  for  state  purposes  is  determined  each  year 
on  the  basis  of  the  amounts  needed  to  meet  the  appro- 
priations made  by  the  legislature,  and  the  sum  to  be 
raised  at  such  rate  is  apportioned  among  the  several 
towns  by  the  board  of  state  assessors,  and  such  appor- 
tionment is  ratified  by  the  legislature.  The  treasurer 
of  the  state  then  sends  warrants  to  the  town  assessors 
requiring  them  forthwith  to  assess  the  sum  apportioned 
to  their  town  or  place,  and  to  commit  their  assessment 
to  the  constable  or  collector  for  collection. 

A  tax  of  1  mill  per  dollar  is  assessed  annually  to  sup- 
port schools. 

3.  Collection — 

In  general,  all  taxes,  state  and  local,  except  excise 
taxes  and  those  on  corporations  and  wild  lands,  are 
collected  by  the  collectors  or  constables  of  the  several 
towns  and  paid  by  them  to  the  town  treasurers  who, 
upon  demand  made  by  warrant,  remit  the  town's  pro- 
portion of  the  state  tax  to  the  state  treasurer.  On  or 
before  the  1st  day  of  September  the  state  treasurer 
issues  his  warrants  and,  if  the  apportionments  are  un- 
paid sixty  days  after  the  time  at  which  they  are  due, 
he  may  require  the  sheriff  of  the  county  to  levy,  by 


distress  and  sale,  upon  the  real  and  personal  property 
of  any  of  the  inhabitants  of  the  town. 

If  any  person  refuses  to  pay  his  tax,  collectors  may 
distrain  him  by  any  of  his  goods  and  chattels,  not  ex- 
empt from  debt,  or,  if  for  twelve  days  after  demand,  a 
person  neglects  or  refuses  to  pay  a  tax,  or  to  show  suf- 
ficient goods  and  chattels  to  pay  it,  the  officers  may 
commit  him  to  jail. 

Liens  to  secure  the  payment  of  taxes  on  real  estate 
attach  as  of  April  1 ,  take  precedence  of  all  other  claims 
and  interest,  and  continue  until  the  taxes  are  paid. 
Such  liens  may  be  enforced  by  action  as  for  debt  and 
the  real  estate  may  be  attached  and  sold  on  execution 
issued  in  such  action. 

If  any  tax  assessed  on  real  estate  remains  unpaid  on 
the  first  Monday  in  December  in  the  year  succeeding 
the  year  in  which  the  tax  was  assessed,  the  collector 
may  sell  at  public  auction  as  much  of  the  land  as  is 
necessary  to  pay  the  tax. 

There  is  no  fixed  penalty  for  delinquency  in  taxes, 
but  interest  at  1  per  cent  per  month  is  added  after  the 
time  fixed  by  towns  for  payment. 

Warrants  for  state  taxes  on  wild  lands  are  sent  by  the  state  treasurer 
to  the  county  commissioners  of  organized  plantations.  They  appoint 
collectors,  who  transmit  the  taxes  collected  to  the  county  treasurer. 

II.  Poll  tax. 

A  poll  tax  is  assessed  upon  every  male  inhabitant 
of  the  state  above  the  age  of  2 1  years,  whether  a  citizen 
of  the  United  States  or  an  alien.  Indians,  persons  un- 
der guardians,  aged,  infirm,  and  poor  persons,  sol- 
diers under  state  pension  whose  property  is  less  than 
$500,  students  whose  homes  are  outside  the  state,  and 
soldiers  of  the  United  States  are  exempt. 

The  poll  tax  is  not  to  exceed  $3  and  is  not  to  be 
less  than  $1.  It  is  assessed  on  each  taxable  person  in 
the  place  where  he  resides  on  April  1.  The  assessors 
assess  on  taxable  polls  such  part  of  the  whole  sum  to 
be  raised  for  all  state,  county,  town,  plantation,  parish 
or  society  taxes  as  they  deem  expedient.  The  residue 
of  such  taxes  is  assessed  on  estates.  In  practice, 
therefore,  the  poll  tax  accrues  solely  to  the  benefit  of 
the  towns. 

III.  Inheritance  tax. 

Each  share  in  any  property  within  the  jurisdiction 
of  the  state,  whether  belonging  to  inhabitants  of  the 
state  or  not,  which  passes  by  will  or  by  the  intestate 
laws  of  the  state,  or  by  deed,  sale,  or  gift  to  take  effect 
in  possession  after  the  death  of  the  grantor,  other  than 
to  the  father,  mother,  husband,  wife,  lineal  descendant, 
adopted  child,  son-in-law,  or  daughter-in-law,  or  to  any 
religious,  educational,  or  charitable  institution,  is  sub- 
ject to  a  tax  of  4  per  cent  of  its  value  above  the  sum  of 
$500.     This  tax  is  for  the  use  of  the  state. 

IV.  Corporation  taxes. 

Corporations  are,  in  general,  subject  to  the  general 
property  tax  for  state  and  local  purposes.     But  all  do- 


TAXATION  AND  REVENUE  SYSTEMS— MAINE. 


713 


mestic  corporations  pay  a  special  franchise  tax  and 
certain  specified  corporations  and  businesses  pay  an 
"excise  tax"  in  lieu  of  all  taxes  on  property  necessarily 
used  in  the  business.  The  excise  tax  is  not  strictly  a 
state  tax,  as  cities  or  towns  in  -..hich  stockholders  re- 
side receive  an  amount  equal  to  1  per  cent  on  the  value 
of  the  stock  so  held  in  the  case  of  railroad,  telegraph, 
telephone,  and  certain  other  companies. 

Domestic  corporations  pay  an  annual  franchise  tax  at  the  follow- 
ing rates:  If  authorized  capital  is  less  than  $50,000,  $5;  $50,000  to 
$200,000,  $10:  $200,000  to  $500,000,  $25;  $500,000  to  $1,000,000,  $50; 
and  on  each  additional  $1,000,000 or  fraction  thereof,  $25.  This  tax  is 
for  the  benefit  of  the  state. 

Railroads  pay  an  annual  excise  tax  based  upon  the  gross  receipts 
from  transportation.  The  tax  is  assessed  by  the  state  board  of  assessors 
upon  the  basis  of  returns  made  to  the  railroad  commission.  Gross  ro- 
se pis  are  defined  as  the  average  receipts  per  mile  for  the  entire  system 
multiplied  by  the  number  of  miles  in  the  state.  The  rates  are :  On  gross 
receipts  less  than  $1,500  per  mile,  one-half  of  1  per  cent;  on  gross  re- 
ceipts from  $1,500  to  $2,000  per  mile,  three-fourths  of  1  per  cent :  and  for 
each  additional  $500  or  part  thereof,  one-fourth  of  1  per  cent  additional 
up  to  4  per  cent.  The  tax  is  not  entirely  a  state  tax,  as  each  city  or 
town  in  which  any  stock  in  the  railroads  is  held  is  entitled  to  an  amount 
equal  to  1  per  cent  on  the  value  of  such  stock  as  determined  by  the  state 
board  of  assessors;  provided,  the  total  receipts  from  this  source  are  suffi- 
cient to  cover  such  payments.  The  tax  is  payable  in  two  installments, 
one-half  on  July  1  and  one-half  on  October  1 ,  and  is  collected  by  the 
state  treasurer.  The  ''excise  tax,"  together  with  the  municipal  tax  on 
all  buildings  and  on  land  and  fixtures  outside  the  right  of  way,  are  in 
lieu  of  all  other  taxes  on  the  property  or  the  capital  stock.  The  cost  of 
maintaining  the  railroad  commission  is _  also  apportioned  among  the 
railroads  in  proportion  to  their  gross  receipts. 

Street  railroads  are  taxable  as  other  railroads,  but  the  rates  are: 
On  average  gross  receipts  of  $1 ,000  per  mile  or  less,  three-twentieths  of 
1  per  cent,  and  for  every  increase  of  $1,000  per  mile  or  part  thereof, 
three-twentieths  of  1  per  cent  additional. 

Seeping  car  and  other  car  companies  charging  extra  fares  pay  an 
excise  tax  of  4  per  cent  of  the  gross  receipts  in  the  state  in  lieu  of  all 
other  taxes  on  cars  and  equipment. 

Telegraph  and  telephone  companies  are  required  to  pay  into  the 
state  treasury  an  annual  excise  tax  on  gross  receipts  at  the  following 
rates:  When  the  gross  receipts  exceed  $1,000  and  do  not  exceed  $5,000, 
one-fourth  of  1  per  cent;  when  they  exceed  $5,000  and  do  not  exceed 
$10,000,  1$  per  cent:  when  they  exceed  $10,000  and  do  not  exceed 
$25,000,  1J  per  cent:  when  they  exceed  $25,000  and  do  not  exceed 
$50,000,  2  per  cent;  and  for  each  additional  $25,000,  one-fourth  of  1  per 
cent  up  to  a  maximum  of  4  per  cent.  The  tax  must  be  paid  by  Septem- 
ber 1  and  is  a  lien  on  the  property  and  franchises.  Each  town  in  which 
any  stockholder  or  partner  resides  receives  from  the  amount  paid  into 
the  stnt  e  treasury  an  amount  equal  to  1  percent  of  the  value  of  the  stock 
or  shares  there  held  as  determined  by  the  board  of  state  assessors,  but  the 
total  so  paid  over  must  not  exceed  the  receipts  of  the  state.  This  tax  is 
in  lieu  of  all  other  taxes  except  those  on  real  estate  and  on  personal  prop- 
erty not  essential  to  the  business,  which  are  taxed  as  property  generally 
is  taxed. 

Express  companies  pay  an  excise  tax  of  2  per  cent  of  the  gross 
receipts  of  business  done  in  the  state  for  the  year  ending  April  1.  Busi- 
ness done  in  the  state  includes  a  proportional  part  of  all  express  coming 
into  or  going  out  of  the  state,  but  not  goods  in  transit  through  the  state. 
This  tax  must  be  paid  by  September  1  and  is  in  place  of  all  local  taxation, 
except  that  real  estate  owned  by  such  corporations  is  taxed  in  the  munic- 
ipality where  situated,  but  taxes  so  levied  on  real  estate  used  in  express 
business  are  deducted  by  the  state  assessors  from  the  excise  tax. 


Domestic  life  insurance  companies  are  taxed  at  the  rate  of  2  per 
cent  upon  all  premiums  recei  ved  from  residents  of  the  state  after  deduct- 
ing all  dividends  paid  to  policy  holders  in  the  state.  They  also  pay  a  tax 
cf  one-half  of  1  per  cent  a  year  on  the  surplus  after  deducting  the  value  of 
the  real  estate  in  this  state,  which  is  taxed  by  the  municipality  in  which 
it  is  situated. 

All  other  life  insurance  companies,  surety  companies,  and  credit 
and  title  insurance  companies  pay  an  annual  tax  upon  all  premiums 
received  on  contracts  made  in  the  state,  at  the  rate  of  1 J  per  cent  a  year. 
The  tax  is  computed  on  the  net  amount  of  premiums  actually  received. 
Foreign  insurance  companies  must  pay  the  same  tax  as  their  home  state 
imposes  on  Maine  insurance  companies  doing  business  there,  if  greater 
than  the  above. 

Savings  banks  incorporated  in  the  state  are  taxed  upon  their  sev- 
eral franchises,  assessed  by  the  board  of  state  assessors.  From  the  average 
amount  of  deposits,  reserve  fund,  and  undivided  profits  there  is  deducted 
an  amount  equal  to  the  value  of  the  United  States  bonds,  the  shares  of 
corporation  stocks  such  as  are  by  the  law  of  this  state  free  from  taxation 
to  the  stockholders,  and  the  assessed  value  of  the  real  estate  owned  by 
the  bank  and  two-fifths  of  the  value  of  such  other  assets  as  are  invested 
in  the  state,  including  mortgages.  The  difference  is  considered  the  value 
of  the  franchise.  Upon  the  value  of  the  franchises  so  ascertained  the 
board  of  state  assessors  assesses  an  annual  tax  of  five-eighths  of  1  per  cent. 
One-half  is  assessed  by  the  15th  of  June  and  one-half  by  the  15th  of 
December,  and  payable  within  ten  days  thereafter.  All  deposits  in  sav- 
ings banks  are  excluded  from  municipal  taxation  to  the  bank  or  to  the 
depositor,  but  real  estate  owned  by  the  bank  and  not  held  as  collateral 
security  may  be  taxed  by  the  town  in  which  it  is  located. 

Loan  and  building  associations  pay  a  tax  of  one-fourth  of  1  per 
cent  a  year  on  the  amount  of  the  monthly  capital  dues  paid  in  by  stock- 
holders. It  is  assessed  and  payable  semiannually.  Capital  dues  are 
excluded  from  municipal  taxation  to  the  corporation  or  to  the  share- 
holder, but  real  estate  not  held  as  collateral  security  is  taxable  by  the 
town  in  which  it  is  located. 

Branches  or  agencies  of  foreign  banking  companies  not  national 
pay  a  tax  of  three-fourths  of  1  per  cent  a  year  on  the  amount  of  business 
done  in  the  state.  This  is  computed  by  taking  the  daily  average  for  each 
month  of  a  six  months' period  of  all  money  outstanding  upon  loans  and 
employed  in  the  business,  and  then  dividing  the  aggregate  of  such 
monthly  averages  by  the  number  of  months  covered.  The  tax  so  ascer- 
tained is pjaid  to  the  state  treasurer  semiannually. 

Every  domestic  trust  and  banking  company  pays  a  tax  of  one- 
half  of  1  per  cent  on  the  average  amount  of  interest  and  time  deposits 
ascertained  by  six  months'  periods.  The  value  of  United  States  bonds 
and  shares  of  stocks  free  from  taxation  to  stockholders  is  deducted. 

All  such  deposits  are  excluded  from  municipal  taxation  to  the  com- 
pany or  the  depositor. 

In  case  any  corporation  fails  to  make  returns  required,  the  board  of 
state  assessors  may  make  such  assessment  as  it  thinks  just.  Corpora- 
tion taxes,  with  interest  at  10  percent,  may  be  recovered  in  an  action  of 
debt  in  the  name  of  the  state. 

V.  Business  taxes  and  licenses. 

The  following  licenses  are  annual,  unless  otherwise 
stated: 

Itinerant  vendors,  $25,  collected  by  the  secretary  of  state;  resident 
guides,  $1 ;  nonresident  guides,  $20,  to  commissioners  of  inland  fisheries 
and  game.  Undertakers,  $1  for  registration,  $5  for  examination;  den- 
tists, $20  for  examination;  physicians  and  surgeons,  $10  for  examina- 
tion; there  are  no  liquor  licenses;  goods  sold  at  auction  for  benefit  of 
parties  residing  out  of  the  state,  2\  per  cent  of  gross  sales;  restaurants 
and  hotels,  $1;  bowling  alleys,  billiard  tables,  etc.,  $10;  auctioneers,  $2; 
hawkers  and  peddlers,  issued  by  the  secretary  of  state — for  towns  of 
not  over  1,000  inhabitants,  $3;  for  towns  of  from  1,000  to  2,000  inhabi- 


714 


WEALTH,  DEBT,  AND  TAXATION. 


tants,$6;  forevery  1,000  over2,000  inhabitants,  $2;  in  no  case  over  $20. 
To  hunt  deer,  $5;  private  detective,  $50.  Dogs — clerks  of  towns  issue 
licenses  and  receive  fees  which  are  to  be  paid  into  the  state  treasury — 
$1.15  for  each  male,  $3.15  for  fertile  females,  $10  to  $20  for  kennel 
licenses.  This  fund  is  used  by  the  state  for  the  reimbursement  of  the 
amount  paid  by  towns  for  damages  done  by  dogs,  and  the  remainder  is 
credited  to  towns  upon  their  state  tax. 

B.    FEES. 

To  secretary  of  state. — For  certificate  under  seal  of  state,  $1;  filing 
certificate  of  trade  mark,  $3;  filing  certificate  of  incorporation,  $5;  fil- 
ing certificate  of  insurance  company,  $20;  certificate  of  increase  of  capi- 
tal stock  of  insurance  company,  $10. 

To  attorney-general. — For  certificate  of  approval,  $5. 

To  bank  examiner. — License  to  foreign  banking  company,  $20. 

To  treasurer  of  state. — Certificate,  $5. 

To  insurance  commissioner. — Certificate,  $20. 

To  steamboat  inspectors. — For  each  inspection,  $5. 

County  Revenues. 

A.    TAXES. 

I.  The  general  property  tax. 

1.  Base — 

The  property  included  and  the  method  of  assess- 
ment and  of  equalization  are  the  same  for  the  county 
tax  as  for  the  state. 

2.  Rate- 
In  order  to  assess  a  county  tax,  county  commis- 
sioners prepare  estimates  of  expenses  for  one  year  and 
also  for  the  succeeding  year,  and  the  county  tax  for 
both  years  is  granted  by  the  legislature.  The  county 
commissioners  then  apportion  the  tax  so  authorized 
among  the  towns  within  the  county  according  to  the  last 
state  valuation. 

3.  Collection — 

Collection  is  as  for  the  state  tax. 

II.  Poll  taxes. 

See  State  poll  tax. 

III.  IV,  and  V.  Inheritance  tax,  corporation  taxes,  and 
business  taxes  and  licenses. 

There  is  no  inheritance  tax,  neither  are  there  any 
special  corporation  taxes  or  business  taxes  and  licenses 
for  county  purposes. 

C.    FINES    AND    PENALTIES. 

All  fines,  forfeitures,  and  costs  in  criminal  cases,  also 
fees  and  earnings  of  county  officers,  are  paid  into  the 
treasury  of  the  county  in  which  the  offense  is  prose- 
cuted for  the  use  of  such  county. 


Municipal  Revenues.^ 

A.    TAXES. 

I.  The  general  property  tax. 

1.  Base — 

The  property  included  and  the  methods  of  assess- 
ment and  equalization  have  been  described  under  State 
revenues.  The  estates  of  residents  of  islands  where 
there  are  no  roads  may  be  exempt  from  the  highway 
tax. 

2.  Rate— 

The  sum  to  be  assessed  must  be  raised  by  vote  at  the 
town  meeting  and  is  assessed  on  estates  according  to 
their  value. 

3.  Collection — 

Collection  is  made  in  the  same  manner  as  has  been 
described  under  State  taxes. 

II.  Poll  tax. 

The  town  assessors  assess  on  taxable  polls  such  part 
of  the  whole  sum  of  state  and  county  taxes  to  be  raised 
as  they  deem  expedient.     (See  State  poll  tax.) 

III.  Inheritance  tax. 

The  inheritance  tax  is  strictly  a  state  tax. 

IV.  Corporation  taxes. 

For  the  way  in  which  towns  participate  in  the  special 
taxes  on  corporations,  see  State  taxes,  IV. 

V.  Business  taxes  and  licenses. 

Municipal  officers  may  license  public  exhibitions  and  places  of  amuse- 
ment and  require  such  fees  as  they  think  proper. 

Itinerant  vendors  pay  on  their  stock  at  the  last  town  tax  rate;  auc- 
tioneers, $2  per  annum;  auction  sales,  2 J  per  cent  of  the  gross  amount; 
bowling  alleys  and  billiard  rooms,  $10  per  annum;  wharves  and  fish 
weirs,  $5  per  annum ;  employment  agencies,  $1  per  annum;  merry-go- 
rounds,  not  over  $50  per  annum;  taxidermists,  $5  per  annum;  milk 
vendors,  $1  per  annum;  public  carriages,  tax  varies. 

School  Revenues. 

All  special  school  districts  have  been  abolished,  but 
the  school  trustees  of  any  town  submit  estimates  to 
the  school  committee  and  receive  such  portion  of  the 
common  school  fund  as  the  committee  shall  determine. 

Church  Taxes. 

Every  parish  wt  its  meeting  may  raise  money  for  the 
support  of  ministers  of  religion  and  churches  and  assess 
and  collect  the  money  like  state  taxes.  No  person  is 
a  member  of  a  parish  or  religious  society  without  his 
consent. 


TAXATION  AND  REVENUE  SYSTEMS— MARYLAND. 


715 


MARYLAND.1 


The  revenue  system  of  Maryland  consists  of,  first, 
the  general  property  tax,  which  is  distinguished  by  the 
endeavor  to  reach  all  classes  of  property,  and  notably 
by  the  taxation  of  intangible  evidences  of  debt,  such 
as  the  capital  stock  of  corporations,  bonds,  public  debt, 
notes,  claims,  and  certificates  of  indebtedness  of  indi- 
viduals or  firms;  second,  an  extensive  system  of  license 
taxes;  third,  a  group  of  special  corporation  taxes, 
notably  upon  gross  receipts;  fourth,  an  inheritance 
tax;  and  fifth,  a  tax  on  commissions  of  officers,  exec- 
utors, etc. 

Railroad  property  is  to  be  taxed  for  county  and  city 
purposes  like  the  property  of  individuals,  but  is 
exempted  from  state  taxes  other  than  that  upon  gross 
receipts.  Railroad  stock  is  not  taxed.  There  is  no 
tax  upon  personal  property  of  corporations  taxed  on 
their  capital  stock. 

Poll  taxes  are  forbidden  by  the  constitution. 

Special  provisions  for  the  several  counties  and  cities 
are  contained  in  a  code  of  public  local  laws,  which  are 
not  herein  treated. 

CONSTITUTIONAL    PROVISIONS. 

ARTICLE  XIV. 

That  no  aid,  charge,  tax,  burthen  or  fees  ought  to  be  rated,  or  levied, 
under  any  pretence,  without  the  consent  of  the  legislature. 

ARTICLE   xv. 

That  the  levying  of  taxes  by  the  poll  is  grievous  and  oppressive,  and 
ought  to  be  prohibited;  that  paupers  ought  not  to  be  assessed  for  the 
support  of  the  government;  but  every  person  in  the  state,  or  person 
holding  property  therein,  ought  to  contribute  his  proportion  of  public 
taxes  for  the  support  of  the  government,  according  to  his  actual  worth 
in  real  or  personal  property;  yet  fines,  duties  or  taxes  may  properly  or 
justly  be  imposed,  or  laid  with  a  political  view  for  the  good  government 
and  Iwjnefit  of  the  community. 

ARTICLE   III. 

Sec.  33.  The  generar.assembly  shall  not  pass  local  orspecial  laws  in  any 
of  the  following  cases:  *  *  *  For  extending  the  time  for  the  col- 
lection of  taxes. 

Sec.  34.  No  debt  shall  be  hereafter  contracted  by  the  general  assem- 
bly unless  such  debt  shall  be  authorized  by  a  law  providing  for  the  col- 
lection of  an  annual  tax  or  taxes  sufficient  to  pay  the  interest  on  such 
debt  as  it  falls  due,  and  also  to  discharge  the  principal  thereof  within 
fifteen  years  from  the  time  of  contracting  the  same. 

Sec.  51.  The  personal  property  of  residents  of  this  state  shall  be  sub- 
ject to  taxation  in  the  county  or  city  where  the  resident  bona  fide  resides 
for  the  greater  part  of  the  year  for  which  the  tax  may  or  shall  be  levied 


'This  compilation  is  derived  mainly  from  the  following  sources: 

The  Maryland  Code,  Public  General  Laws,  codified  by  J.  P.  Poe; 
King  Brothers,  Baltimore,  1904. 

The  Maryland  Code,  Public  Local  Laws,  adopted  by  the  General 
Assembly,  March  18,  1888:  Baltimore,  1888.  (See  Appendix  to  the 
Code  of  1904  of  General  Laws.) 

Session  Laws  of  the  General  Assembly,  1888  to  1902. 

Some  assistance  was  had  from  Taxation  in  Maryland,  by  Thomas 
Sewall  Adams.  Johns  Hopkins  University  Studies  in  Historical  and 
Political  Science.     Vol.  XVIII:  Baltimore,  1900. 


and  not  elsewhere,  except  goods  and  chattels  permanently  located, 
which]  shall  be  taxed  in  the  city  or  county  where  they  are  so  located, 
but  the  general  assembly  may  by  law  provide  for  the  taxation  of  mort- 
gages upon  the  property  in  this  state  and  the  debts  secured  thereby  in 
the  county  or  city  where  such  property  is  situated. 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation  are : 

(1)  Assessors  at  large,  appointed  by  the  governor,  two  for  each  assess- 
ment district  of  the  county. 

(2)  District  assessors,  appointed  by  the  county  commissioners,  one 
for  each  election  district. 

(3)  County  board  of  control  and  review,  composed  of  the  boards  of 
county  commissioners  of  the  several  counties. 

(4)  Boards  of  control  and  review  in  Baltimore,  appointed  by  the 
governor  for  groups  of  wards. 

(5)  Appeal  tax  court  of  Baltimore  city — three  persons  appointed 
annually  by  the  mayor  and  city  council. 

(6)  County  collector,  appointed  by  the  county  commissioner. 

(7)  State  tax  commissioner,  appointed  by  the  governor,  comptroller, 
and  treasurer  for  a  term  of  four  years. 

State  Revenues. 

a.    TAXES. 

I.    The  general  property  tax. 
1.  Base — 
a.   The  property  included  and  exempt. — All  property 
of  every  kind,  nature,  and  description  within  the  state, 
except  as  specially  exempted,  is  subject  to  assessment 
for  state,  county,  and  municipal  taxation. 

(1)  and  (2)  There  is  no  definition  or  classification  of  "real"  or  "per- 
sonal" property  for  purposes  of  taxation.  Certain  subjects  are 
specially  enumerated. 

All  certificates  of  indebtedness  issued  by  any  state,  count}',  public 
corporation,  or  foreign  country  are  subject  to  taxation;  also  all  bonds 
of  any  state  or  corporation  belonging  to  residents,  and  all  investments 
in  private  securities. 

Corporations  are  in  general  taxed  upon  real  estate,  and  the  stock  and 
bonds  of  the  corporation;  there  is  no  tax  on  their  personal  property 
except  in  the  case  of  corporations  not  taxable  on  their  stock;  where 
there  is  no  capital  stock,  the  property  and  assets  of  the  company,  real 
and  personal,  are  subject  to  assessment. 

The  property,  real  and  personal,  of  railroad  companies  is  subject  to 
assessment  only  for  county  and  municipal  purposes. 

All  bonds  or  certificates  of  indebtedness  bearing  interest  issued  by  any 
railroad  or  other  corporation  of  the  state,  held  by  residents  and  secured 
by  mortgage  on  property  wholly  within  this  state,  are  taxed  to  the 
owners. 

(3)  Exemptions,  in  addition  to  public  property,  are:  Judgments 
rendered  by  court  of  record  or  justices  of  the  peace;  churches  with  fur- 
niture and  parsonages;  cemeteries;  crops  in  the  hands  of  the  producer; 
provisions  and  fuel  for  the  use  and  consumption  of  the  family;  working 
tools  of  mechanics  and  artisans;  the  first  $300  worth  of  farming  imple- 
ments; wearing  apparel;  fish  in  the  possession  of  fishermen;  hospitals; 
asylums:  charitable  and  benevolent  institutions;  libraries;  educational 
and  literary  institutions;  the  personal  property  of  corporations  having 
capital  stock  divided  into  shares  which  are  subject  to  taxation  in  this 
state;  the  shares  of  stock  of  railroad  companies  subject  to  taxation  upon 
their  gross  receipts  within  the  state,  and  to  county  and  municipal  taxa- 
tion upon  their  real  and  personal  property  in  the  counties  and  cities  of 


716 


WEALTH,  DEBT,  AND  TAXATION. 


the  state;  the  book  accounts  of  merchants  taxed  on  the  fair  average 
value  of  goods,  wares,  and  merchandise  in  stock;  real  property  pur- 
chased by  survivors  of  the  late  war  for  erection  of  monuments  and 
parks,  up  to  fifteen  acres;  and  persons  assessed  for  less  than  $100. 

h.  Assessment. — The  counties  are  divided  into  as- 
sessment districts,  which  are  composed  of  the  election 
districts.  In  assessing  the  property  in  each  election 
district  the  assessors  at  large  act  with  the  assessor  of 
the  election  district.  The  assessors  require  of  the  tax- 
payers under  oath  a  schedule  of  real  and  personal 
property,  with  the  value  thereof.  Failure  to  furnish  a 
schedule  is  penalized  by  doubling  the  taxes  for  the 
first  year.  False  return  is  punishable  as  perjury  by  a 
fine  of  $500  or  by  two  years'  imprisonment. 

Property  is  to  be  valued  at  its  full  cash  value  and 
not  as  at  a  forced  sale  value. 

The  fundamental  assessment  was  made  in  1896,  but 
biennial  revision  of  the  assessment  is  provided  for. 
The  boards  of  county  commissioners  and  the  appeal 
tax  court  of  Baltimore  are  directed  to  revise  all  valua- 
tions of  real  property  and  to  require  a  biennial  listing 
as  in  1896  of  personal  property.  The  boards  are  to 
appoint  the  necessary  assessors.  The  appeal  tax  court 
of  the  city  of  Baltimore  has  powers  to  assess  all 
property  and  to  make  a  general  revision  of  all  property 
at  least  once  in  every  five  years. 

Banks,  state  and  national,  and  other  incorporated  institutions,  corpo- 
rations, and  juint-stock  companies  are  assessed  locally  on  their  real 
estate. 

Shares  of  stock  in  corporations  owned  by  residents  and  nonresidents 
are  assessed  for  taxation  and  the  taxes  collected  from  the  corporation, 
which  may  charge  them  to  the  account  of  the  shareholders.  The  reve- 
nue laws  treat  the  stockholders  as  the  owners  of  so  much  property,  to 
be  estimated  by  the  actual  value  of  the  stock.  The  capital  stock  of  the 
corporation  is  the  representation  of  its  property.  The  state  does  not 
tax  both  the  capital  stock  and  the  property  represented  by  it.  The 
valuation  is  made  by  the  state  tax  commissioner  on  the  basis  of  reports 
from  the  corporation.     (Railroad  shares  are  not  taxable.) 

The  taxable  value  of  shares  of  stock  is  ascertained  by  the  state  tax 
commissioner  by  deducting  from  the  aggregate  value  of  the  shares  of  the 
banks,  corporations,  or  joint-stock  companies  the  assessed  value  of  their 
real  estate  and  dividing  the  remainder  by  the  number  of  shares. 

The  state  tax  commissioner  is  required  to  certify  to  the  county  com- 
missioners of  the  county  where  any  shareholders  reside.  Shares  held  by 
nonresidents  are  taxable  for  county  and  municipal  purposes  where  the 
bank  or  company  is  situated. 

All  shares  of  stock  in  any  bank  (other  than  national)  or  in  any  corpo- 
ration of  any  other  state  or  county  arc  to  be.  valued  at  their  actual  mar- 
ket value.  Those  on  which  no  dividend  is  paid  are  not  to  be  valued  at 
all. 

On  such  valuation  the  regular  rate  for  state  purposes  is  to  be  paid,  and 
also  30  cents  upon  each  $100  for  county,  city,  and  municipal  taxation 
where  the  owner  resides. 

All  bonds  or  other  evidences  of  debt  issued  by  any  corporation,  public 
or  private,  foreign  or  domestic  (except  the  state  of  Maryland),  are  to  be 
assessed  at  their  actual  value  in  the  market  and  taxed  at  the  same  rate 
as  foreign  stock  (supra). 

The  public  debt  of  the  state,  stock  loans  of  the  city  of  Baltimore,  the 
capital  stock  and  bonds,  certificates  or  other  evidences  of  debt,  interest 
bearing,  issued  by  incorporated  companies  of  the  state  are  to  be 
assessed  for  state  taxes. 

Stock  debt  of  the  state,  or  of  the  city  of  Baltimore,  or  shares  in  any 
bank  or  other  corporation  of  the  state  on  which  the  state  and  county  or 


city  taxes  are  levied  are  to  be  allowed  as  a  credit  in  the  assessment  of 
capital  stock  or  the  assets  of  companies  without  capital  stock.  So 
also  the  proportionate  amount  of  the  value  of  tools  and  machinery  is 
deducted  in  the  valuation  of  shares  when  such  articles  of  manufac- 
ture are  exempted  from  taxation. 

State  tax  on  public  debt  of  the  state. — The  treasurer  is  required  to 
levy  state  taxes  on  all  the  public  debt  of  the  state  held  by  any  person, 
resident  or  nonresident,  assessed  at  the  following  valuation:  Debt  bear- 
ing interest  at  6  per  cent,  at  par;  interest  at  5  per  cent,  $85  on  $100; 
interest  at  4$  per  cent,  $80  on  $100;  interest  at  3  per  cent,  $6.5  on  $100. 
The  tax  is  collected  by  retaining  it  out  of  the  interest  falling  due  on 
the  1st  day  of  July  in  each  year. 

State  taxes  are  also  levied  on  Baltimore  city  loans  on  which  interest 
js  payable. 

Certificates  of  indebtedness  issued  by  any  individual  or  firm  are  to  be 
assessed  according  to  the  rate  of  interest  stipulated;  Interest  6  per  cent, 
at  50  per  cent  of  face  value;  interest  5  per  cent,  at  41f  per  cent  of  face 
value;  interest  4 \  per  cent,  at  37 J  per  cent  of  face  value;  interest  4  per 
cent,  at  33$  per  cent  of  face  value;  interest  3$  per  cent,  at  29,',  per  cent 
of  face  value;  interest  3  per  cent,  at  25  per  cent  of  face  value;  interest 
other  percentages,  at  corresponding  valuations. 

Failure  to  list  bonds,  notes,  claims,  or  other  evidences  .of  debt  is 
penalized  by  forbidding  action  at  law  or  equity  thereon  until  the  tax  is 
paid,  with  an  addition  of  50  percent  per  annum  where  there  is  an  inten- 
tion to  evade  the  taxes. 

Mortgagors  are  assessed  for  real  estate  at  its  actual  value,  without 
regard  to  the  mortgage  lien.  Covenants  for  the  mortgagor  to  pay  the 
taxes  on  the  mortgage  debt  are  unlawful. 

Distilled  spirits  are  assessed  as  personal  property.  Report  is  to  be 
made  on  January  1  to  the  state  tax  commissioner,  who  fixes  the  value. 
Where  the  distiller  is  a  corporation,  the  spirits  are  treated  as  distinct 
from  the  capital  stock.  The  valuation  is  transmitted  to  the  counties  for 
local  taxation. 

c.  Equalization. — The  several  boards  of  county 
commissioners  acting  as  boards  of  control  and  review, 
and  the  same  boards  in  Baltimore  city,  hear  appeals 
from  the  assessments  and  may  abate,  lessen,  or  increase 
the  valuations  returned,  assess  omitted  property,  and 
correct  the  returns.  Their  proceedings  are  super- 
vised by  the  state  tax  commissioner. 

2.  Rate— 

The  county  commissioners  of  the  several  counties 
and  the  mayor  and  city  council  of  Baltimore  were  in 
1902  directed  to  levy  the  state  taxes  as  follows: 

Ten  and  one-half  cents  on  each  $100  for  schools ;  1 J  cents  on  each  $100 
for  books  for  schools;  one-half  of  1  cent  on  each  $100  for  sinking  fund, 
various  loans;  one-eighth  of  1  cent  on  each  $100  for  sinking  fund, 
various  loans;  one-half  of  1  cent  on  each  $100  for  sinking  fund;  2}  cents 
on  each  $100  for  sinking  fund;  three-fourths  of  1  cent  on  each  $100  for 
.new  loan. 

The  comptroller  of  the  treasury  levies  the  same 
state  taxes  on  shares  of  capital  stock  of  all  banks, 
incorporated  institutions,  and  companies  of  the  state. 

3.  Collection — 

Taxes  are  collected  by  the  county  collectors,  who 
are  compensated  by  a  percentage  of  the  amount  of 
their  collections.  If  taxes  are  paid  by  the  1st  day  of 
September  of  the  year  in  which  they  are  levied,  a 
deduction  of  5  per  cent  may  be  made;  if  paid  before 
October  1,  there  is  a  deduction  of  4  per  cent;  if 
paid  before  November  1,  one  of  3  per  cent.  All 
state,  county,  and  municipal  taxes  are  liens  on  the 


TAXATION  AND  REVENUE  SYSTEMS —MARYLAND. 


T7 


real  estate  of  the  taxpayer  from  the  time  of  levy,  and 
are  considered  in  arrears  on  the  1st  day  of  January 
and  bear  interest  at  6  per  cent.  Collection  may  be 
enforced  by  distraint  of  personalty  or  sale  of  realty. 

II.  Poll  tax. 

There  are  no  poll  taxes,  as  they  are  forbidden  by 
the  constitution. 

III.  Inheritance  tax. 

All  estates,  real  and  personal,  passing  from  any 
person  who  may  die  seized  and  possessed  thereof,  or 
by  transfer  intended  to  take  effect  after  the  death  of 
the  donor,  other  than  to  the  father,  mother,  husband, 
wife,  child,  or  lineal  descendant  of  the  decedent  are 
subject  to  a  tax  of  2i  per  cent  on  every  $100  of  clear 
value  over  $500. 

IV.  Corporation  taxes. 

The  line  of  demarcation  between  the  special  corpora- 
tion taxes  and  the  general  property  tax  is  not  so  clear 
in  Maryland  as  in  most  of  the  other  states.  The  tax 
on  the  capital  stock  of  corporations  has  been  included 
above  under  the  general  property  tax,  because  it 
seemed  to  be  a  substitute  for  the  taxation  of  the  stock 
to  the  stockholders,  but  that  classification  is  somewhat 
arbitrary.  The  taxes  on  corporations  that  savor  less 
of  the  general  property  tax  are:  The  bonus  on 
capital  stock — a  tax  which  is  closely  analogous  to 
the  fees  for  incorporation  charged  in  most  of  the  other 
states;  the  franchise  tax  on  corporations;  the  tax  on 
gross  receipts  of  various  corporations;  and  the  taxes 
on  insurance  companies. 

Bonus  on  capital  stock. — Every  corporation  incorporated  under 
any  general  or  special  law  of  the  state,  except  cemetery  companies, 
companies  for  purely  benevolent  and  charitable  purposes,  railroad 
companies,  and  building  and  homestead  associations,  is  required  to  pay 
to  the  state  treasurer  a  bonus  of  one-eighth  of  1  per  cent  on  the  author- 
ized capital  stock.  The  bonus  on  the  original  capital  is  due  upon  incor- 
poration and  on  the  increase  upon  the  recording  of  the  certificate. 

The  franchise  tax  on  savings  banks. — Every  savings  bank  is 
required  to  pay  annually  a  franchise  tax  to  the  amount  of  one-fourth 
of  1  per  cent  on  the  total  deposits.  Three-fourths  of  the  tax  go  to  the 
county  where  the  bank  is  located  and  one-fourth  to  the  state.  The 
real  property  of  the  bank  is  liable  to  assessment,  but  not  the  deposits. 
Failure  to  make  reports,  or  the  making  of  false  reports,  subjects  the 
officer  of  the  bank  to  indictment  and  fine. 

The  tax  on  gross  receipts. — A  franchise  tax  of  1  per  cent  per 
annum  is  levied  upon  the  gross  receipts  of  all  oil  pipe-line  companies 
and  all  title  insurance  companies;  a  tax  of  three-fourths  of  1  per  cent 
upon  the  annual  gross  receipts  of  electric  light  companies;  1$  per  cent 
of  gross  receipts  of  electric  construction  and  gas  companies  and  every 
foreign  guano,  phosphate,  or  fertilizer  company.  The  gross  receipts 
tax  on  corporations  is  due  on  July  1.  There  are  like  penalties  foi 
failure  to  pay  and  make  report  as  on  railroads.  Associations,  partner- 
ships, and  individuals  engaged  in  these  lines  of  business,  except  that  of 
guano,  phosphate,  and  fertilizer  companies,  are  subject  to  the  gross 
receipts  tax.  Parlor,  palace,  and  sleeping  car  companies  are  taxed  at 
the  rate  of  2  per  cent  upon  the  total  gross  receipts  from  business  done 
in  the  state.  Failure  to  pay  for  sixty  days  subjects  the  company  to  a 
penalty  of  10  per  cent.  Telegraph,  cable,  express,  transportation,  tele- 
phone, safe  deposit,  trust,  guaranty,  and  fidelity  companies  also  pay 
2  per  cent  on  gross  receipts  from  business  in  the  state. 


Franchise  tax  on  railroads. — Railroads  are  taxed  for  state  purposes 
upon  their  gross  earnings,  in  lieu  of  any  other  state  tax  on  property  or 
capital  stock.  But  railroads  pay  county  and  municipal  taxes  on  real 
and  personal'propertv.  The  rate  of  tax  is  graduated  according  to  the 
gross  earnings  per  mile  of  line:  Eight-tenths  of  1  per  cent  on  the  first 
$1,000  per  mile;  1J  per  cent  on  the  first  $1,000  to  $2,000  per  mile;  2  per 
cent  on  the  first  earnings  above  $2,000  per  mile.  The  tax  is  payable 
July  1 ,  annually.  Failure  to  make  report  of  gross  earnings  subjects  the 
responsible  officer  of  the  corporation  to  forfeiture  of  $500  to  the  state. 
Default  of  payment  for  one  month  is  penalized  5  per  cent. 

Taxes  onj  insurance  companies. — Foreign  insurance  companies — 
License  tax,  $300;  one-half  of  1  per  cent  per  annum  on  premiums  col- 
lected in  the  state.  Domestic  surety,  employers'  liability,  personal  acci- 
d  'nt,  plate  glass,  steam  boiler,  burglary,  and  other  kinds  of  insurance, 
except  life,  fire,  and  marine  companies  and  mutual  benefit  companies, 
must  pay  a  license  of  $1 ,500  to  the  insurance  commissioner. 

V.  Business  taxes  and  licenses. 

Some  taxes  technically  or  legallj*  defined  as  "license 
taxes"  have  been  included  under  corporation  taxes, 
above.  •   . 

Licenses  generally  are  issued  by  county  officials  and 
cover  the  territory  of  one  county,  but  the  revenue  from 
the  following  accrues  to  the  state  treasury.  The 
licenses  are  annual  unless  otherwise  stated: 

Insurance  brokers,  state,  $100;  insurance  brokers,  county,  $25;  tele- 
graph and  express  companies,  $300;  auctioneers,  license  rated  upon  the 
amount  in  value  of  merchandise  on  hand:  billiards — first  table,  $50; 
each  additional  table,  $25  (cities  and  towns  may  impose  a  further  tax). 
Brokers — exchange,  $100;  real  estate,  $25:  bill  brokers,  $50;  grain,  etc., 
in  Baltimore,  $30;  pawnbrokers,  $100;  shipping  brokers,  $50;  shipping 
brokers,  for  runners,  $50.  Hawkers  and  peddlers — on  foot,  $100;  with 
horse  and  vehicle,  $150:  with  two  horses  and  vehicle,  $200.  Ordinary 
keepers — rate  of  rent  or  annual  value  $100  or  less,  $25;  $100  to  $200, 
$40;  $200  to  $300,  $50;  $300  to  $400,  $60;  $400  to  $500,  $75;  $500  to 
$750,  $90;  $750  to  $1,000,  $100;  $1,000  to  $2,000,  $150;  $2,000  to 
$3,000,  $180;  $3,000  to  $5,000,  $250;  $5,000  to  $10,000,  $400;  over 
$10,000,  $450;  this  carries  the  right  to  sell  liquors  in  quantities  less 
than  1  pint.  Shows  and  theatrical  exhibitions — (Baltimore,  $3  per 
night),  $30  per  year,  $1  per  show;  animals  and  curiosities,  $15;  stal- 
lion or  jackass,  highest  sum  of  the  season,  at  least  $10  for  one  mare; 
this  payment  exempts  from  all  other  state  tax;  gypsies,  $50;  dogs, 
unless  taxed  by  municipal  ordinance,  not  less  than  $1  for  males  and 
$2  for  bitches — one  male,  however,  is  free  to  each  householder,  ex- 
cept in  Talbot  and  Harford  counties,  where  the  rate  is  $1,  male  or 
female.  Traders — persons  other  than  growers,  makers,  or  manufacturers 
offering  for  sale  goods,  wares,  and  merchandise  where  stock  in  trade  is 
less  than  $1,000,  $12;  $1,000  to  $1,500,  $15;  $1,500  to  $2,500,  $18; 
$2,500  to  $4,000,  $22;  $4,000  to  $6,000,  $30;  $6,000  to  $8,000,  $40; 
$8,000  to  $10,000,  $.50;  $10,000  to  $15,000,  $65;  $15,000  to $20,000,  $80; 
$20,000  to  $30,000,  $100;  $30,000  to  $40,000,  $125;  over  $40,000,  $150. 
Milliners,  female,  stock  less  than  $500,  $6.  Cigarettes,  $10.  Retail  of 
liquors— stock  not  over  $500,  $18;  $.500  to  $1,000,  $35;  $1 ,000  to  $2,000, 
$50;  $2,000  to  $4,000,  $75;  $4,000  to  $6,000,  $100;  $6,000  to  $10,000, 
$120:  $10,000  to  $20,000,  $130;  $20,000  to  $30,000,  $140;  over  $30,000, 
$150.  Sale  of  liquor  at  fisheries,  $6;  sale  of  liquor  at  horse  races,  $4; 
oyster  or  eating  houses,  $50. 

VI.  Tax  on  official  commissions. 

(Except  that  they  are  very  heavy,  these  taxes  are 
analogous  to  the  fees  charged  for  official  commissions  in 
other  states.) 

Judges  of  circuit  courts,  $50;  judges  of  superior  court,  court  of  com- 
mon pleas,  of  circuit  court  No.  2  of  Baltimore,  the  Baltimore  city  and 
criminal  courts,  $50;  sheriff  of  Baltimore  city,  $300;  sheriff  of  Balti- 


718 


WEALTH,  DEBT,  AND  TAXATION. 


more  county,  $100;  sheriffs  of  other  counties,  $20  to  $100;  judge  of 
orphans'  court,  Baltimore,  $50;  judge  of  orphans'  court,  several  coun- 
ties, $10;  justice  of  peace  and  constable,  $2;  tobacco  inspectors,  $50; 
weighers  of  live  stock,  $50;  weighers  of  grain,  $10;  notaries  public,  Bal- 
timore, $20;  clerks  of  court,  $200;  register  of  wills,  Baltimore,  $200; 
register  of  wills,  other  counties,  $30  to  $150. 

VII.    Tax  on  commissions  of  executors  and  administra- 
tors. 

All  commissions  allowed  to  executors  or  administrators  by  the  or- 
phans' courts  of  the  state  are  subject  to  a  tax  of  one-tenth  part  of  the 
sum  so  allowed.  The  orphans'  court  in  fixing  the  commissions  is  to 
make  no  allowance  for  the  tax. 

B.    FEES. 

(See  bonus  on  stock  under  Corporation  taxes.) 
Insurance — Filing  copy  of  charter  (with  insurance  commissioner), 

$25:  filing  annual  statement,  $25;  certificate  of  authority  (foreign),  $10; 

certificate  of  authority  (domestic),  $2;  abstract,  annual  statement,  $2. 
Notaries  public  are  required  to  pay  to  the  state  one-half  of  their  fees 

derived  from  protest.     These  fees  are  5  cents  for  each  protest,  mailed  or 

delivered. 

County  Revenues, 
a.  taxes. 

I.  The  general  property  tax. 

1.  Base — 

The  property  included  and  the  methods  of  assess- 
ment and  of  equalization  are  in  general  the  same  as 
for  state  taxation,  except  that  railroad  property,  like 
that  of  individuals,  is  to  be  taxed  for  county  and  city 
purposes.  By  special  acts  of  the  general  assembly  the 
county  commissioners,  to  encourage  certain  industries, 
may  exempt  certain  property  from  county  taxation. 

The  valuation  of  the  rolling  stock  of  railroads  is  to  be  divided  by  the 
state  tax  commissioner  among  the  counties  (and  the  city  of  Baltimore) 
in  proportion  to  the  mileage  of  railroads  located  therein.  The  real 
estate  is  assessed  like  that  of  individuals.  Shares  of  stock  in  railroad  com- 
panies are  not  taxed. 

2.  Bate— 

The  tax  is  levied  by  the  county  commissioners 
according  to  the  special  provisions  for  each  county. 

3.  Collection — 

The  method  of  collection  is  the  same  as  that  for  state 
taxes. 

II,  III,  and  IV.  Poll  tax,  inheritance  tax,  and  corpora- 

tion taxes. 
There   are   no   county   poll,  inheritance,  or  special 
corporation  taxes. 


V.  Business  taxes  and  licenses. 

County  licenses  are  provided  for  in  the  Code  of  Pub- 
lic Local  Laws  for  each  separate  county,  but  on  account 
of  their  diversity,  have  not  been  compiled. 

Special  tax  on  mortgages. — In  nine  counties  all  mort- 
gagors on  record  are  recmired  annually  to  pay  a  tax  of 
8  per  cent  upon  the  gross  amount  of  interest.  In  the 
remaining  counties  and  Baltimore  city  the  former 
mortgage  tax  is  repealed. 

Municipal  Revenues. 

A.    TAXES. 

I.  The  general  property  tax. 

1.  Base — 

All  municipal  taxes  are  levied  upon  the  property  as 
assessed  for  state  and  county  taxes,  in  conformity  with 
the  general  laws  relating  to  revenue  and  taxes  and  with 
the  public  local  laws  applicable  to  the  several  counties 
and  cities.  Railroad  property  is  subject  to  municipal 
taxation. 

2.  Bate— 

The  rate  is  determined  by  the  mayor  and  city  coun- 
cil under  the  local  laws. 

3.  Collection — 

The  method  of  collection  is  the  same  as  that  for 
county  taxes. 

II,  III,  and  IV.  Poll  tax,  inheritance  tax,  and  corpora- 

tion taxes. 

There  are  no  municipal  poll,  inheritance,  or  special 
corporation  taxes. 

V.  Business  taxes  and  licenses. 

Municipal  liquor  licenses  and  licenses  on  hawkers  and  peddlers  and 
other  lines  of  business  are  governed  by  local  laws  applicable  to  the  sev- 
eral counties  and  municipalities.  (See  Code  of  Public  Local  Laws,  1888, 
and  Appendix  in  Code  of  Public  General  Laws,  1904.) 

School  Revenues. 

For  the  support  of  free  public  schools  a  state  tax  of 
15  cents  is  to  be  levied  on  each  $100  of  taxable  prop- 
erty and  the  proceeds  distributed  to  the  several  coun- 
ties according  to  their  school  population.  If  this  fund 
is  not  sufficient,  the  county  commissioners  are  author- 
ized to  levy  an  additional  tax  not  to  exceed  JO  cents 
per  $100. 

The  income  from  the  state  school  fund  (of  1839)  and 
the  revenues  from  the  dog  taxes  and  from  certain  fines 
and  licenses  also  go  to  the  support  of  schools. 


TAXATION  AND  REVENUE  SYSTEMS— MASSACHUSETTS. 


719 


MASSACHUSETTS.1 


The  general  property  tax  is  used  in  Massachusetts 
for  both  state  and  local  purposes.  It  is  the  main 
dependence  of  the  local  governments,  but  the  state 
government  draws  very  heavily  upon  other  sources  as 
well.  Peculiar  features  of  the  system  are  the  listing  of 
polls  along  with  property  and  of  certain  incomes  as  if 
property,  and  the  apportioning  of  county  and  state 
taxes  on  both  thereof,  as  well  as  on  real  and  personal 
property  among  the  towns  and  cities.  The  assess- 
ment of  real  and  personal  property,  including  in- 
comes, and  of  polls  and  the  general  administration 
of  this  tax  are  matters  of  local  administration  mainly. 
The  state  levies,  through  the  agencies  of  the  towns  and 
cities,  a  so-called  direct  state  tax  (usually  expressed  in 
round  numbers— in  1902  it  was  $2,500,000;  in  1903, 
$1,500,000),  apportioned  among  them  on  the  basis  of 
the  local  valuations  and  enumeration  of  polls  roughly 
equalized. 

The  general  corporation  tax,  or  so-called  general 
franchise  tax,  administered  largely  by  state  officials,  is 
a  distinguishing  feature  of  the  Massachusetts  system. 
This  tax  and  certain  special  corporation  taxes  yield  a 
large  proportion  of  the  state  revenue. 

Another  feature  usually  regarded  as  characteristic 
of  this  state  is  the  method  of  taxing  mortgages,  adopted 
in  1881.  The  design  is  to  impose  but  one  tax  on  real 
estate,  whether  mortgaged  or  not,  and  to  leave  the  two 
parties  at  interest,  where  real  estate  is  mortgaged,  to 
adjust  the  equities  in  the  matter  of  taxation  between 
themselves  as  they  see  fit.  The  mortgage  is  listed  as 
an  interest  in  the  property,  and  the  excess  in  the  value 
of  the  property  over  the  mortgage,  if  there  be  any,  is 
listed  separately.  Under  this  law  it  is  customary  for 
the  mortgagor  to  pay  all  the  taxes. 

CONSTITUTIONAL    PROVISIONS. 
Part  the  Second.     Chapter  I. 

ARTICLE    IV. 

Sec.  1.  And  further,  full  power  and  authority  are  hereby  given  and 
granted  to  the  said  general  court  *  *  *  to  impose  and  levy  pro- 
portional and  reasonable  assessments,  rates,  and  taxes,  upon  all  the 
inhabitants  of,  and  persons  resident,  and  estates  lying  within,  the  said 
commonwealth;  and  also  to  impose  and  levy  reasonable  duties  and 
excises  upon  any  produce,  goods,  wares,  merchandise,  and  commodities  j 
whatsoever,  brought  into,  produced,  manufactured,  or  being  within  the 
same.     *     *     * 

1  This  compilation  is  derived  mainlv  from  the  following  sources: 

Report  of  the  commission  to  inquire  into  the  expediency  of  revising 
and  amending  the  laws  of  the  commonwealth  relating  to  taxation. 
October,  1897:  Boston,  1897. 

The  Revised  Laws  of  the  Commonwealth  of  Massachusetts,  enacted 
November  21,  1901,  to  take  effect  January  1,  1902.  In  two  volumes 
and  an  index  volume:  Boston,  1902. 

A  compilation  of  the  laws  relating  to  taxation  by  the  local  assessors 
in  Massachusetts,  prepared  for  the  use  of  assessors  and  collectors  in 
cities  and  towns,  by  Wm.  D.  T.  Trefry,  tax  commissioner:  Boston,  1902. 

Revised  laws  relating  to  taxes  and  excises  for  revenue  upon  corpora- 
tions in  Massachusetts:  Boston,  1902. 


And  while  the  public  charges  of  government,  or  any  part  thereof, 
shall  be  assessed  on  polls  and  estates,  in  the  manner  that  has  hitherto 
been  practiced,  in  order  that  such  assessments  may  bo  made  with  equal- 
ity, there  shall  be  a  valuation  of  estates  within  the  commonwealth,  taken 
anew  once  in  every  ten  years  at  least,  and  as  much  oftener  as  the  general 
court  shall  order. 

Part  the  First. 

article  x. 

Each  individual  of  the  society  has  a  right  to  be  protected  by  it  in  the 
enjoyment  of  his  life,  liberty,  and  property,  according  to  standing  laws. 
He  is  obliged,  consequently,  to  contribute  his  share  to  the  expense  of 
this  protection;  to  give  his  personal  service  or  an  equivalent,  when  nec- 
essary; but  no  part  of  the  property  of  any  individual  can,  with  justice, 
be  taken  from  him,  or  applied  to  public  uses,  without  his  consent,  or 
that  of  the  representative  body  of  the  people     *     *     *. 

article  xxm. 

No  subsidy,  charge,  tax,  import,  or  duties  ought  to  be  established, 
fixed,  laid,  or  levied,  under  any  pretext  whatsoever,  without  the  consent 
of  the  people  or  their  representatives  in  the  legislature. 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  The  town  assessors,  three  or  more  in  each  town,  elected  at  the 
annual  town  meeting,  for  terms  varying  from  one  to  three  years.  The 
selectmen  may  lie  made  the  assessors,  or  they  may  so  act  if  none  are 
elected  by  the  town.  If  the  selectmen  fail  to  act,  the  county  commis- 
sion may  appoint. 

(2)  Assessors  in  cities. — There  is  no  general  statute  in  regard  to  the 
appointment  of  assessors  in  cities,  and  the  practice  varies  so  greatly  that 
no  summation  is  possible.  Such  assessors,  who  are  usually  three  in 
number,  but  sometimes  one  and  sometimes  nine,  are  in  some  cities 
appointed  by  the  mayor,  in  some  elected  by  the  council,  and  in  others 
elected  by  the  people. 

(3)  The  town  collectors  of  taxes,  one  or  more  in  each  town,  elected 
annually  in  town  meeting.  The  town  may  at  any  meeting  appoint 
the  town  treasurer  tax  collector.  The  constables  act  as  tax  collectors 
unless  other  persons  are  appointed  as  such. 

(4)  Collectors  in  cities,  usually  one  in  each  city,  elected  for  terms 
fixed  by  the  charters. 

(5)  The  state  auditor  of  accounts,  elected  annually  at  the  state 
election. 

(6)  The  state  tax  commissioner,  appointed  by  the  governor  for  a 
term  of  three  years. 

State  Revenues. 

a.  taxes. 

I.    The  general  property  tax. 

(N.  B. — Certain  features  of  the  poll  tax  are  so  in- 
extricably bound  up  with  the  general  property  tax 
that  neither  tax  could  be  fully  described  by  itself, 
and  both  are  therefore  incorporated  here.  Since  1901, 
however,  the  poll  tax  has  been  made  an  annual  tax  of 
$2  on  every  male  inhabitant  over  20  years  of  age.) 

1.  Base — 
a.    The  property  included  and  exempt. — All  property, 
real  and  personal,  situated  within  the  commonwealth, 


720 


WEALTH,  DEBT,  AND  TAXATION. 


and  all  personal  property  of  the  inhabitants  wherever 
situated,  unless  expressly  exempted  bylaw,  is  subject 
to  taxation. 

(1)  "Real  estate,"  for  the  purpose  of  taxation,  includes  not  only  all 
and,  but  also  all  things  affixed  thereto.     The  mortgagee's  interest  in 

the  land  is  taxable  as  real  estate. 

(2)  "Personal  estate,"  for  purposes  of  taxation,  includes:  (a)  Goods, 
chattels,  money,  and  effects  wherever  they  are;  (b)  ships  and  vessels 
not  engaged  in  the  foreign  carrying  trade; '  (<•)  money  at  interest  and 
other  debts  due  the  persons  to  be  taxed  over  and  above  what  they 
are  indebted  or  pay  interest  for;  debts  secured  by  mortgages  on  tax- 
able real  estate  are  not  included  in  such  taxable  debts,  and  may  not 
be  used  to  reduce  the  amount  of  taxable  debts  due;  (d)  stocks 
and  bonds,  public  and  other;  but  shares  in  corporations  chartered  by 
the  commonwealth  are  not  taxable  to  the  holder,  taxation  being 
secured  by  the  general  franchise  tax;  (e)  income  from  an  annuity  or 
from  ships  engaged  in  the  foreign  carrying  trade,1  and  so  much  of  the 
income  of  a  profession,  trade,  or  employment  as  exceeds  $2,000  a  year; 
but  no  income  is  taxable  if  derived  from  property  subject  to  taxation. 
Under  this  provision  incomes  from  professions  and  salaries  are  taxable, 
and  it  has  been  held  that  incomes  from  trade  being  derived  from  skill 
and  management  as  well  as  from  the  use  of  capital  taxed  are  taxable. 

(3)  Exemptions  from  taxation,  in  addition  to  public  property,  are: 
The  personal  property  of  literary,  benevolent,  charitable,  and  scientific 
institutions,  and  of  temperance  societies  incorporated  in  the  common- 
wealth and  the  real  estate  owned  and  occupied  by  them,  but  such 
property  is  not  exempt  if  the  income  is  divided  among  the  stockhold- 
ers or  members;  the  real  and  personal  estate  of  incorporated  agri- 
cultural societies;  the  real  and  personal  estate  of  any  Grand  Army  or 
veteran  association  incorporated  in  the  commonwealth  to  the  extent  of 
$20,000  if  used  and  occupied  by  posts  of  the  Grand  Army;  the  Bunker 
Hill  monument;  houses  of  religious  worship  and  the  pews  and  furni- 
ture; cemeteries,  tombs,  and  rights  of  burial;  the  property  to  the 
amount  of  $500  of  a  widow,  of  an  unmarried  woman  over  21  years  of 
age,  of  a  person  over  75  years  of  age,  or  of  a  minor  whose  father  is 
deceased,  provided  that  the  whole  estate,  real  and  personal,  of  such 
persons  does  not  exceed  in  value  $1,000;  the  wearing  apparel  and 
farming  utensils  of  every  person,  his  household  furniture  not  exceed- 
ing $1,000  in  value,  and  the  necessary  tools  of  a  mechanic  not  exceed- 
ing $300  in  value;  the  property  of  soldiers  and  sailors  who  served  in 
the  Civil  War  and  were  disabled,  their  wives  and  widows,  to  the 
amount  of  $2,000  where  the  whole  estate  does  not  exceed  $5,000; 
plantations  of  chestnut,  hickory,  white  ash,  white  oak,  and  other 
trees,  where  the  land  is  devoted  exclusively  to  the  growth  of  the  trees, 
for  ten  years  after  the  trees  reach  4  feet;  ships  and  vessels  engaged  in 
the  foreign  carrying  trade  are  exempt,  but  the  yearly  income  derived 
therefrom  is  taxable; '  the  capital  stock,  corporate  franchises,  and  per- 
sonal property  of  corporation  banks;  mules,  horses,  and  neat  cattle 
less  than  1  year  old;  swine  and  sheep  less  than  6  months  old,  and 
domestic  fowls  not  exceeding  $15  in  value. 

b.  Assessment. — A  striking  feature  connected  with 
the  assessment  is  the  set  of  unusual  and  extraordinary 
powers  conferred  upon  the  assessors,  who  not  only 
make  the  valuations  and  list  the  polls  and  estates  but 
make  the  final  tax  levy,  or,  as  it  is  called  in  the  stat- 
utes, "assess  the  taxes,"  by  which  is  meant  that  they 
apportion  among  the  various  polls  and  estates  as  val- 
ued by  them  the  amount  of  taxes  authorized  to  be 
raised  in  their  town  or  city  for  town  or  city,  county, 
and  state  purposes.  They  also  "commit  the  tax  list 
with  their  warrants  to  the  collector  of  taxes,"  and  may 
even  grant  "abatements,"  or  reductions,  in  taxes  to 

'Repealed  in  1902;  chap.  374,  acts  of  1902. 


individuals  after  the  tax  bills  are  made  out.  They 
thus  perform  the  functions  and  have  the  powers  of 
assessors,  auditors,  equalizers,  local  boards  of  review, 
and  local  boards  of  appeal  with  respect  to  taxation; 
but  an  appeal  from  the  arbitrary  exercise  of  these 
powers  lies  to  the  county  commissioners. 

Under  the  statutes  the  assessors  publish  a  notice 
requiring  the  inhabitants  of  each  town  or  city  to  bring 
in  sworn  "true  lists"  of  all  their  property,  but  there 
is  no  machinery  or  penalties  for  compelling  the  inhab- 
itants to  obey  this  requirement.  Should  anyone  do 
so,  he  is  entitled  to  have  his  list  "received  as  true," 
except  as  to  valuations,  but  most  property  is  listed  by 
the  assessors  "according  to  their  best  information." 

The  assessment  refers  to  the  1st  day  of  May,  and 
valuations  are  to  be  at  the  fair  cash  value. 

Property  exempted  from  taxation,  except  that  of 
charitable  and  religious  institutions,  is  also  listed  and 
valued  for  purposes  of  statistical  information. 

Real  estate  is  listed  annually,  mortgages  being  treated 
as  an  interest  in  real  estate  and  listed  in  the  place 
where  the  real  estate  lies,  and  personal  property  is  also 
assessed  annually  and  in  the  city  or  town  of  which  the 
owner  is  a  resident,  except  stock  in  trade  and  ma- 
chinery employed  in  other  places,  which  is  assessed 
where  it  is  located. 

c.  Equalization. — Strictly  speaking,  there  is  no  pro- 
vision for  local  equalization.  Taxpayers  overassessed 
may  obtain  redress  either  from  the  assessors,  the 
county  commissioners,  or  the  superior  court.  But 
there  is  no  machinery  designed  to  raise  the  assessments 
which  may  be  below  the  fair  cash  value,  except  to  call 
the  assessors  to  account  for  nonperformance  of  duties. 

The  following  section  seems  to  imply  a  system  of 
state  equalization,  but  it  should  be  observed  that  it 
operates  on  the  apportionment  or  share  of  state  and 
of  county  taxes  to  each  city  or  town  and  not  upon  the 
valuations,  and  operates  only  triennially. 

Revised  laws,  chapter  12,  section  100. — "The  tax  commissioner  shall, 
before  the  first  da}-  of  January  in  the  year  nineteen  hundred  and  four 
and  before  the  first  day  of  January  in  every  third  year  thereafter,  pre- 
pare and  report  in  print  to  the  general  court,  within  the  first  week  of  its 
then  next  succeeding  session,  an  equalization  and  apportionment  upon 
the  several  cities  and  towns,  of  the  number  of  polls,  the  amount  of  prop- 
erty, and  the  proportion  of  every  one  thousand  dollars  of  state  or 
county  tax,  including  polls  at  one-tenth  of  a  mill  each,  which  should  be 
assessed  upon  each  city  and  town." 

The  unit  of  apportionment  is  $1,000.     The  amount 
which  the  polls  will  raise  at  one-tenth  of  a  mill  each  is 
deducted  from  $1,000  in  determining  the  property  tax 
rate  for  each  town. 
2.  Rate— 

The  aggregate  amount  of  state  and  countj*  taxes  to 
be  raised  is  fixed  by  the  legislature  at  each  session. 
Each  town  or  city  is  required  to  raise  its  quota  for 
state  and  county  purposes  by  a  levy  on  polls  and  es- 
tates.    Once  every  three  years  the  tax  commissioner 


TAXATION  AND  REVENUE  SYSTEMS— MASSACHUSETTS. 


721 


determines  what  proportion  of  the  whole  each  town  or 
city  is  to  pay.  The  assessors  in  the  towns  then  deter- 
mine the  rates  by  apportionment  upon  the  property 
subject  to  taxation. 

There  is  thus  no  state  rate  as  such. 
3.   Collection — 

All  taxes  are  collected  by  the  town  tax  collectors, 
and  are  payable  on  demand  by  him.  If  they  remain 
unpaid  for  fourteen  days  after  demand  and  notice, 
they  may  be  collected  by  distress  and  sale  and  in  cer- 
tain cases  by  arrest  and  imprisonment. 

Taxes  on  land  become  a  lien  on  May  1. 

II.  Poll  tax. 

The  first  section  of  the  revenue  laws  says:  "A  poll 
tax  of  two  dollars  shall  be  assessed  on  every  male  in- 
habitant of  the  commonwealth  above  the  age  of 
twenty  years,  whether  a  citizen  of  the  United  States 
or  an  alien."  This  tax  is  paid  into  the  municipal  treas- 
uries as  part  of  the  fund  out  of  which  the  state's  share 
of  taxes  is  drawn. 

III.  Inheritance  taxi 

All  property  within  the  jurisdiction  of  the  state, 
corporeal  or  incorporeal,  and  any  interest  therein, 
whether  belonging  to  inhabitants  of  the  state  or  not, 
which  shall  pass  by  will,  or  by  the  laws  regulating  in- 
testate succession,  or  by  deed,  sale,  or  gift,  intended 
to  take  effect  in  possession  after  the  death  of  the  grantor 
except  to  or  for  the  use  of  the  father,  mother,  husband, 
wife,  lineal  descendant,  brother,  sister,  adopted  child, 
the  wife  or  widow  of  a  son,  or  the  husband  of  a  daughter 
of  a  decedent,  is  subject  to  the  collateral  inheritance 
tax  of  5  per  cent  of  the  value  of  the  share  or  gift. 

Gifts  to  institutions  whose  property  is  exempt  and 
to  towns  for  public  purposes  are  also  exempt  and  no 
distributive  share  or  gift  is  subject  to  the  tax  unless  its 
value  exceeds  $500.  The  value  is  appraised  by  the 
probate  court. 

This  tax  with  the  interest  thereon  attaches  as  a  lien 
to  the  property  and  is  collected  by  the  treasurer  of  the 
commonwealth. 

IV.  Corporation  taxes. 

Corporations  are  taxed  by  the  state  upon  all  those 
elements  in  their  wealth  which  can  not  be  reached  with 
comparative  ease  and  certainty  by  the  local  assessors. 
But  the  state  retains  for  its  own  use  only  that  portion 
of  the  taxes  so  raised  which  would  not,  under  the  gen- 
eral principles  determining  the  situs  of  property,  natu- 
rally belong  to  some  one  of  the  towns  and  cities,  and 
therefore  turns  back  to  the  towns  a  considerable  part 
of  that  which  is  collected. 

In  1903  the  law  relating  to  corporations  was  exten- 
sively revised.  The  following  analysis  follows  that 
in  force  in  1902: 

The  general  corporation  tax  is  also  known  as  a  gen- 
eral franchise  tax  or  a  tax  on  the  corporate  excess. 
It   is   administered   by   the   state   tax  commissioner. 

932—07 46 


He  ascertains  the  market  value  of  the  shares  of  the 
capital  stock  of  each  corporation,  which  is  denominated 
the  value  of  the  corporate  franchise.  From  this  amount 
are  deducted  certain  items  locally  taxed  and  certain 
items  regarded  as  lying  beyond  the  jurisdiction  of  the 
state.  The  balance  is  assessed  as  the  "corporate  ex- 
cess," and  the  corporations  pay  the  tax  directly  into 
the  state  treasury. 

The  deductions  allowed  in  the  case  of  all  corpora- 
tions are:  Real  estate  and  machinery  taxed  by  towns 
and  cities  in  Massachusetts;  and  in  the  case  of  all  but 
railroad,  telegraph,  telephone,  or  street  railway  com- 
panies, real  estate  and  machinery  locally  taxed  wher- 
ever situated;  in  the  case  of  a  railroad  or  telegraph 
company,  or  of  a  street  railway  company,  domestic  or 
foreign,  so  much  of  the  value  of  its  capital  stock  as  is 
proportionate  to  the  length  of  line  outside  the  state; 
in  the  case  of  a  domestic  telephone  company,  all  stock 
held  by  it  in  other  corporations  which  has  been  taxed 
in  Massachusetts  or  elsewhere;  and  in  the  case  of 
foreign  telephone  companies,  as  much  of  its  capital 
stock  as  is  proportional  to  the  number  of  telephones 
controlled  or  used  outside  the  state. 

The  rate  of  taxation  levied  upon  the  corporate 
excess  is  determined  by  the  commissioner,  who  ascer- 
tains the  total  amount  raised  by  taxation  other  than 
on  polls  in  all  the  different  towns  and  cities,  and  divides 
that  by  the  total  valuation  of  property  as  returned  by 
the  assessors. 

The  amount  raised  by  the  tax  on  corporate  excess 
is  distributed  in  part  to  towns  and  cities  in  proportion 
to  the  number  of  shares  held  by  citizens  thereof  in  each 
town.  The  remainder,  which  represents  the  tax  on 
shares  of  stock  held  outside  the  state,  remains  in  the 
state  treasury.  In  the  case  of  foreign  telegraph  com- 
panies the  shareholders  are  not  sought  out  and  the 
state  takes  the  entire  tax. 

The  following  cases  are  departures  from  the  general 
rule  already  laid  down,  either  in  the  direction  of  special 
procedure  or  of  additional  taxes  imposed: 

Shares  of  stock  in  banks,  national  or  state,  are  assessed  locally  to 
the  owners  and  not  by  the  state  tax  commissioner.  The  bank  ad- 
vances the  tax.  The  revenue  obtained  is  distributed  among  the  towns 
and  cities  where  the  shareholders  reside,  and  the  state  receives  as  its 
share  that  levied  on  the  shares  of  foreign  stockholders. 

Savings  banks  are  taxed  on  their  deposits  at  the  rate  of  one-half  of  1 
per  cent  per  annum,  payable  semiannually,  which  is  computed  upon 
the  average  deposits  for  each  six  months;  but  the  amount  invested 
in  taxable  real  estate  and  mortgages  is  deducted.  Cooperative  banks 
are  exempt  except  upon  their  real  estate.  The  tax  on  savings  bank 
deposits  is  in  lieu  of  all  other  taxes.  The  Massachusetts  Hospital  Life 
Insurance  Company  is  taxed  in  much  the  same  manner  as  savings  banks. 

Life  insurance  companies,  domestic  and  foreign,  pay  an  excise  tax  of 
one-fourth  of  1  per  cent  per  annum  upon  the  net  value  of  all  policies  in 
force.  All  other  domestic  insurance  companies  pay  1  per  cent  on  net 
premiums  except  premiums  received  in  other  states  where  they  are  sub- 
ject to  a  like  tax.  All  othervforeign  insurance  companies  pay  2  per  cent 
on  net  premiums  received  in  Massachusetts. 

There  is  a  retaliatory  tax  on  insurance  companies  of  every  class 
organized  in  states  which  tax  Massachusetts  companies  more  heavily, 


722 


WEALTH,  DEBT,  AND  TAXATION. 


and  a  2  per  cent  additional  tax  on  companies  chartered  outside  of  the 
United  States  if  they  fail  to  keep  on  deposit  in  the  United  States  proper 
security  for  losses. 

Trust  companies  are  taxable  on  their  deposits  or  trust  funds,  and  this 
tax  is  treated  in  the  same  manner  as  that  on  corporate  excess. 

Street  railway  companies  whose  lines  are  partly  within  and  partly  with- 
out the  state,  which  have  paid  dividends  from  the  beginning  aggregat- 
ing 6  per  cent  per  annum,  are  required  to  pay  a  tax  equal  to  the  excess 
over  8  per  cent  in  any  dividend  declared  over  that  amount. 

Street  railroads  generally  pay  an  excise  tax  in  each  town  on  that  pro- 
portion of  their  gross  receipts  which  corresponds  to  the  miles  of  track 
in  each  town  or  city.  The  rates  arc:  Gross  receipts,  $4,000  or  less  per 
mile,  1  per  cent;  $4,000  to  $7,000  per  mile,  2  per  cent;  $7,000  to  $14,000 
per  mile,  2J  per  cent;  $14,000  to  $21,000  per  mile,  2i  per  cent;  $21,000 
to  $28,000  per  mile,  2|  per  cent ;  over  $28,000  per  mile,  3  per  cent.  These 
taxes  are  devoted  to  the  care  of  the  streets. 

Domestic  mining  and  quarrying  companies  doing  business  outside  the 
commonwealth  pay  semiannually  one-twentieth  of  1  per  cent  on  the  par 
value  of  their  capital  stock  and  4  per  cent  on  net  profits.  Similar 
companies  having  a  usual  place  of  business  in  Massachusetts,  but  or- 
ganized under  laws  of  other  states,  pay  semiannually  one  -  fortieth  of 
1  per  cent  on  par  value  of  stock  paid  in;  but  this  tax  is  not  to  exceed 
$300.  Corporations  (domestic)  formed  to  construct  railroads  or  rail- 
roads and  telegraphs  in  foreign  countries,  pay  one-twentieth  of  1  per 
cent  per  annum,  divided  into  semiannual  installments. 

Gas  and  electric  light  companies  have  to  bear  the  expense  of  the 
board  of  gas  and  electric  light  commissioners  and  the  cost  of  inspect- 
ors of  gas  meters.  Railroads  bear  the  expense  of  the  railroad  com- 
mission and  the  costs  of  inquests  on  travelers  killed. 

V.  Business  taxes  and  licenses. 

The  commonwealth  receives  one-fourth  of  the  local 
liquor  licenses.     (See  Municipal  revenues.) 

Itinerant  vendors  pay  to  the  secretary  of  commonwealth  a  license  fee 
of  $25  for  one  year;  hawkers  and  peddlers,  $50;  agents  of  foreign  fire 
insurance  companies  not  authorized  to  do  business  in  Massachusetts, 
$20. 

B.    FEES. 

Secretary  of  the  commonwealth. — Articles  of  incorporation  and 
amendments  thereto,  one-twentieth  of  1  per  cent  of  capital  stock,  but 
not  less  than  $5  nor  more  than  $200.  In  1903,  made  one-fortieth  of  1 
per  cent  but  not  less  than  $10. 

Commissioner  of  corporations.— For  every  writ  served  upon  him  as 
attorney  for  a  foreign  corporation,  $2. 

Treasurer. — For  filing  first  papers  of  foreign  corporations,  $25. 

The  commonwealth  receives  the  proceeds  of  a  fee  of  $2  charged  for  the 
inspection  of  steam  boilers. 

Insurance  commissioner. — Valuations 'of  life  policies,  2  J  mills  per 
$1,000  of  insurance;  examination  of  domestic  companies,  $30;  filing 
charter  of  foreign  companies,  $30;  application  for  admission  and  annual 
statement,  $20;  licenses  for  agents  in  foreign  insurance  companies,  $20 
annually;  insurance  broker,  $20;  renewal,  $2;  certificate  of  valuation 
of  policies  of  life  insurance  companies,  $2. 

County  Revenues. 

The  counties  in  Massachusetts  have  very  little  auton- 
omy and  no  strictly  independent  tax  levy  for  their  sup- 
port. They  merely  receive  into  their  treasuries  cer- 
tain sums  allotted  to  them  under  orders  of  the  general 
court,  and  assessed  and  collected  by  the  town  and  city 
assessors  upon  the  polls  and  estates  in  each  town  and 
city.  The  entire  machinery  for  county  taxes  has  there- 
fore been  described  under  the  head  of  State  revenues. 


Municipal  Revenues. 

Town  and  city  taxes  on  polls  and  estates  are  assessed, 
levied,  and  collected  in  the  same  manner  as  has  already 
been  described  for  state  revenues,  and  no  further  analy- 
sis is  necessary.  Owing  to  the  large  degree  of  autonomy 
enjoyed  by  the  towns  and  cities  there  are  many  local 
differences  of,  law  and  practice.  These  practices  and 
local  institutions  rest  as  often  upon  tradition  as  upon 
express  grant  by  any  legislative  authority,  and  in  some 
cases  suggest  that  the  original  powers  of  the  local  au- 
thorities are  superior  even  to  those  of  the  common- 
wealth. 

V.  Business  taxes  and  licenses. 

Liquor  licenses,  annual — First  class,  liquors  of  all  kinds,  to  be  drunk 
on  premises,  minimum,  $1,000;  second  class,  malt  liquors,  cider,  and 
light  wines,  to  be  drunk  on  premises,  minimum,  $250;  third  class,  malt 
liquors  and  cider,  to  be  drunk  on  premises,  minimum,  $250;  fourth  class, 
liquors  of  any  kind,  not  to  be  drunk  on  premises,  minimum,  $300;  fifth 
class,  malt  liquors,  eider,  light  wines,  not  to  be  drunk  on  premises,  mini- 
mum, $150;  sixth  class,  retail  druggists,  $1;  seventh  class,  paints  and 
chemicals,  $1.     Of  these,  the  cities  receive  three-fourths. 

Other  licenses,  annual — Auctioneers,  not  less  than  $2 :  billiard  saloons, 
not  less  than  $2;  bowling  alleys,  not  less  than  $2;  carriages,  $1 ;  dogs, 
for  breeding,  five  in  number,  $25,  over  five,  $50:  males  and  spaj'ed 
females,  $2;  females,  $5;  peddlers,  towns  of  1,000,  $3;  1,000  to  2,000, 
$6;  2,000  to  3,000,  $8;  3,000  to  4,000,  $10;  cities  and  other  towns,  $10 
plus  $1  per  1,000,  limit,  $25;  horse  killing  establishments,  not  to  ex- 
ceed $1 ;  intelligence  offices,  not  less  than  $2;  junk  dealers,  not  less  than 
$2;  milk  dealers,  50  cents;  oyster  digging,  $2.50:  pawnbrokers,  $50; 
plumbers — master,  $2;  journeymen,  50  cents;  private  detectives,  $10; 
slaughterhouses,  not  less  than  $1 ;  steamboats,  not  less  than  $1 ;  skating 
rinks  and  picnic  groves,  not  less  than  $2;  surveyor  of  lumber,  not  less 
than  $1. 

VI.  Special  property  taxes. 

Watering  rates. — This  tax  is  treated  as  a  part  of  the 
general  property  tax,  in  which  its  returns  are  merged. 
In  form  it  suggests  a  special  assessment,  but  it  differs 
therefrom  in  that  it  is  regularly  recurrent  each  year 
and  is  not  for  any  permanent  improvement.  It  differs 
from  the  general  property  tax  in  that  it  is  levied  on 
part  of  the  property  only,  and  assessed  upon  each 
linear  foot  of  frontage  instead  of  upon  valuation.  In 
some  cities  and  towns  the  same  services  are  charged  to 
the  general  property  tax.  It  is  levied  and  collected 
by  the  same  officers  as  the  general  property  tax. 

A  city  may  determine  that  the  streets,  or  certain 
streets,  or  portions  of  streets  shall  be  watered,  in  whole 
or  in  part,  at  the  expense  of  the  abutters.  In  such 
event  the  expense  for  a  municipal  year,  the  propor- 
tion thereof  to  be  borne  by  abutters,  and  the  rate  to 
be  assessed  upon  each  linear  foot  of  frontage  upon 
such  streets  or  portions  of  such  streets  is  estimated  and 
determined  by  the  board  of  aldermen,  and  assessed 
upon  the  estates  abutting  on  such  streets  in  proportion 
to  the  number  of  linear  feet  of  each  estate  on  the  wa- 
tered street.  The  amount  on  each  estate  is  determined 
by  the  board,  or,  if  the  board  so  determines,  by  the 


TAXATION  AND  REVENUE  SYSTEMS— MICHIGAN. 


723 


board  of  public  works,  the  board  of  street  commis- 
sioners, superintendent  of  streets,  or  other  officer,  who 
certifies  the  same  to  the  assessors. 

This  tax  is  included  in  the  annual  tax  bill  of  such 
estates  and  collected  as  other  taxes  on  the  same  estates. 


School  Revenues. 
The  sum  of  $100,000  is  to  be  paid  annually  from  the 

MICHIGAN.1 


treasury  of  the  commonwealth  into  the  school  fund 
until  the  principal  amounts  to  $5,000,000.  The 
income  is  apportioned  among  the  towns,  to  be  applied 
by  the  school  committees  to  the  public  schools. 

Towns  are  required,  under  penalty  of  forfeitures,  to 
raise  by  taxation  money  necessary  for  the  support  of 
public  schools,  which  shall  go  to  the  school  committees 
of  the  town. 


The  constitution  of  Michigan,  adopted  in  1850,  pre- 
scribed the  general  property  tax  for  state  and  local  pur- 
poses, but  also  permitted  the  legislature  to  levy  "spe- 
cific" taxes  upon  certain  classes  of  corporations  for  cer- 
tain state  purposes,  mainly  educational,  such  specific 
taxes  to  be  in  lieu  of  all  other  taxes.  Under  the  latter 
provision  the  legislature  levied  a  tax  on  the  gross 
receipts  of  railroads  and  other  large  corporations.  In 
1900  the  constitution  was  amended  so  as  to  permit  of 
what  was  popularly  known  as  "equal  taxation,"  or  the 
taxation  of  railroads  and  large  corporations  on  their 
entire  property  in  the  state  as  determined  and  assessed 
by  a  state  board  at  a  rate  equal  to  the  average  rate  for 
state,  county,  and  municipal  purposes  assessed  upon 
other  property.  The  changes  made  by  the  legislature 
in  the  revenue  laws  pursuant  to  this  amendment  went 
into  effect  for  the  most  part  in  1902.  On  that  account 
both  systems  will  have  to  be  described. 

CONSTITUTIONAL    PROVISIONS. 
ARTICLE   XIV. 

Sec.  1.  All  specific  state  taxes,  except  those  received  from  the 
mining  companies  of  the  upper  peninsula,  shall  he  applied  in  paying 
the  interest  upon  the  primary  school,  university,  and  other  educational 
funds,  and  the  interest  and  principal  of  the  state  debt,  in  the  order 
herein  recited,  until  the  extinguishment  of  the  state  debt,  other  than  the 
amounts  due  to  educational  funds,  when  such  specific  taxes  shall  be 
added  to  and  constitute  a  part  of  the  primary  school  interest  fund. 
The  legislature  shall  provide  for  an  annual  tax,  sufficient  with  other  re- 
sources to  pay  the  estimated  expenses  of  the  state  government,  the 
interest  of  the  state  debt,  and  such  deficiency  as  may  occur  in  the 
resources. 

Sec.  10  (as  amended  in  1900).  The  state  may  continue  to  collect  all 
specific  taxes  accruing  to  the  treasury  under  existing  laws.  The  legisla- 
ture may  provide  for  the  collection  of  specific  taxes  from  corporations. 
The  legislature  may  provide  for  the  assessment  of  the  property  of  corpo- 
rations, at  its  true  cash  value,  by  a  state  board  of  assessors,  and  for  the 
levying  and  collection  of  taxes  thereon.  All  taxes  hereafter  levied  on 
tlie  property  of  such  classes  of  corporations  as  are  paying  specific  taxes 
under  laws  in  force  on  November  6, 1900,  shall  be  applied  as  provided  for 
specific  taxes  in  section  one  of  this  article. 

Sec.  11  (as  amended  in  1900).  The  legislature  shall  provide  a  uniform 
rule  of  taxation,  except  on  property  paying  specific  taxes,  and  taxes  shall 


•This  compilation  is  derived  mainly  from  the  following  sources: 

The  Compiled  Laws  of  the  State  of  Michigan  of  1897.  Compiled  under 
provision  of  the  law  by  L.  M.  Miller;  3  volumes  and  an  index:  Lansing, 
Mich.,  1899. 

Public  Acts  of  1899,  No.  19,  approved  March  15,  1899. 

Public  Acts  of  1899,  No.  179,  approved  June  23,  1899. 

Public  Acta  of  1901,  No.  173,  approved  May  27,  1901. 


be  levied  on  such  property  as  shall  be  prescribed  by  law:  Provided,  That 
the  legislature  shall  provide  a  uniform  rule  of  taxation  for  such  prop- 
ertyas  shall  be  assessed  by  a  state  board  of  assessors,  and  the  rate  of  tax- 
ation on  such  property  shall  be  the  rate  which  the  state  board  of  assessors 
shall  ascertain  and  determine  is  the  average  rate  levied  upon  other  prop- 
erty upon  which  ad  valorem  taxes  are  assessed  for  state,  county,  town- 
ship, school,  and  municipal  purposes. 

Sec.  12.  All  assessments  hereafter  authorized  shall  be  on  property  at 
its  cash  value. 

Sec.  13  (as  amended  in  1900).  In  the  year  1901  and  every  fifth  year 
thereafter,  and  at  such  other  times  as  the  legislature  may  direct,  the 
legislature  shall  provide  for  an  equalization  of  assessments  by  a  state 
board,  on  all  taxable  property,  except  that  taxed  under  laws  passed  pur- 
suant to  section  ten  of.  this  article. 

Sec.  14.  Every  law  which  imposes,  continues,  or  revives  a  tax  shall 
distinctly  state  the  tax,  and  the  object  to  which  it  is  to  be  applied:  and 
it  shall  not  be  sufficient  to  refer  to  any  other  law  to  fix  such  tax  or  object. 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  The  supervisors,  elected  annually  in  each  township,  who  make  the 
initial  assessments;  in  incorporated  villages  and  in  certain  cities  this 
work  is  done  by  an  officer  called  the  assessor,  or  by  a  board  of  assessors. 

(2)  The  board  of  review  for  each  township,  composed  of  the  super- 
visor, and  two  taxpaying  landholders  elected  for  two  years,  one  in  each 
alternate  year. 

(3)  The  county  board  of  supervisors,  composed  of  the  supervisors  of 
each  township  in  the  county,  which  equalizes  the  assessment  between 
townships,  villages,  etc. 

(4)  The  state  board  of  equalization,  consisting  of  the  lieutenant  gov- 
ernor, the  auditor-general,  the  secretary  of  state,  the  state  treasurer,  and 
the  commissioner  of  the  land  office. 

(5)  The  state  board  of  tax  commissioners,  created  in  1899,  formerly 
of  three,  now  of  five  members  appointed  by  the  governor  for  a  full 
term  of  six  years. 

(6)  The  township  treasurer,  who  acts  as  tax  collector. 

State  Revenues. 


A.    TAXES. 

I.    The  general  property  tax. 
1.  Base — 
a.    The  property  included  and  exempt. — All  property, 
real  and  personal,  within  the  jurisdiction  of  the  state, 
not  expressly  exempted,  is  subject  to  this  tax. 

(1)  "Real  property"  includes  all  lands  within  the  state,  and  all  build- 
ings and  fixtures  thereon,  and  appurtenances  thereto.  Ileal  estate  is 
assessed  in  the  township  or  place  where  situated  to  both  the  owner  and 
the  occupant.  Possessory  claims  to  homestead  lands  are  assessed  as 
personal  property. 


724 


WEALTH,  DEBT,  AND  TAXATION. 


(2)  "Personal  property  "  includes  all  moneys;  all  annuities  and  royal- 
ties; all  goods,  chattels,  and  effects  within  the  state;  all  ships,  boats, 
and  vessels,  and  their  appurtenances  belonging  to  inhabitants  of  this 
state,  whether  at  home  or  abroad;  all  goods,  chattels,  and  effects  be- 
longing to  inhabitants  of  this  state,  situate  without  this  state,  except 
property  actually  and  permanently  invested  in  business  in  another 
state;  all  credits  of  every  kind  belonging  to  inhabitants  of  this  state, 
over  and  above  the  amounts  owed  by  them;  all  shares  in  corporations 
organized  under  the  laws  of  this  state,  when  the  property  of  such  cor- 
porations is  not  exempt  or  is  not  taxable  in  itself,  or  when  the  personal 
property  is  not  taxed;  all  shares  in  banks  within  the  state,  at  their  cash 
value,  after  deducting  the  assessed  value  of  real  property  of  the  banks; 
all  shares  of  foreign  corporations,  except  national  banks,  owned  by  citi- 
zens of  the  state;  all  interests  owned  by  individuals  in  lands,  the  fee  of 
which  is  in  the  state  or  the  United  States;  all  buildings  and  improve- 
ments upon  leased  lands  except  when  real  property  is  assessed  to  same 
person;  tombs  and  vaults  for  hire  and  the  stock  of  any  corporation 
owning  them;  all  other  personal  property  not  specially  exempt;  all 
nursery  stock  and  trees:  all  produce  and  grain  on  hand,  stored  in  ware- 
house or  mill,  and  in  transit,  owned  within  the  state;  the  personal  prop- 
erty of  all  gas  and  coke  companies,  natural  gas  companies,  electric  light 
companies,  waterworks  companies,  and  hydraulic  companies,  to  be 
assessed  in  the  township,  village,  or  city  where  the  principal  works  are 
located,  the  mains,  pipes,  and  wires  of  such  companies  being  assessed  as 
personal  property;  the  personal  property  of  street  railroad,  plank  road, 
cable  or  electric  railroad,  or  transportation  companies,  bridge  com- 
panies, and  all  other  companies  not  required  to  pay  a  specific  tax  to  the 
state  in  lieu  of  all  other  taxes,  shall  be  assessed  in  the  township,  village, 
or  city  where  its  principal  business  office  is  situated,  and  the  track,  road, 
or  bridge  of  any  such  company  shall  be  held  to  be  personal  property,  and 
may  be  assessed  in  the  township,  etc.,  where  it  is  located,  used,  or  laid. 

(3)  Exemptions,  in  addition  to  all  public  property,  are:  Property  of 
library,  benevolent,  charitable,  educational,  and  scientific  institutions; 
houses  of  public  worship  and  parsonages;  cemeteries;  the  property  of 
persons  who,  in  the  opinion  of  the  supervisor  and  board  of  review,  by 
reason  of  poverty,  are  unable  to  contribute  toward  the  public  charges; 
property  of  state  and  local  agricultural  societies;  parks  and  armories; 
property  of  posts  of  the  Grand  Army  of  the  Republic,  Sons  of  Veterans, 
Union  Veterans'  Unions,  and  of  Women's  Relief  Corps,  of  all  Young 
Men's  Christian  Associations,  and  of  Women's  Christian  Temperance 
Union  associations,  Young  People's  Christian  Unions,  and  similar  asso- 
ciations; pensions  receivable  from  the  United  States;  property  of 
Indians  who  are  not  citizens ;  the  library,  family  pictures,  schoolbooks, 
one  sewing  machine,  and  wearing  apparel  used  and  owned  by  each 
individual  or  family;  household  furniture,  provisions,  and  fuel  to  the 
value  of  $500  to  each  household;  working  tools  of  any  mechanic  to 
$100:  fire  apparatus  of  organized  companies;  all  mules,  horses,  and 
cattle  not  over  one  year  old,  all  sheep  and  swine  not  over  six  months 
old,  and  all  domesticated  birds;  personal  property  owned  and  used  by 
any  householder  in  connection  with  his  business  to  the  value  of  $200; 
all  property  of  the  Woman's  Auxiliary  Society  of  the  University  of 
Michigan. 

The  law  does  not  expressly  provide  for  mortgages,  but  they  are 
regarded  as  taxable  property  of  the  mortgagee.  Personal  property  sub- 
ject to  a  mortgage  may  be  taxed  in  the  hands  of  the  person  in  possession. 

Until  1901  railroads  were  exempt  from  the  general  property  tax 
by  virtue  of  paying  a  "specific"  tax  on  gross  earnings,  but  since  then 
they  have  been  taxed  for  state  taxation  upon  all  their  property,  real  and 
personal,  and  franchises,  "said  franchises  not  to  be  directly  assessed,  but 
to  be  taken  into  consideration  in  determining  the  value  of  other  prop- 
erty." The  same  general  principle  is  made  by  the  statute  applicable  to 
express  companies,  car  companies,  fast  freight  lines,  and  union  station 
and  depot  companies. 

b.  Assessment. — In  general,  there  is  but  one  com- 
plete assessment  roll  for  state,  county,  and  municipal 
taxes,  but  incorporated  villages  and  certain  cities  may 
cause  a  separate  roll  to  be  made  up  for  their  own  taxa- 


tion. The  state  assessment,  determined  by  the  state 
board  of  equalization  for  five  years,  is  in  effect  a  mere 
apportionment  of  the  burden  of  state  government 
among  the  counties,  irrespective  of  the  annual  local 
assessment  upon  which  the  state  tax  is  actually  col- 
lected. The  township,  village,  ward,  or  city  is  the 
unit,  and  the  initial  assessment  is  made  by  the  town- 
ship supervisor,  or,  where  a  city  charter  otherwise  pro- 
vides, by  some  assessor  or  board  of  assessors.  The 
assessment  of  all  property  is  made  annually  and  refers 
to  the  second  Monday  in  April.  Property  is  assessed 
to  the  owner  or  person  in  possession,  and  personal 
property  in  general  follows  the  situs  of  that  person, 
except  in  specified  cases  in  which,  on  account  of  liability 
to  evasion,  the  situs  of  the  property  itself  is  preferred. 
The  supervisor  must  require  (down  to  1899  he  might 
require)  a  sworn  statement  from  every  person  "of  full 
age  and  sound  mind,"  as  to  his  property;  and  he  may 
require  persons  claiming  to  have  no  property  to  take 
oath  to  that  effect.  The  value  assigned  to  the  property 
by  the  owner  is  not  taken  as  conclusive,  it  being  the 
duty  of  the  supervisor  to  make  the  valuation  at  the 
"cash  value,"  or  usual  selling  price,  where  the  prop- 
erty is.  The  assessment  proper  is  completed  by  the 
township  board  of  review,  which,  after  correcting  the 
roll,  is  required  formally  to  approve  it. 

Willful  neglect  by  the  owner  to  furnish  a  statement 
of  his  property  and  its  value  is  a  misdemeanor  for 
which  a  fine  not  to  exceed  $100  may  be  imposed,  or 
imprisonment  not  to  exceed  thirty  days  in  jail,  or  both. 
In  case'of  corporation  officials  these  penalties  are  $100 
to  $1,000  and  thirty  to  sixty  days  in  jail. 

Corporations  in  general  are  assessed  precisely  as 
individuals,  but  certain  classes  of  corporations,  which 
until  1902  paid  "specific"  taxes,  are  now  assessed  upon 
their  property  by  the  state  board  of  tax  commissioners. 
The  assessment  made  by  this  board  is  not  apportioned 
among  the  townships  or  counties  and  is  made  the  basis 
for  state  taxation  only. 

Since  1899  the  state  board  of  tax  commissioners  has 
had  supervisory  power  over  the  assessment  officials, 
and  the  power  to  compel  an  observance  of  the  law. 

Banks  are  assessed  upon  their  real  estate  only,  shares  of  the  capi- 
tal stock  being  assessed  at  their  cash  value  (less  the  value  of  the  real 
estate)  to  the  stockholders,  and  at  the  place  where  the  bank  is  located. 
Shareholders  residing  in  other  townships  in  the  same  county  are  assessed 
for  their  shares  in  their  home  townships.  The  cashier  of  the  bank  is 
made  the  agent  of  the  shareholders  for  the  payment  of  the  tax.  Private 
banks  are  assessed  on  their  tangible  property,  plus  the  excess  of  their 
credits  over  their  deposits  and  debts. 

Corporations  generally,  except  railroad,  insurance,  telegraph,  and 
banking  companies,  and  others  whose  assessment  is  specifically  pro- 
vided for,  are  assessed  upon  their  real  property,  plus  the  difference 
between  that  and  the  market  value  of  the  stock,  which  is  taken  to  repre- 
sent their  personal  property  or  franchises,  and  to  this  may  be  added  the 
excess  of  their  credits  over  their  bona  fide  debts.  Navigation  com- 
panies and  street  railroads  follow  this  general  rule.  (Citizens'  Street 
Railway  Co.  v.  Common  Council  of  Detroit,  125  Mich.,  673.) 

Until  1901  railroads  were  subject  to  a  specific  state  tax  on  gross 
receipts,  apportioned  according  to  earnings  per  mile  of  road  operated. 


TAXATION  AND  REVENUE  SYSTEMS— MICHIGAN. 


725 


But  since  1901  railroads  have  been  assessed  annually  by  the  board  of 
state  tax  commissioners  upon  all  their  property,  except  real  estate  not 
actually  occupied  in  the  exercise  of  their  franchises  nor  used  in  the  opera- 
tion of  their  road,  such  real  estate  being  taxed  like  other  real  estate  in  the 
townships.  The  same  applies  to  union  station  and  depot  companies 
and  other  car  companies,  and,  save  as  to  tangible  personalty,  to  express 
companies. 

Telegraph  and  telephone  companies  were,  until  1899,  assessed  by  a 
stutelxmrd,  composed  of  the  auditor-general,  the  state  treasurer,  and 
the  commissioner  of  the  land  office. 

c.  Equalization. — There  is  no  equalization,  so  called, 
between  individuals,  although  the  action  of  the  "board 
of  review"  in  connection  with  assessment  has  practi- 
cally that  effect. 

The  county  board  of  supervisors  equalizes  annually 
between  townships,  wards,  or  cities  in  their  county, 
making  such  additions  and  deductions  on  the  total 
value  of  real  estate  in  the  several  townships  as  will,  in 
their  judgment,  produce  relatively  an  equal  and  uni- 
form valuation  in  the  county.  The  effect  of  equaliza- 
tion in  this  manner  is  felt  entirely  in  the  apportionment 
of  state  and  county  taxes,  as  the  assessment  roll,  after 
it  leaves  the  hands  of  the  board  of  review,  is  not 
amended. 

The  state  board  of  equalization,  once  every  five 
years  (1896,  1901),  equalizes  the  valuation  of  all  prop- 
erty in  the  state,  except  that  paying  specific  taxes,  by 
adding  to  or  deducting  from  the  aggregate  valuation  of 
taxable  real  and  personal  property  such  percentages  as 
will  produce  relatively  equal  and  uniform  valuations 
between  the  several  counties.  This  forms  the  basis  of 
the  state  assessment  for  five  years. 

The  new  state  board  of  tax  commissioners,  created 
since  1899,  has  powers  analogous  to  those  of  boards  of 
equalization.  It  has  power  to  inspect  the  roll,  and 
after  a  public  hearing  at  which  the  supervisor  and  the 
interested  parties  are  present,  may  change  individual 
assessments,  add  property  omitted,  and  make  a  gen- 
eral review  of  the  roll. 
2.  Rate— 

The  rate  for  state  purposes  is  determined  each  year 
strictly  by  apportionment,  an  apparent  exception 
being  the  so-called  mill  tax  (one-fourth  of  1  mill)  on 
the  state  assessment  for  the  support  of  the  university. 
The  legislature  makes  such  appropriations  as  it  sees 
fit  and  directs  in  a  general  way  the  total  amount  of 
money  to  be  raised.  The  auditor-general  certifies  to 
the  clerk  of  each  county  (the  clerk  acts  as  county 
auditor),  or  to  the  proper  city  official,  that  proportion 
of  the  total  amount  to  be  raised  for  state  purposes 
which  the  state  assessment  in  each  county  or  city 
bears  to  the  total  assessed  valuation  of  the  state  as 
fixed  once  in  five  years  by  the  state  board  of  equaliza- 
tion. The  county  board  of  supervisors  apportions  the 
share  of  its  county  among  the  townships  on  the  basis 
of  the  annual  assessment  in  each,  and  the  supervisor 
in  each  township  apportions  the  amount  assigned  to 
the  township  among  the  individuals  in  proportion  to 


their  assessed  property.  There  is  thus  no  universal 
"state  rate"  save  in  connection  with  the  state  assess- 
ment. 

Under  the  new  tax  law,  which  made  railroad  and  kindred  com- 
panies subject  to  the  general  property  tax,  the  rate  for  those  compa- 
nies is  determined  by  the  auditor-general,  who  is  instructed  to  ascertain 
the  rate  by  dividing  the  total  taxes  raised  on  other  property  in  the 
state  by  the  total  assessed  valuation  of  such  other  property. 

Until  1899  the  rate  for  telegraph  and  telephone  companies  was  the 
average  rate  of  all  taxation,  general  and  local,  levied  on  other  property, 
and  was  determined  by  the  state  board  of  assessment  for  those  com- 
panies. 

3.  Collection — 
In  general,  all  taxes,  state  and  local,  except  those 
called  "specific"  (which  still  include  the  tax  on  rail- 
roads, etc.,  under  the  new  law),  are  collected  by  the 
township  treasurers.  The  taxes  due  from  taxpayers 
become  a  debt  to  the  township,  and  are  secured  by  a 
lien  on  the  property,  attaching  on  the  1st  day  of 
December.  Taxes  are  delinquent  on  the  10th  of  Janu- 
ary, when  the  collection  fee  becomes  4  per  cent ;  but  if 
the  treasurer  is  apprehensive  of  the  loss  of  any  per- 
sonal tax,  he  may  proceed  to  collect  it  by  seizing  the 
property  and  bringing  suit  in  December,  and  in  that 
case  the  collection  fee  is  4  per  cent.  After  the  10th  of 
January  the  treasurer  is  to  make  a  personal  demand 
on  each  taxpayer  who  is  delinquent,  and  in  case  pay- 
ment is  not  made,  collects  by  seizure  and  sale. 
The  state's  portion  is  turned  over  to  the  county  treas- 
urer, and  by  him  to  the  state  treasurer. 

The  tax  on  railroad  and  kindred  companies  under  the  new  law  is  a 
lien  upon  the  real  estate  of  the  corporations,  and  is  payable  to  the  state 
treasurer  on  or  before  the  first  Monday  in  January,  and  if  not  paid  on 
or  before  February  1,  involves  a  penalty  of  2  per  cent  a  month,  and 
may  be  collected  by  suit. 

The  tax  on  telegraph  and  telephone  companies  was,  so  long  as  these 
companies  remained  under  the  general  property  tax,  collected  by  the 
state  treasurer. 

The  township  treasurer  as  collector  is  paid  by  a  fee  of  1  per  cent 
which  is  added  to  the  taxes. 

II.  Poll  tax. 

There  is  no  state  poll  tax. 

III.  Inheritance  tax. 

All  real  and  personal  property  in  the  state  of  over 
$500  passing  by  inheritance  or  by  gift  intended  to  take 
effect  after  death,  except  to  persons  or  corporations 
exempt,  is  subject  to  a  tax  of  5  per  cent  of  its  clear 
market  value.  Exempt  is  property  passing  to  the 
father,  mother,  husband,  wife,  child,  brother,  sister, 
wife  or  widow  of  a  son,  husband  of  a  daughter,  or 
adopted  child,  or  to  or  for  the  use  of  any  lineal  de- 
scendant, unless  it  be  personal  property  of  the  value 
of  $5,000  or  more,  in  which  case  the  tax  is  1  per  cent 
of  the  clear  market  value.  This  tax  is  paid  to  the  state 
for  the  benefit  of  educational  funds. 

IV.  Corporation  taxes. 

Most  corporations  are  taxed  under  the  general  prop- 
erty tax.     Until  after  the  adoption  of  the  constitu- 


726 


WEALTH,  DEBT,  AND  TAXATION. 


tional  amendment  of  1900,  and  the  legislation  subse- 
quent thereto,  certain  corporations  paid  "specific 
taxes,"  and  they  are  still  treated  in  a  manner  suffi- 
ciently different  from  other  corporations  and  from 
natural  persons  to  warrant  their  mention  under  this 
heading.  These  corporations  are  railroad,  river  im- 
provement, insurance,  plank  road,  express,  telegraph, 
telephone,  and  car  companies.  The  taxes  were  in 
lieu  of  all  other  taxes  except  on  real  estate  not  neces- 
sarily connected  with  the  business  of  the  corporations. 

The  present  method  of  taxing  railroad  and  kindred  companies 
and  express  companies  has  been  described  under  the  general  property 
tax.  Formerly  they  were  taxed  on  their  gross  receipts  and  paid  directly 
to  the  state  treasury.  The  rates  for  railroads  have  varied  from  time  to 
time.  They  were  fixed  in  1897  as  follows:  Upon  gross  earnings  not  ex- 
ceeding $2,000  per  mile,  2J  per  cent;  over  $2,000  and  not  exceeding 
$4,000  per  mile,  3J  per  cent;  over  $4,000  and  not  exceeding  $6,000  per 
mile,  4  per  cent;  over  $6,000  and  not  exceeding  $8,000  per  mile,  4 J  pel- 
cent;  over  $8,000  per  mile,  5  per  cent. 

Express  companies,  while  under  the  "specific"  tax  system,  were 
required  to  pay  on  their  gross  receipts  in  Michigan.  Until  1898  the  rate 
was  1  per  cent;  after  that,  5  per  cent.  In  1901  they  were  brought  under 
the  general  property  tax  with  railroads. 

Since  1899  telegraph  and  telephone  companies  have  been  taxed  upon 
their  gross  receipts  in  Michigan  at  the  rate  of  3  per  cent. 

Foreign  life  insurance  companies  are  taxed  upon  gross  premiums  re- 
ceived in  Michigan  at  the  rate  of  2  per  cent;  plate  glass,  accident,  live 
stock,  steam  boiler,  and  fidelity  insurance  companies  pay  at  the  rate  of 
2  per  cent;  and  foreign  fire  and  marine  insurance  companies  at  the  rate 
of  3  per  cent.  A  retaliatory  tax  is  laid  on  insurance  companies  incorpo- 
rated in  states  which  levy  heavier  taxes  on  Michigan  companies. 

River  improvement  companies  pay  1  per  cent  per  annum  on  paid-up 
capital. 

Road  companies  pay  2J  per  cent  per  annum  on  gross  earnings. 

V.  Business  taxes  and  licenses. 

Itinerant  vendors,  $2.5  per  annum — collected  by  the  secretary  of  state. 
Hawkers  and  peddlers — on  foot,  $15;  1  horse,  $40;  more  than  1  horse, 
$75;  on  railroad  or  steamboat,  $100;  taking  orders,  $50 — collected  by  the 
state  treasurer.  Auction  duties — sales  of  spirits  and  wines,  2 J  per  cent; 
goods  imported  from  outside  the  United  States,  1$  per  cent — collected 
by  county  treasurers  and  paid  to  the  state.  Liquor  tax — the  state  does 
not  share  in  the  ordinary  liquor  tax  or  licenses  which  are  collected  by 
the  county  treasurer,  but  levies  a  specified  tax  on  the  "  business  of  sell- 
ing spirituous,  intoxicating,  malt,  brewed,  and  fermented  liquors  in  the 
state  of  Michigan  to  be  shipped  from  without  the  state"  at  wholesale,  by 
persons  not  resident  in  the  state;  the  annual  rates  are  $300  for  spirituous 
and  intoxicating  liquors,  and  $100  for  malt  liquors— collected  by  the 
auditor-general. 

B.    FEES. 

To  secretary  of  state. — For  filing  articles  of  incorporation,  50  cents; 
for  recording  or  copying  articles  of  association,  20  cents  per  folio  of  100 
words;  for  seal,  25  cents;  franchise  fees,  one-half  of  1  mill  on  each  dollar 
of  authorized  capital  stock. 

County  Revenues. 

a.   TAXES. 

I.    The  general  property  tax. 
1.  Base — 
The  property  included  and  the  assessment  and  equal- 
ization are  the  same  for  the  county  tax  as  for  the  state. 


2.  Rate— 

The  amount  to  be  raised  is  levied  by  the  county 
board  of  supervisors  and  apportioned  among  the  town- 
ships. 

3.  Collection — 

Same  as  for  the  state  tax. 
II,  III,  and  IV.  Poll  tax,  inheritance  tax,  and  corpora- 
tion taxes. 

There  are  no  poll,  special  corporation,  or  inheritance 
taxes  for  county  purposes. 
V.  Business  taxes  and  licenses. 

Liquors. — Upon  the  business  of  selling  liquors  the  rates  are:  Selling 
at  retail,  spirituous  or  malt,  $500;  malt  liquors  at  wholesale  or  retail,  or 
both,  $500:  spirits  at  wholesale,  $500;  spirits  at  wholesale  and  retail, 
$800;  manufacturing  malt  liquors,  $65;  manufacturing  spirits,  $800. 
This  tax  is  collected  by  the  county  treasurer,  one-half  retained  for  the 
benefit  of  the  county  and  one-half  turned  over  to  the  township  in  which 
the  business  is  located. 

Municipal  Revenues. 

The  divisions  of  local  government  are  the  townships, 
the  villages,  the  cities,  the  road  districts,  and  the 
school  districts  which  are  divisions  of  the  township; 
but  under  certain  circumstances  cities  or  villages  may 
be  the  school  districts. 

A.    TAXES. 

I.  The  general  property  tax. 

1.  Base — 

The  property  included  and  the  assessment  and  equal- 
ization are,  in  general,  the  same  as  for  state  taxes, 
except  that  villages  and  certain  cities  may  make  up 
separate  rolls. 

2.  Rate- 
In  townships  the  amount  to  be  raised  by  taxation  is 

fixed  by  the  inhabitants  at  town  meeting,  subject  to 
certain  legal  limitations.  If  the  town  meeting  fails  to 
fix  the  amount,  the  trustees  may  levy  within  certain 
limits. 

In  villages  the  power  to  levy  taxes  rests  with  the 
village  council,  under  restrictions  imposed  by  law.  In 
cities  the  city  council  fixes  the  rate,  subject  also  to 
many  legal  restrictions. 

3.  Collection — 

This  is,  in  general,  the  same  as  for  state  taxes.  Cities, 
however,  may  collect  in  two  installments — one  for 
general  and  one  for  city  taxes. 

II.  Poll  tax. 

a.  General. — The  village  council  has  the  power  to 
levy  a  poll  tax  of  $1  on  all  males  as  above,  except 
active  members  of  the  fire  department. 

b.  Road. — All  male  inhabitants  of  the  state  over  21 
and  under  50  years  of  age,  except  pensioners  of  the 
United  States,  persons  exempted  by  the  military  laws, 
those  who  are  mentally  incompetent,  and  paupers,  are 
liable  to  assessment  for  highway  labor  one  day  in  each 
year  in  the  road  district  where  he  resides. 


TAXATION  AND  REVENUE  SYSTEMS— MINNESOTA. 


727 


III  and  IV.  Inheritance  tax  and  corporation  taxes. 

There  are  no  municipal  inheritance  or  corporation 
taxes. 

V.  Business  taxes  and  licenses. 

In  general,  villages  and  cities  may  license,  at  rates  to  be  fixed  by  the 
councils,  billiard  tables  and  ball  alleys;  taverns  and  eating  houses:  pub- 
lic shows  and  exhibitions;  auctioneers,  hawkers  and  peddlers,  transient 
traders,  and  dealers;  hacks  and  other  public  vehicles;  solicitors  for  pas- 
sengers or  baggage;  wharf  boats,  ferries,  and  toll  bridges;  maternity 
hospitals;  and  city  boards  of  health  may  charge  fees  for  examination  of 
plumbers. 

Municipal  governments  receive  one-half  the  liquor  taxes  collected  by 
the  county. 

There  is  a  special  dog  tax  collected  by  a  dog  warden  in  each  township 
to  form  a  fund  for  the  payment  of  damages  done  by  dogs  to  sheep. 
Cities  may  also  levy  a  tax  on  dogs. 

F.    SPECIAL    ASSESSMENTS. 

Special  assessments  may  be  made  to  cover  the  cost 
in  whole  or  in  part  of  any  local  or  public  improvement. 
Special  provisions  are  made  for  "drains"  ordered  by 


the  county  supervisors  under  a  commissioner  of  drains. 
The  village  and  city  council  may  order  assessments  for 
certain  public  improvements.  They  are  estimated  by 
a  special  board  of  assessors  for  the  special  district 
affected,  according  to  frontage  or  benefits,  pro  rata 
upon  the  lots  and  premises. 

School  Revenues. 

In  school  districts  the  school  boards  estimate  the 
amount  to  be  raised  and  the  levy  is  made  by  the  town- 
ship. 

Road  Districts,  Taxes. 

Road  district  taxes  are  levied  by  the  road  commis- 
sioner or  by  township  vote,  and  the  rate  is  stated  both 
in  days'  labor,  per  $100  of  assessed  valuation,  and  in 
money.  These  are  generally  payable  in  labor  but 
may,  under  certain  circumstances,  be  commuted  into 
money. 


MINNESOTA. 


Minnesota  derives  her  revenues  mainly  from  the  gen- 
eral property  tax.  There  is,  however,  an  inheritance 
tax,  direct  and  collateral.  Public  service  companies 
are  taxed  by  a  percentage  on  their  gross  receipts. 

constitutional  provisions. 

ARTICLE   IX. 

Sec.  1.  All  taxes  to  be  raised  in  this  state  shall  be  as  nearly  equal  as 
may  be,  and  all  property  on  which  taxes  are  to  be  levied  shall  have  a 
cash  valuation,  and  be  equalized  and  uniform  throughout  the  state :  Pro- 
vided, That  the  legislature  may,  by  general  law  or  special  act,  authorize 
municipal  corporations  to  levy  assessments  for  local  improvements  upon 
the  property  fronting  upon  such  improvements,  or  upon  the  property  to 
be  benefited  by  such  improvements,  or  both,  without  regard  to  a  cash 
valuation,  and  in  such  manner  as  the  legislature  may  prescribe:  (And 
provided  further,  That  for  the  purpose  of  defraying  expenses  of  laying 
water  pipes  and  supplying  any  city  or  municipality  with  water,  the  leg- 
islature may,  by  general  or  special  law,  authorize  any  such  city  or  mu- 
nicipality, having  a  population  of  five  thousand  or  more,  to  levy  an 
annual  tax  or  assessment  upon  the  lineal  foot  of  all  lands  fronting  on  any 
water  main  or  water  pipes  laid  by  such  city  or  municipality  without 
regard  to  the  cash  value  of  such  property.) 

And  provided  further ,  That  there  may  be  by  law  levied  and  collected 
a  tax  upon  all  inheritances,  devises,  and  bequests,  legacies,  and  gifts  of 
every  kind  and  description  above  a  fixed  and  specified  sum,  of  any  and 
all  natural  persons  or  corporations.  Such  tax  above  each  exempted 
sum  may  be  uniform,  or  it  may  be  graded  or  progressive,  but  shall  not 
exceed  a  maximum  rate  of  five  per  cent. 

Sec.  2.  The  legislature  shall  provide  for  an  annual  tax  sufficient  to 
defray  the  estimated  (ordinary)  expenses  of  the  state  for  each  year;  and 
whenever  it  shall  happen  that  such  ordinary  expenses  of  the  state  for 
any  year  shall  exceed  the  income  of  the  state  for  such  year,  the  legisla- 
ture shall  provide  for  levying  a  tax  for  the  ensuing  year  sufficient,  with 
other  sources  of  income,  to  pay  the  deficiency  of  the  preceding  year,  to- 
gether with  the  estimated  expenses  of  such  ensuing  year. 

1  This  compilation  is  derived  mainly  from  the  following  sources: 
The  General  Statutes  of  Minnesota,  1894:   West  Publishing  Com- 
pany, St.  Paul,  Minn.,  1894. 
Laws  of  Minnesota,  1895,  1897,  1899,  1901,  1902,  1903. 


(But  no  law  levying  a  tax  for  the  payment  of  interest  or  principal  of 
the  bonds  denominated  "Minnesota  state  railroad  bonds"  shall  take 
effect  unless  submitted  to  a  vote  of  the  people  and  adopted  by  a  majority 
vote.) 

Sec.  3.  Laws  shall  be  passed  taxing  all  moneys,  credits,  investments 
in  bonds,  stocks,  joint-stock  companies,  or  otherwise;  but  public  bury- 
ing grounds,  public  schoolhouses,  public  hospitals,  academies,  colleges, 
universities,  and  all  seminaries  of  learning,  all  churches,  church  property 
used  for  religious  purposes,  and  houses  of  worship,  institutions  of  purely 
public  charity,  public  property  used  exclusively  for  any  public  purpose, 
and  personal  property  to  an  amount  not  exceeding  in  value  two  hundred 
dollars  for  each  individual,  shall,  by  general  laws,  be  exempt  from  taxa- 
tion. 

Sec.  4.  Laws  shall  be  passed  for  taxing  the  notes  and  bills  discounted 
or  purchased,  moneys  loaned,  and  all  other  property,  effects,  or  dues  of 
every  description  of  all  banks  and  of  all  bankers,  so  that  all  property 
employed  in  hanking  shall  always  be  subject  to  a  taxation  equal  to  that 
imposed  on  the  property  of  individuals. 

ARTICLE   IV. 

Sec  32a.  Any  law  providing  for  the  repeal  or  amendment  of  any  law 
or  laws  heretofore  enacted,  which  provides  that  any  railroad  company 
now  existing  in  this  state,  or  operating  its  road  therein,  or  which  may 
be  hereafter  organized,  shall  in  lieu  of  all  other  taxes  and  assessments 
upon  their  real  estate,  roads,  rolling  stock,  and  other  personal  property, 
at  and  during  the  time  and  periods  therein  specified,  pay  into  the  treas- 
ury of  this  state  a  certain  percentage  therein  mentioned  of  the  gross 
earnings  of  such  railroad  companies  now  existing  or  hereafter  organized, 
shall,  before  the  same  shall  take  effect  and  be  in  force,  be  submitted  to  a 
vote  of  the  people  of  the  state  and  be  adopted  and  ratified  by  a  majority 
of  the  electors  of  the  state  voting  at  the  election  at  which  the  same  shall 
be  submitted  to  them. 

Sec.  33.  The  legislature  shall  pass  no  local  or  special  law  regulating 
the  building  or  repairing  of  schoolhouses  and  the  raising  of  money  for 
such  purposes,  exempting  property  from  taxation,  or  authorizing  public 
taxation  for  a  private  purpose. 

ARTICLE   XI. 

Sec  5.  Local  taxation. — Any  county  and  township  organization 
shall  have  such  powers  of  local  taxation  as  may  be  prescribed  by  law. 


728 


WEALTH,  DEBT,  AND  TAXATION. 


Amended,  1897.  (The  legislature  may  impose  upon  the  property 
within  this  state  of  any  and  all  owners  or  operators,  of  any  and  all  sleep- 
ing, parlor,  and  drawing  room  cars,  which  run  into  or  through  this  state; 
also  upon  the  property  within  the  state  of  any  and  all  telegraph  and  tele- 
phone companies  in  the  state;  also  upon  the  property  within  the  state 
of  all  express  companies,  domestic  insurance  companies,  operators  of 
mines,  boom  companies,  shipbuilders  (provided  that  the  amendment 
does  not  apply  to  railroad  property)  a  tax  on  property  uniform  with 
other  taxes  or  upon  net  earnings,  graded  or  progressive,  or  both.) 

ARTICLE   IX. 

Amended,  1898.  State  road  and  bridge  fund. — (The  legislature  is 
authorized  to  add  to  such  fund  for  the  purpose  of  constructing  or  im- 
proving roads  and  bridges  of  this  state  by  providing,  in  its  discretion, 
for  an  annual  tax  levy  upon  the  property  of  this  state  of  not  to  exceed 
in  any  year  one-twentieth  of  one  mill  on  all  the  taxable  property  within 
the  state.) 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are : 

(1)  Township  assessor,  elected  for  one  year. 

(2)  City  assessor,  elected  annually  by  the  common  council;  also 
village  assessor,  elected  annually  by  the  council. 

(3)  Town  board  of  review,  composed  of  the  supervisor  of  each  town, 
the  assessor,  recorder,  and  president  of  each  incorporated  village,  and 
the  assessor,  recorder,  and  mayor  of  each  city. 

(4)  County  board  of  equalization,  composed  of  the  county  commis- 
sioners, and  the  county  auditor. 

(5)  State  board  of  equalization,  composed  of  the  governor,  auditor  of 
state,  and  the  attorney-general,  with  one  qualified  elector  from  each 
judicial  district  of  the  state  to  be  appointed  by  the  governor  every  two 
years. 

(6)  County  treasurer,  who  is  collector  of  taxes,  elected  for  two  years. 

State  Revenues. 

a.   TAXES. 

I.  The  general  property  tax. 
1.  Base — 
a.   The  property  included  and  exempt. — All  real  and 
personal  property  in  the  state,  and  all  personal  prop- 
erty of  persons  residing  therein,  is  subject  to  taxation, 
except  as  expressly  exempted  or  upon  the  earnings  of  j 
which  a  percentage  is  collected  in  lieu  of  the  property  j 
tax. 

(1)  "  Real  property  "  includes,  for  purposes  of  taxation,  the  land  itself,    ! 
and  all  buildings,  structures,  and  improvements,  trees  or  other  fixtures 
all  rights  and  privileges  appertaining,  and  all  mines,  minerals,  quarries, 
and  fossils  in  and  under  the  same. 

Mortgages  on  lands,  etc.,  are  taxable  as  personal  property. 

Lands  of  any  railroad  company  exempted  by  the  gross  earnings  tax 
law  become  subject  to  taxation  "as  soon  as  sold,  leased,  or  contracted 
to  be  sold  or  leased." 

Whenever  any  special  stock  and  land  stock,  or  any  other  writing  or 
instrument  whatever,  is  issued  by  any  railroad  company  to  any  person 
with  a  view  to  secure  to  the  person  any  right,  title,  or  interest  in  the 
lands,  that  interest  becomes  taxable  to  the  holder  as  other  real  prop- 
erty in  the  state. 

(2)  "Personal  property"  includes  all  goods,  chattels,  moneys, 
credits,  and  effects  wheresoever  they  may  be,  all  moneys  at  interest 
within  or  without  the  state  due  the  person  to  be  taxed  more  than  he 
pays  interest  for,  and  all  other  debts  due  such  persons  more  than  their 
indebtedness;  all  public  stocks  and  securities;  all  stock  in  corporations 


(except  national  banks)  out  of  the  state  owned  by  inhabitants  of  the 
state;  the  income  of  any  annuity  unless  the  capital  be  taxed  within  the 
state;  bank  shares;  improvements  on  lands  of  which  the  fee  is  vested 
in  the  United  States,  or  corporations  whose  property  is  not  subject  to  the 
same  mode  and  rule  of  taxation  as  other  property. 

(3)  Exemptions,  in  addition  to  public  property,  are:  Academies, 
colleges,  and  institutions  of  learning;  churches;  cemeteries;  institu- 
tions of  purely  public  charity,  hospitals,  and  their  endowments;  fire 
engines  and  horses;  public  libraries;  and  personal  property  of  each  indi- 
vidual up  to  $100  in  value;  also  the  property  of  agricultural  societies, 
incorporated  under  the  state  law,  and  of  camp  meeting  associations. 

b.  Assessment. — The  assessment  is  made  with  refer- 
ence to  the  holding  and  value  on  May  1.  Real  property 
is  to  be  listed  and  assessed  every  even  numbered  year; 
personal  property,  annually.  The  lists  are  to  be  made 
under  oath. 

The  lists  are  to  be  made  under  oath  but  the  valuation 
is  to  be  fixed  by  the  assessors,  each  item  at  its  true 
value  in  money.  Shares  of  stock  in  corporations, 
taxed  on  capital  and  property,  need  not  be  listed. 
From  the  gross  amount  of  credits,  which  may  include 
grain  to  the  value  of  $300  held  by  the  producer  for  sale, 
may  be  deducted  bona  fide  indebtedness,  except  insur- 
ance premium  notes  and  subscriptions  to  capital  stock 
or  to  charitable  institutions.  Banks  do  not  have 
this  privilege  of  deduction  from  credits. 

Submitting  a  false  list  is  a  misdemeanor,  subject  to 
a  fine  of  $100,  or  imprisonment  for  three  months. 

Real  estate  is  assessed  in  the  even  numbered  years 
upon  actual  view,  at  its  full  value,  including  the  value 
of  all  improvements.  The  value  of  the  land,  exclusive 
of  improvements,  is  also  to  be  determined.  In  odd 
numbered  }rears  the  assessor  is  to  correct  the  assess- 
ment for  new  structures  or  losses. 

Property  undervalued  by  county  officials  or  unlawfully  omitted  from 
the  assessment  may  be  called  to  the  notice  of  the  governor,  who  shall 
thereupon  appoint  an  examiner  to  assess  the  property  at  its  true  value. 
Taxes  so  assessed  are  a  lien  on  all  real  property  of  the  owner  in  the  county. 

The  auditor  of  the  state  is  to  certify  to  the  counties  lists  of  public  and 
railroad  lands  becoming  taxable. 

Corporations  are  assessed  on  their  real  estate  and  personal  property 
and  also  on  capital  stock.  From  the  market  value  of  the  shares  of  stock 
is  deducted  the  amount  of  all  indebtedness  and  the  value  of  the  property, 
real  and  personal,  and  the  balance  is  listed  as  "bonds  and  stocks." 

Mortgages  of  building  and  loan  associations  which  are  represented  in 
their  stock  are  not  to  be  assessed  as  mortgages. 

Bank  stock  is  assessed  where  the  bank  is  located.  The  accounting 
officer  of  the  bank  is  to  furnish  a  statement  of  the  stockholders  and  the 
number  of  shares.  The  amount  of  investments  in  real  estate  is  to  be 
deducted  from  the  capital  and  surplus  fund,  and  the  remainder  is  taken 
as  the  basis  for  valuation  of  the  shares  in  the  hands  of  the  stockholders. 

c.  Equalization. — The  town  board  of  review  exam- 
ines the  assessment  in  its  town  or  district,  supplies 
omissions,  and  hears  complaints. 

The  county  board  of  equalization  examines  and 
compares  the  assessments  of  the  several  towns  or  dis- 
tricts of  the  county.  It  may  raise  or  lower  the  value 
of  real  and  personal  property,  but  the  aggregate  value 
is  not  to  be  reduced. 


TAXATION  AND  REVENUE  SYSTEMS— MINNESOTA. 


729 


The  state  board  of  equalization  equalizes  between  the 
several  counties  of  the  state,  or  towns,  villages,  or  cities 
therein.     It  is  not  to  reduce  the  valuation  of  all  the 
property  in  the  state  more  than  1  per  cent. 
2.  Rate— 

Taxes  are  required  to  be  levied  in  specific  amounts 
and  the  rate  to  be  determined  from  the  equalized 
valuation. 

In  the  fiscal  year  1902  the  legislature  levied  a  tax  of  $760,000  on  all 
the  taxable  property  of  the  state,  but  the  rate  was  not  to  exceed  1T35 
mills  on  each  dollar. 

.3.   Collection — 

Taxes  for  state,  county,  city,  town,  school,  poor, 
bridge,  road,  or  other  purposes  are  collected  by  the 
county  treasurer.  The  treasurer  gives  notice  when 
he  will  attend  in  each  town  and  district  to  receive  the 
taxes. 

Taxes  assessed  on  personal  property  are  a  lien  after 
judgment  is  rendered,  and  are  deemed  delinquent  on 
March  1 ,  when  a  penalty  of  10  per  cent  attaches.  After 
April  1  they  may  be  collected  by  distraint  and  sale. 

Taxes  on  real  property  are  a  lien  thereon  from  the 
first  Monday  in  January,  and  if  unpaid  on  June  1,  a 
penalty  of  1 0  per  cent  attaches.  They  may,  however, 
be  paid  in  two  installments,  one-half  prior  to  June  1 
and  one-half  prior  to  November  1 .  On  the  first  Mon- 
day in  January  an  additional  penalty  of  5  per  cent  is 
charged  on  delinquent  taxes,  and  on  the  second  Monday 
in  May  the  county  auditor  is  to  sell  all  land  against 
which  judgment  has  been  rendered. 

II.  Poll  tax. 

There  is  no  state  poll  tax. 

III.  Inheritance  tax. 

Minnesota  has  endeavored  to  frame  several  inherit- 
ance tax  laws,  but  each  has  been  declared  unconstitu- 
tional. 

Law  of  1901  annulled,  State  v.  Bazelle  (92  N.  W., 
415). 

Law  of  1902  annulled,  State  v.  Harvey  (95  N.  W., 
764). 

A  third  inheritance  tax  law  was  passed  in  1905. 

The  constitution  provides  for  an  inheritance  tax. 
(See  Art.  IX,  sec.  1.) 

IV.  Corporation  taxes. 

All  railroad  companies  owning  or  operating  lines  in  the  state  are  as- 
sessed upon  the  basis  of  gross  earnings  in  lieu  of  other  taxes  on  property 
used  for  railroad  purposes.  The  tax  is  graduated  according  to  the  num- 
ber of  years  the  road,  or  30  miles  thereof,  has  been  completed.  The  rate 
during  the  fir^t  three  years  is  1  per  cent,  during  the  next  seven  years  2 
per  cent,  and  after  ten  years  3  per  cent. 

The  tax  is  payable  to  the  treasurer  by  March  ] ,  annually,  or  may  be 
paid  half  on  February  1  and  half  on  August  1 .  Failure  for  thirty  days 
after  notice  to  make  report  of  gross  earnings  is  penalized  by  the  addition 
of  25  per  cent  to  the  tax.     The  penalty  for  nonpayment  is  5  per  cent. 

Railroads,  beginning  with  1903,  are  to  pay  a  tax  of  4  per  cent  per  an- 
num on  the  gross  earnings  derived  from  operation  within  the  state,  in 
lieu  of  all  other  taxes  on  the  property  and  franchises  operated  for  rail- 
road purposes. 


Sleeping  car,  drawing  room  car,  and  parlor  car  companies  are  taxed 
upon  gross  receipts  from  business  done  within  the  state,  such  tax 
being  in  lieu  of  all  other  taxes.  The  tax  is  at  the  rate  of  3  per  cent 
upon  the  gross  receipts  as  reported  to  the  state  auditor  on  May  1  for 
the  preceding  year.  There  is  a  penalty  of  10  per  cent  for  failure  to 
pay  at  the  time  required. 

Express  companies  are  taxed  6  per  cent  per  annum  on  the  gross 
receipts  from  business  in  the  state  in  lieu  of  taxes  on  personal  property. 

Freight  line  and  equipment  companies  are  taxed  upon  the  amount 
and  value  of  that  part  of  the  capital  stock  which  represents  capital 
and  property  used  in  the  state.  The  value  of  real  estate  assessed  and 
taxed  locally  is  to  be  deducted.  The  assessment  is  made  by  the  state 
board  of  equalization  on  the  basis  of  a  statement  by  the  company. 
The  state  auditor  is  to  charge  and  collect  a  sum  in  the  nature  of  an 
excise  or  license  at  the  rate  of  2  per  cent  of  the  assessed  valuation 
(supra).  For  failure  to  pay  in  November,  as  required,  a  penalty  of  50 
per  cent  is  added. 

Telegraph  lines  are  assessed  by  the  state  board  of  equalization  at 
their  true  cash  value  determined  by  statements  by  the  company.  The 
state  board  also  determines  the  rate  of  tax  to  be  levied,  not  to  exceed 
the  average  rate  of  taxes — general, municipal,  and  local — levied  through- 
out the  state.  This  tax  is  in  lieu  of  all  other  taxes,  state  and  local, 
and  is  payable  into  the  state  treasury  on  the  1st  day  of  January. 
Penalty  for  failure  to  report  is  the  addition  of  30  per  cent  to  the  assessed 
value. 

Telephone  companies  are  required  to  pay  3  per  cent  per  annum  on 
their  gross  earnings  in  lieu  of  other  taxes. 

AH  insurance  companies  are  required  to  pay  to  the  state  2  per  cent 
per  annum  on  gross  premiums  received  in  the  state.  Such  companies 
are  also  taxed  on  their  property,  except  that  domestic  insurance  com- 
panies are  taxed  only  on  real  estate. 

V.  Business  taxes  and  licenses. 

Vessels  owned  in  or  hailing  from  any  port  of  the  state,  employed  in 
navigation  of  international  waters,  pay  annually  3  cents  per  net  ton  of 
their  registered  tonnage.  This  tax  is  in  lieu  of  all  other  taxes — state 
and  local. 

Annual  licenses  are  collected  as  follows:  Agents  of  railroads,  steam- 
boats, and  steamboat  lines,  $3;  local  warehouses,  $1;  dealers  in  milk 
and  cream,  SI;  commission  merchants,  $1. 

VI.  Other  licenses. 

Resident  hunters,  per  annum,  $100;  nonresident  hunters,  to  hunt  big 
game,  $25;  to  hunt  small  game,  $10. 

B.    FEES. 

Corporations,  filing  articles  of  association,  first  $50,000  capital  stock, 
$50;  every  additional  $10,000,  $5;  increase,  every  additional  $10,000, 
$5.  Insurance,  filing  copy  of  charter,  $25;  annual  statement,  $20; 
certificate  of  authority,  $1. 

C.       LEASES    AND    ROYALTIES    FROM    STATE    LANDS. 

The  state  is  in  receipt  of  considerable  income  from 
leases  of  state  school  and  other  lands.  It  also  receives 
25  cents  a  ton  royalty  on  all  iron  ore  mined  on  lands 
leased  by  the  state. 

County  Revenues. 

a.  taxes. 

I.    The  general  property  tax. 
1.  Base — 
The    property   included    and    the    assessment   and 
equalization  are  the  same  for  county  taxes  as  for  state. 


730 


WEALTH,  DEBT,  AND  TAXATION. 


2.  Rate- 
County  taxes  are  levied  by  the  county  commis- 
sioners. 

The  rate  is  not  to  exceed  5  mills  in  counties  with  valuation  of  $1 ,000,000 
or  more.  The  amount  of  the  tax  is  not  to  exceed  $5,000  in  other  coun- 
ties, nor  the  rate,  1  per  cent. 

3.  Collection — 
Same  as  for  state  taxes. 

II  and  III.  Poll  tax  and  inheritance  tax. 

There  are  no  county  poll  or  inheritance  taxes. 

IV.  Corporation  taxes. 

One-half  the  state  tax  on  the  product  of  mines  is 
credited  to  the  county  in  which  the  mines  are  located. 

V.  Business  taxes  and  licenses. 

Liquors,  license  for  sale,  $25  to  $100  per  annum;  ferries,  $5  to  $200 
per  annum;  employment  bureau,  $100  per  annum;  peddlers  (hawk- 
ers), $30  per  annum;  auctioneers,  $10  per  annum. 

Municipal  Revenues. 

a.    TAXES. 

I.    The  general  property  tax. 

1.  Base — 

The  property  included  and  the  assessment  and  equal- 
ization are,  in  general,  the  same  for  municipal  taxes 
as  for  state;  but  municipalities  may  have  their  own 
assessment. 

2.  Rate— 

For  township  purposes  the  rate  is  limited  to  2  mills  on  valuation  of 
$100,000  or  more,  and  the  amount  in  other  townships  is  not  to  exceed 
$150  nor  the  rate  one-half  of  1  per  cent.  For  road  and  bridge  purposes 
the  limit  is  5  mills;  for  poor  purposes,  2  mills;  for  school  districts,  9 
mills,  or  for  the  erection  of  a  school  house  1  oer  cent;  and  for  public 
libraries,  2  mills. 

Cities  are  limited  to  1  per  cent  for  general  purposes:  but  the  common 
council  may  also  levy  a  ward  tax  of  1  per  cent  for  local  improvements. 

3.  Collection — 

Same  as  for  county  taxes. 


II.  Poll  tax. 

A  poll  tax  of  $2  may  be  levied  upon  every  qualified 
voter  in  the  city.  This  is  collected  by  the  street  com- 
missioner, and  may  be  paid  in  labor. 

Road  districts  may  also  levy  a  poll  tax. 

Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There  are  no  municipal  inheritance  or  corporation 
taxes. 

V.  Business  taxes  and  licenses. 

The  common  councils  of  cities  have  power  to  license  amusements, 
shows,  billiard  tables,  bowling  alleys,  auctioneers,  taverns,  the  sale  of 
liquors, butcher  shops,  pawnbrokers, etc.;  employment  bureaus,  $100  per 
annum.  Fire  department  tax — towns,  cities,  and  villages,  or  other  mu- 
nicipal corporations  with  organized  fire  departments,  receive  one-half 
the  tax  paid  by  fire  insurance  companies  upon  premiums  collected 
therein.  Retail  of  merchandise  for  limited  period — this  license  not  to 
exceed  $50  per  week  (graded  according  to  kind,  amount,  and  value  of 
goods).  Liquor  licenses — cities  of  10,000  or  more,  $1,000  per  annum; 
cities  less  than  10,000,  $500  to  $1,000  per  annum. 

School  Revenues. 

There  is  levied  annually  upon  the  taxable  property 
of  the  state  a  tax  of  1.15  mills,  known  as  the  "state 
school  tax,"  of  which  1  mill  is  added  to  the  general 
school  fund,  making,  together  with  sundry  fees  and 
fines,  the  "current  school  fund,"  and  fifteen  one-hun- 
dredths  of  1  mill  goes  to  the  University  of  Minnesota. 

The  state's  current  school  funds  are  apportioned 
among  the  several  counties,  according  to  the  number 
of  scholars,  and  thence  to  the  school  districts.  Liquor 
licenses  and  fines  are  also  so  apportioned  by  the  county. 

The  county  commissioners  also  levy  an  annual  tax 
of  1  mill,  known  as  the  "local  mill  tax." 

In  school  districts  of  over  50,000  inhabitants  the 
total  levy  may  not  exceed  8  mills  on  the  dollar. 

The  school  fund  also  receives  sundry  fees  and  fines. 


MISSISSIPPI.1 


The  revenue  system  of  Mississippi  is  distinguished  by 
an  elaborate  system  of  privilege  taxes  for  state  revenue. 
There  are  the  general  property  and  poll  taxes,  but  no  in- 
heritance tax  or  special  corporation  taxes  except  as 
included  in  the  privilege  taxes. 

Telegraph,  express,  sleeping  car,  and  insurance  privi- 
leges are  taxable  only  by  the  state,  but  counties  and 
municipalities  may  also  lay  taxes  on  other  privileges 
up  to  50  per  cent  of  the  state  tax. 

CONSTITUTIONAL    PROVISIONS. 

Sec.  112.  Taxation  shall  be  uniform  and  equal  throughout  the  state. 
Property  shall  be  taxed  in  proportion  to  its  value.  The  legislature  may, 
however,  impose  a  per  capita  tax  upon  such  domestic  animals  as  from 

'This  compilation  is  derived  mainly  from  the  following  sources: 
The  Annotated  Code  of  the  General  Statute  Laws  of  Mississippi, 

adopted  by  the  legislature  in  1892.     Marshall  &  Bruce,  Nashville.  Tenn., 

1892. 
The  Laws  of  Mississippi,  at  the  sessions  of  1894, 1896, 1898, 1900, 1902. 


their  nature  and  habits  are  destructive  of  other  property.  Property 
shall  be  assessed  for  taxes  under  general  laws,  and  by  uniform  rules,  ac- 
cording to  its  true  value.  But  the  legislature  may  provide  for  a  special 
mode  of  valuation  and  assessment  for  railroads,  and  railroad  and  other 
corporate  property,  or  for  particular  species  of  property  belonging  to 
persons,  corporations,  or  associations  not  situated  wholly  in  one  county. 
But  all  such  property  shall  be  assessed  at  its  true  value,  and  no  county 
shall  be  denied  the  right  to  levy  county  and  special  taxes  upon  such 
assessment  as  in  other  cases  of  property  situated  and  assessed  in  the 
county. 

Sec.  50.  Provision  shall  be  made  by  general  laws  to  prevent  the  abuse 
of  cities,  towns,  and  other  municipal  corporations  of  their  powers  of 
assessment,  taxation,  borrowing  money,  and  contracting  debts. 

Sec.  90.  The  legislature  shall  not  pass  local,  private,  or  special 
laws  in  any  of  the  following  cases,  but  provision  is  to  be  by  general 
laws     *     *     *     . 

(6)  Exemption  of  property  from  taxation  or  from  levy  or  sale. 

Sec.  181.  The  property  of  all  private  corporations  for  pecuniary  gain 
shall  be  taxed  in  the  same  way  and  to  the  same  extent  as  the  property 
of  individuals,  but  the  legislature  may  provide  for  the  taxation  of  banks 
and  banking  capital,  by  taxing  the  shares  according  to  the  value  thereof 


TAXATION  AND  REVENUE  SYSTEMS— MISSISSIPPI. 


731 


(augmented  by  the  accumulations,  surplus,  and  unpaid  dividends), 
exclusive  of  real  estate,  which  shall  be  taxed  as  other  real  estate.  Ex- 
emptions from  taxation  to  which  corporations  are  legally  entitled  at  the 
adoption  of  this  constitution  shall  remain  in  full  force  and  effect  for  the 
time  of  such  exemptions  as  expressed  in  their  respective  charters,  or  by 
general  laws,  unless  sooner  repealed  by  the  legislature.  And  domestic 
insurance  companies  shall  not  be  required  to  pay  a  greater  tax  in  the 
aggregate  than  is  required  to  be  paid  by  foreign  insurance  companies 
doing  business  in  this  state,  except  to  the  extent  of  the  excess  of  their 
ad  valorem  tax  over  the  privilege  tax  imposed  upon  such  foreign  com- 
panies; and  the  legislature  may  impose  pri\  ilege  taxes  on  building  and 
loan  associations  in  lieu  of  all  other  taxes  except  on  their  real  estate. 

Sec.  182.  (The  legislature  is  authorized  to  grant  exemptions  from 
taxation  in  the  encouragement  of  manufactures  and  other  new  enter- 
prises of  public  utility  for  a  period  of  five  years,  by  general  laws.) 

Sec.  192.  (Cities  and  towns  may  by  general  laws  be  authorized  to  en- 
courage the  establishment  of  manufactories,  gas  works,  waterworks,  and 
enterprises  of  public  utility  other  than  railroads,  within  the  limits  of  the 
cities  or  towns,  by  exempting  their  property  from  municipal  taxation  for 
periods  not  longer  than  ten  years.) 

Secs.  228  to  239.  (The  alluvial  land  of  the  state  is  divided  into  two 
levee  districts.  The  legislature  may  impose  for  levee  purposes,  in  addi- 
tion to  other  levee  taxes  authorized  by  law,  a  uniform  tax  of  two  to  five 
cents  per  acre  per  annum  upon  land  embraced  in  the  districts.  The 
legislature  may  provide  such  system  of  taxation  as  it  deems  proper  for 

the  levee  districts.) 

«  / 

Sec.  243.  A  uniform  poll  tax  of  two  dollars  to  be  used  in  aid  of  the 
common  schools,  and  for  no  other  purpose,  is  hereby  imposed  on  every 
male  inhabitant  of  this  state  between  the  ages  of  twenty-one  and  sixty 
years,  except  persons  who  are  deaf  and  dumb  or  blind,  or  who  are 
maimed  by  loss  of  hand  or  foot,  said  tax  to  be  a  lien  only  upon  taxable 
property.  The  board  of  supervisors  of  any  county  may,  for  the  purpose 
of  aiding  the  common  schools  in  that  county,  increase  the  poll  tax  in 
said  county,  but  in  no  case  shall  the  entire  poll  tax  exceed  in  any  one 
year  three  dollars  on  each  poll.  No  criminal  proceedings  shall  be 
allowed  to  enforce  the  collection  of  the  poll  tax. 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  County  assessors,  elected  for  four  years. 

(2)  County  collector — the  sheriff  is  ex  officio  tax  collector — elected  for 
four  years. 

(3)  County  board  of  equalization,  composed  of  the  board  of  super- 
visors of  the  county. 

(4)  Railroad  commissioners,  elected  for  four  years,  who  act  as  state 
railroad  assessors. 

(5)  State  revenue  agent,  elected  for  four  years. 

State  Revenues. 

a.    TAXES. 

I.  The  general  property  tax. 
1.  Base — 
a.   The  property  included  and  exempt. — All  property, 
except  that  specially  exempted  by  law,  is  subject  to 
taxation. 

(1)  and  (2)  There  is  no  definition  of  what  is  included  under  the  terms 
"real"  and  "personal"  property  for  purposes  of  taxation. 

(3)  Exemptions,  in  addition  to  public  property,  are:  Cemeteries; 
property  of  religious,  charitable,  or  educational  institutions;  hospitals; 
wearing  apparel  of  every  person,  not  including  jewelry  or  watches;  pro- 
visions for  family  consumption;  farm  products;  guns,  one  for  each 
owner;  poultry;  household  furniture  up  to  $250;  2  cows  and  calves,  10 


head  of  sheep  and  goats,  10  head  of  hogs,  and  colts  under  3  years  old; 
fanning  implements;  property  of  agricultural  and  mechanical  associa- 
tions and  fairs;  libraries  of  all  persons  and  works  of  art;  tools  of  me- 
chanics ;  and  factories  for  the  first  ten  years. 

b.  Assessment. — There  is  one  assessment  roll  for 
state,  county,  and  municipal  purposes.  The  taxpayer 
is  required  to  furnish  the  assessor  with  a  sworn  list  of 
the  items  and  their  value  of  all  his  taxable  personal 
property  as  of  February  1.  Lands  are  assessed  be- 
tween February  1  and  June  1  on  every  fourth  year 
(1902-1906).  Property  is  valued  at  the  price  it  would 
bring  at  a  voluntary  sale,  but  the  valuation  given  by 
the  owner  may  be  upon  the  report  of  the  assessor,  cor- 
rected by  the  board  of  supervisors,  who  also  change  the 
value  of  the  real  estate  on  account  of  improvements,  or 
in  case  of  loss. 

Railroads  are  taxed  for  state  and  local  purposes  upon  the  value  of 
their  general  property,  and  an  additional  state  tax  in  the  nature  of  a 
privilege  tax  is  levied.  The  assessment  is  made  by  the  state  railroad 
assessors  upon  the  basis  of  schedules  furnished  by  the  company,  consid- 
ering the  value  of  the  franchise  and  the  capital  stock  engaged  in  business 
in  the  state.  The  valuation  is  apportioned  to  the  counties  and  munici- 
palities. 

Shares  of  bank  stock,  state  or  national,  are  assessed  to  the  share- 
holders upon  a  statement  by  the  bank  officers  of  the  value  of  the  shares 
augmented  by  accumulations,  surplus,  and  unpaid  dividends,  and 
exclusive  of  the  real  estate  of  the  bank.  The  taxes  thereon  are  to  be 
paid  by  the  bank  to  the  county  collector  at  the  state  and  county  rate. 
Real  estate  of  the  bank  is  taxed  as  other  real  estate. 

Telegraph,  telephone,  express,  sleeping  car,  palace  car,  and  dining  car 
companies  are  to  be  assessed  for  ad  valorem  taxation  in  the  same  manner 
as  railroads  by  the  railroad  commissioners. 

Transient  vendors  and  traders  are  required  to  make  statements  of  the 
amount  of  sales,  and  ad  valorem  taxes  are  assessed  thereon  in  addition  to 
any  privilege  tax. 

c.  Equalization. — The  board  of  supervisors  of  each 
county  examines  the  assessment  rolls  and  equalizes  the 
assessment  between  individuals. 

There  is  no  state  board  of  equalization. 

2.  Rate— 

The  state  tax  for  1902  was  fixed  at  6  mills  on  the  dollar. 

3.  Collection — 

Taxes  for  state  and  county  are  collected  by  the  sher- 
iff, who  is  ex  officio  collector  for  the  county.  It  is  the 
duty  of  every  person  assessed  to  pay  taxes  on  or  before 
December  15,  all  taxes  delinquent  at  that  date  are  to 
be  collected  immediately  by  distress  and  sale.  After 
January  15  the  tax  collector  may  advertise  the  sale  of 
land  for  taxes  on  the  first  Monday  in  March.  Taxes 
are  a  lien  from  February  1  of  the  assessment  year. 
Persons  having  taxable  property  in  counties  in  which 
they  do  not  reside  may  pay  the  state  auditor. 
II.  Poll  tax. 

A  state  poll  tax  of  $2  is  levied  upon  every  male 
inhabitant  over  21  and  under  60  years  of  age  who  is 
not  deaf,  dumb,  blind,  or  maimed.  The  amount  so 
collected  is  a  credit  to  the  county  or  separate  school 
district  in  the  apportionment  of  the  state  school  fund, 
and  appears  in  county  and  not  State  revenue  receipts. 


732 


WEALTH,  DEBT  AND  TAXATION. 


III.  Inheritance  tax. 

There  is  no  inheritance  tax. 

IV.  Corporation  taxes. 

Corporations  pay  an  ad  valorem-tax  on  their  lands, 
which  is  assessed  like  that  of  individuals.  The  corpo- 
ration is  also  assessed  on  its  corporate  stock  at  its  market 
value,  an  allowance  being  made  for  lands  taxed,  except 
in  the  case  of  banks  and  railroads.  Certain  corpora- 
tions are  also  taxed  under  the  license  or  privilege  tax. 

Life  insurance  companies  are  required  to  pay  a  tax  of  2  per  cent  upon 
the  gross  amount  of  their  initial  or  first  year  premium  receipts  in  the 
state,  and  one-tenth  of  1  per  cent  upon  renewal  premiums  on  business 
hereafter  written;  and  all  other  life  insurance  companies  pay  a  tax  of  2 
per  cent  on  gross  less  return  premiums,  provided  that  domestic  insurance 
companies  that  pay  an  ad  valorem  tax  to  the  state  shall  not  be  subject 
to  the  tax  thus  imposed  upon  premiums.  In  addition  to  the  foregoing, 
a  tax  of  one-fifth  of  1  per  cent  is  collected  on  the  gross  receipts  of  for- 
eign insurance  companies,  to  pay  the  expenses  of  insurance  commissioner 
in  the  performance  of  his  duties. 

V.  Business  taxes  and  licenses. 

Privilege  taxes,  which  are  annual  except  where 
otherwise  specified,  are  levied  upon  the  following: 

Barber  shops,  per  chair,  $2.50;  billiard  tables,  etc. — cities  under  2,000 
inhabitants,  $25;  cities  2,000  to  5,000,  $50;  cities  over  5,000,  $75.  Bot- 
tling works — towns  under  2,000  inhabitants,  $5;  towns  2,000  to  3,000, 
$10;  towns  over  3,000,  $25.  Cigarette  dealers,  $5;  circuses — cities  over 
3,500  inhabitants,  $150;  cities  less  than  3,500,  $50.  Coal  dealers- 
cities  of  5,000  inhabitants,  $30;  cities  1,000  to  5,000,  $12.50.  Hack 
lines,  $25;  transient  horse  traders  selling  stock  not  raised  in  state — 
entire  state,  $50;  each  county,  $10.  Accident  insurance  companies, 
$250;  fire  insurance  adjusters,  $25  (no  city,  town,  village,  or  county  is 
to  levy  any  further  tax);  exhibition  of  trained  animals,  per  day,  $25; 
auctioneers — not  in  towns,  $5;  towns  1,000  to  3,000  inhabitants,  $20; 
towns  3,000  to  5,000,  $25;  towns  over  5,000,  $30.  Billposters,  in  cities 
or  towns  of  2,000  or  more,  $5;  boats — wharf  boats,  $100;  trading  boats, 
$200;  trading  boats  (provisions  and  provender),  $50.  Brokers — towns 
less  than  3,000  inhabitants,  $25;  towns 3,000  to  5,000,  $50;  towns  over 
5,000,  $75.  Building  and  loan  associations — those  in  which  stock  repre- 
sents monthly  payments  not  exceeding  $500,  $25;  $500  to $1,000,  $50; 
$1,000  to  $2,000,  $100;  $2,000  to  $3,000,  $150;  over  $3,000,  $200; 
foreign  associations,  $3,000,  $250  (in  lieu  of  all  taxes  except  on  real  es- 
tate). Bicycles,  hiring — towns  2,500  inhabitants,  $10;  towns  less  than 
2,500,  $5.  Cane  racks,  $50 ;  street  car  companies,  $25 ;  commercial  agen- 
cies, $50;  canning  factories,  $10;  steam  laundries,  $10;  money  lenders, 
$100;  oil  depots — towns  2,500  inhabitants  or  less,  $25;  towns  2,500  to 
10,000,  $50;  towns  10,000  or  over,  $75.  Round  bale  cotton  press— 1 ,000 
bales,  $15;  1,000  to  2,000,  $20;  2,000  to  4,000,  $30.  Land  timber  mills— 
500acres,$25;  1,000  acres, $.50  ($25 per  500 acres).  Cotton  brokers,  $25; 
cotton  factors  and  buyers,  $25;  cotton  compress  company,  $50;  capacity 
20,000  to  30,000  bales,  $100;  over  30,000  bales,$150.  Cotton  weigher- 
less  than  2,000  bales  peryear, $10;  2,000  to4,000,$15;  4,000to  5,000, $20; 
5,000  to  8,000,  $25 ;  8,000  to  10,000,  $30 ;  over  10,000,  $35.  Cottonseed-oil 
mills— capital  $30,000  to  $75,000,$175;  capital  $75,000  to$100,000,$200; 
capital  over$100,000,  $250.  Dentists,  $10 ;  electric  light  companies,  $25; 
cities  5,000  to  10,000  inhabitants,  $50;  cities  over  10,000,  $75.  Exhi- 
bitions, per  day,  $5;  express  companies,  $500  (also  $1  per  mile  of  track 
over  which  business  is  operated);  feather  renovators,  $50;  fertilizing 
companies,  $25;  capital  $10,000  to  $20,000,  $50;  capital  $20,000  to 
$30,000,  $75;  capital  over  $30,000,  $100.  Ferries  (other  than  steam)— 
income  $300  to  $600,  $5;  income  over  $600,  $10.  Steam  ferry  on  Mis- 
sissippi near  city  of  5,000  inhabitants,  $150;  near  city  of  less  than  5,000, 
$75.  Fire  insurance  companies,  $1 ,000  (companies  domiciled  in  the  state 
are  only  required  to  pay  an  amount  which  added  to  the  ad  valorem  tax 
on  their  assets  will  make  $1,000;  no  additional  tax  is  to  be  imposed  by 


counties  or  municipalities);  disabled  Confederate  soldiers  are  exempt 
from  privilege  tax  except  as  to  liquors,  cigarettes,  and  amusement  con- 
trivances; gas  companies,  $30,  towns  of  2,500  to  4,000  inhabitants,  $50; 
towns  over  4,000,  $100.  Gypsies,  $.50;  gins,  $25;  guarantee  companies, 
$100  (no  additional  tax  to  be  imposed  by  cities  or  towns);  hopfen  weis, 
cider,  etc.,  dealers,  $500.  Hotels— capacity  25  guests,  in  towns  of  over 
5,000  inhabitants,  $75;  capacity  less  than  25  guests,  in  towns  of  over 
5,000,  $40;  capacity  25  guests,  in  towns  of  2,000  to  5,000,  $40;  capacity- 
less  than  25  guests,  in  towns  of  2,000  to  5,000,  $20;  capacity  25  guests, 
outside  towns,$10;  capacity  25  to  75  guests, outside  towns,  $25;  capacity 
over  75  guests,  outside  towns,  $50.  Ice  factories — capacity  5  tons  per  day, 
$25;  capacity  10  tons  perday,$35;  capacity  10  to  15  tons  per  day, $50;  ca- 
pacity 15  to  25  tons  per  day,  $75;  capacity  over  25  tons  per  day,  $100. 
Life  insurance  companies — companies  doing  business  March  17,  1900, 
$1,000;  coming  to  state  after  March  17, 1900 — business  first  year,  $250; 
second  year,  $500;  third  year,  $750;  thereafter,  $1,000.  Light- 
ning rod  agents,  $100;  liquor  dealers — 1  to  5  gallons,  $400;  5  gal- 
lons or  more,  $200.  Insurance  agents — cities  5,000  inhabitants  or 
more,  $40;  2,000  to  5,000,  $25;  2,000  or  less,  $20;  other  agents,  $10. 
Junk  dealers— cities  10,000  inhabitants  and  over,  $50;  5,000  to  10,000, 
$25;  others,  $15.  Lawyers,  $10;  livery  stables — towns  under  2,000  in- 
habitants, $10;  2,000  to  3,000,  $15;  3,000  to  5,000,  $30;  5,000  to  10,000, 
$40;  over  10,000,  $60;  on  each  owner  of  stable,  $10.  Lumber  yard,  sales 
100,000  feet  or  more,  $10;  lunch  house  stands — railroad,  $15;  others,  $5. 
Meat  markets — cities  of  5,000  inhabitants,  $15;  cities  of  less  than  5,000, 
$10.  Hacksand  omnibuses — cities2,000inhabitantsormore,each  hack, 
$5;  2,000  or  less,  $2.50.  Patent  medicine  vendors,  $100;  transient  vendors, 
in  each  county ,  $35.  Sawmills — capacity  5,000  to  25,000  feet  per  day  ,$15; 
capacity  25,000  to  50,000  feet  per  day,  $25;  capacity  50,000  to  75,000 
feet  per  day,  $50;  capacity  over  75,000  feet  per  day,  $100.  Stave  and 
spoke  factories,  $10 ;  fortunetellers,  in  each  county,  $50;  merry-go-round, 
etc.,  peryear,$10;  oleomargarine  dealers,  $5;  omnibus,  dray,  or  wagon, 
each,  $5;  pawnbroker,  $100.  Photograph  galleries,  $5,  cities  over  2,000 
inhabitants,  $10;  railroad  cars,  $50;  other  traveling  photographers,  $20; 
per  county,  $10.  Pistol  cartridges,  dealers,  $5 ;  piano  and  organ  agents, 
$20;  railroad  eating  houses — trunk  lines,  $125;  when  one  train  only,  $50; 
other  lines  with  two  trains,  $30;  other  lines  with  one  train,  $15.  Restau- 
rants— citiesover  5,000  inhabitants,  $30;  cities  1 ,000  to  5,000,  $20 ;  others, 
$5.  Real  estate  agents,  $10;  scalpers,  $25;  sewing  machine  agency,  $.50; 
sewing  machine  agents,  $10;  shooting  galleries — cities  4,000  or  more, 
$20;  cities  2,000  to  4,000,  $15;  cities  1,000  to  2,000,  $10;  towns  less  than 
1,000,  $5.  Shows  in  general,  per  day,  $25;  side  shows,  per  day,  $20. 
Skating  rinks — cities  over  3,000  inhabitants,  $20;  cities  under  3,000, 
$10.  Sleeping  car  and  palace  car  companies,  $200,  also  25  cents  per 
mile  of  track  over  which  the  company  runs  its  cars.  Soda  fountain — 
towns  of  over  2,000  inhabitants,  $10;  towns  under  2,000,  $5;  selling 
soda,  not  from  fountains,  $2.50.  Enlarging  pictures,  $5;  stallions,  jacks, 
$5;  stores— stock  under  $300,  $2.50;  stock  $300  to  $1,000,  $5;  stock 
$1,000  to  $2,000,  $10;  stock  $2,000  to $3,500,  $15;  stock  $3,500  to  $5,000, 
$20;  stock  $5,000  to  $7,500,  $25;  stock  $7,500  to  $10,000,  $30;  stock 
$10,000  to  $12,000,  $35;  stock  $12,000  to  $15,000,  $40;  stock  $15,000 
to  $20,000,  $50;  stock  $20,000  to  $25,000,  $60;  stock  $25,000  to 
$35,000,  $85;  stock  $35,000  to  $50,000,  $100;  stock  $50,000  to  $75,000, 
$150;  stock  $75,000  to  $100,000,  $175;  stock  $100,000  to  $2,50,000, 
$200:  stock  $250,000  and  over,  $250.  Secondhand  clothing,  $500; 
telephone  exchanges — 20  subscribers,  $2.50;  20  to  35  subscribers, 
$7.50;  50  to  75  subscribers,  $12.50;  75  to  100  subscribers,  $17.50;  100 
to  150  subscribers,  $37.50;  150  subscribers  and  over,  $50.  Longdis- 
tance company,  1,000  miles  or  more,  $1,  less  than  1,000  miles,  per  mile, 
10  cents  (municipalities  not  to  tax) ;  bed  spring  vendors,  transient,  $15; 
washing  machines,  per  county,  $15;  cottonseed  buyers,  $10;  debenture 
companies,  $100;  peddlers — on  foot,  in  each  county,  $10;  one  horse  and 
wagon,  in  each  county,  $15;  two  horses  and  wagon,  in  each  county,  $30. 
Peddlers  of  tinware  or  pottery — en  foot,  $50;  with  wagon,  $10.  Tran- 
sient vendors  of  merchandise,  in  each  county,  $25;  railroads — first  class, 
per  mile,  $20;  second  class,  per  mile,  $15;  third  class,  per  mile,  $10;  nar- 
row gauge,  per  mile,  $2;  railroads  claiming  exemption  from  supervision, 
$10.     Telegraph  "companies  operating  1,000  miles  of  line  or  more,  $250; 


TAXATION  AND  REVENUE  SYSTEMS— MISSISSIPPI. 


733 


telegraph  companies,  per  mile  of  line  less  than  1,000  miles,  25  cents. 
Trading  cars— traveling  250  miles,  $250;  150  to  250  miles,  $150;  less 
than  150  miles,  $100.  Theaters— cities  of  over  4,000  inhabitants,  per 
year,  $50;  cities  of  less  than  4,000,  per  year,  $25;  cities  of  1,000  to  2,000, 
per  year,  $10;  other  such  halls,  $5;  dance  halls,  $10.  Vendors  of 
spectacles,  $15;  undertakers  and  embalmers,  $20;  vendors  of  jewelry, 
transient,  per  county,  $50;  vendors  of  stoves,  ranges,  and  clocks, 
per  county,  $100;  on  wagons  used,  $25;  license  for  state,  $1,000. 
Transient  dealers  in  merchandise,  $50;  waterworks — cities  of  8,000 
inhabitants  or  more,  $150;  cities  of  3,000  to  8,000,  $50;  cities  of  3,000 
or  less,  $20.  Dealers  in  deadly  weapons,  $25;  warehouses — villages  of 
300  inhabitants  or  less,  $2.50:  villages  of  300  to  500,  $5;  villages  of  500 
to  1,000,  $10;  villages  of  1,000  to  2,000,  $15:  villages  of  over  2,000,  $20. 
Woodyards— cities  of  8,000  inhabitants,  $20:  5,000  to  8,000,  $10; 
under  5,000,  $5.  Mineral  water  bottlers,  $20;  liquors,  retail  license- 
towns  under  500  inhabitants,  $900;  every  city  or  town  over  500,  not  to 
exceed  $1,200.  Wholesale  malt  liquor— towns  5,000  or  more,  $100; 
2,000  to  5,000,  $50;  other  dealers,  $25.  Whiskey  distilleries, also  brandy 
and  other  intoxicants,  $50. 

Insurance,  telegraph,  express,  sleeping  car  com- 
panies, building  and  loan  associations,  and  commercial 
agencies  are  required  to  pay  for  their  privileges  to  the 
auditor  of  public  accounts  under  penalty  of  double  the 
tax.  Other  privileges  are  paid  to  the  county  collector. 
The  license  is  a  personal  privilege  and  does  not  exempt 
from  taxation  the  property  used  in  the  business. 

B.    FEES. 

Secretary  of  state. — Issuing  commissions  to  notaries,  $5;  charters  of 
corporations  not  for  profit,  $3:  charter  fee  on  corporations  for  profit — 
capital  stock  $10,000,  $20;  $10,000  to  $30,000,  $40;  $30,000  to  $50,000, 
$60;  $50,000  and  over,  one-tenth  of  1  per  cent  (no  fee  is  to  exceed  $250). 
Amendments  to  charters,  $5;  foreign  corporations,  charter,  $15;  filing 
articles  of  consolidation,  $25. 

County  Revenues. 

a.   TAXES. 

I.  The  general  property  tax. 

1.  Base — 

The  property  included  and  the  assessment  and  equali- 
zation thereof  are  the  same  for  county  taxes  as  for 
state. 

2.  Rate — 

Boards  of  supervisors  may  levy  taxes  for  all  pur- 
poses, which  added  to  the  state  tax  will  make  13  J 
mills  on  the  dollar,  but  counties  with  outstanding 
bonded  debt  may  levy  a  sinking  fund  tax,  and  also  a 
special  tax  not  exceeding  2  mills  may  be  levied  for 
roads  and  public  works,  but  the  total  is  not  to  exceed 
16  mills. 

3.  Collection — 
Same  as  for  state. 

II,  III,  and  IV.  Poll  tax,  inheritance  tax,  and  corpora- 
tion taxes. 

There  are  no  poll,  inheritance,  or  corporation  taxes. 

(See  State  revenues,  II.) 
V.  Business  taxes  and  licenses. 

Privileges  are  subject  to  taxation  by  the  board  of 
supervisors  to  an  amount  not  exceeding  50  per  cent  of 


the  state  tax,  but  no  county  or  municipal  tax  is  to  be 
levied  on  the  privilege  of  insurance  companies,  tele- 
graph, express,  or  sleeping  car  companies,  building  and 
loan  associations,  and  commercial  agencies  paying 
their  tax  direct  to  the  state. 

F.       SPECIAL    ASSESSMENTS. 

Swamp-land  districts. — The  board  of  supervisors  of 
the  county  may  levy  a  special  tax,  not  exceeding  50 
cents  per  acre  in  any  one  year,  on  overflowed  lands  for 
each  swamp-land  district. 

Municipal  Revenues. 

a.   TAXES. 

I.  The  general  property  tax. 

1.  Base — 

The  property  included  and  the  assessment  and 
equalization  thereof  are  the  same  for  municipal  taxa- 
tion as  for  state.  The  assessment  of  personal  prop- 
erty and  polls  is  entered  separately  on  the  rolls  for 
each  city,  town,  or  village,  or  for  each  election  district 
of  the  county.  Municipalities  may  exempt  certain 
manufactories  from  taxation  for  a  term  of  years. 

2.  Rate— 

The  levy  of  municipal  taxes  is  made  by  the  mayor 
and  board  of  aldermen.  The  limit  for  general  revenue 
and  improvements  is  12  mills  on  the  dollar;  in  villages 
of  300  inhabitants  this  limit  is  4  mills. 

3.  Collection — 

Same  as  for  state  and  county  taxes. 

II,  III,  and  IV.  Poll  tax,  inheritance  tax,  and  corpora- 
tion taxes. 

There  are  no  poll,  inheritance,  or  corporation  taxes. 
V.  Business  taxes  and  licenses. 

Privileges  are  subject  to  taxation  by  municipalities 
to  an  amount  not  exceeding  50  per  cent  of  the  state 
tax,  but  telegraph,  express,  and  sleeping  car  companies 
and  other  privileges  on  which  the  tax  is  paid  directly 
to  the  state  are  not  taxable  by  municipal  authority. 

Liquors,  retail  license. — Cities  and  towns  may  levy  a  license  tax, 
additional  to  the  state  tax  and  equal  to  25  per  cent  thereof,  for  mu- 
nicipal purposes. 

School  Revenues. 

The  state  school  funds  are  distributed  by  the  auditor 
of  public  accounts  to  the  counties  and  separate  school 
districts.  The  board  of  supervisors  of  the  county  may 
levy  a  tax  on  the  property  in  the  county,  and  an  addi- 
tional poll  tax  of  $1 ;  every  municipality  which  is  a 
separate  school  district  may  levy  like  taxes  for  the 
maintenance  of  schools.  The  state  poll  tax  is  collected 
by  the  counties  and  distributed  to  the  school  districts 
in  which  collected. 


734 


WEALTH,  DEBT,  AND  TAXATION. 


MISSOURI.1 


Missouri  draws  her  revenue  largely  from  the  gen- 
eral property  tax  for  state,  county,  and  municipal  pur- 
poses. This  is  supplemented  by  an  extensive  system 
of  business  taxes  and  licenses  and  a  collateral  inherit- 
ance tax.  There  are  no  special  corporation  taxes  ex- 
cept a  tax  on  the  premiums  of  foreign  insurance  com- 
panies and  a  special  tax  on  car  companies.  There  are, 
however,  a  number  of  important  fees  levied  on  insur- 
ance companies,  and  for  incorporation.  The  poll  tax 
is  left  to  the  counties  and  municipalities. 

CONSTITUTIONAL    PROVISIONS. 

ARTICLE    X. 

Sec.  1.  The  taxing  power  may  be  exercised  by  the  general  assembly 
for  state  purposes,  and  by  counties  and  other  municipal  corporations, 
under  authority  granted  to  them  by  the  general  assembly,  for  county 
and  other  corporate  purposes. 

Sec.  2.  The  power  to  tax  corporations  and  corporate  property  shall 
not  be  surrendered  or  suspended  by  act  of  the  general  assembly. 

Sec.  3.  Taxes  may  be  levied  and  collected  for  public  purposes  only. 
They  shall  be  uniform  upon  the  same  class  of  subjects  within  the  terri- 
torial limits  of  the  authority  levying  the  tax,  and  all  taxes  shall  be  levied 
and  collected  by  general  laws. 

Sec.  4.  All  property  subject  to  taxation  shall  be  taxed  in  proportion  to 
its  value. 

Sec.  5.  All  railroad  corporations  in  this  state,  or  doing  business 
therein,  shall  be  subject  to  taxation  for  state,  county,  school,  municipal 
and  other  purposes,  on  the  real  and  personal  property  owned  or  used  by 
them,  and  on  their  gross  earnings,  their  net  earnings,  their  franchises, 
and  their  capital  stock. 

Sec.  6.  The  property,  real  and  personal,  of  the  state,  counties  and 
other  municipal  corporations,  and  cemeteries,  shall  be  exempt  from  tax- 
ation. Lots  in  incorporated  cities  or  towns,  or  within  one  mile  of  the 
limits  of  any  such  city  or  town,  to  the  extent  of  one  acre,  and  lots  one 
mile  or  more  distant  from  such  cities  or  towns,  to  the  extent  of  five  acres, 
with  the  buildings  thereon,  may  be  exempted  from  taxation  when  the 
same  are  used  exclusively  for  religious  worship,  for  schools,  or  for  pur- 
poses purely  charitable ;  also  such  property,  real  and  personal,  as  maybe 
used  exclusively  for  agricultural  or  horticultural  societies :  Provided,  That 
such  exemptions  shall  be  only  by  general  law. 

Sec.  7.  All  laws  exempting  property  from  taxation,  other  than  the 
property  above  enumerated,  shall  be  void. 

Sec.  8.  The  state  tax  on  property,  exclusive  of  the  tax  necessary  to 
pay  the  bonded  debt  of  the  state,  shall  not  exceed  twenty  cents  on  the 
hundred  dollars  valuation;  and  whenever  the  taxable  property  of  the 
state  shall  amount  to  nine  hundred  million  dollars  the  rate  shall  not 
exceed  fifteen  cents. 

Sec.  9.  No  county,  city, town,  or  other  municipal  corporation,  nor  the 
inhabitants  thereof,  nor  the  property  therein,  shall  be  released  or  dis- 
charged from  their  or  its  proportionate  share  of  taxes  to  be  levied  for 
state  purposes,  nor  shall  commutation  for  such  taxes  be  authorized  in 
any  form  whatsoever. 

Sec.  10.  The  general  assembly  shall  not  impose  taxes  upon  counties, 
cities,  towns,  or  other  municipal  corporations  or  upon  the  inhabitants  or 
property  thereof ,  for  county,  city,  town,  or  other  municipal  purposes,  but 
may,  by  general  laws,  vest  in  the  corporate  authorities  thereof  the  power 
to  assess  and  collect  taxes  for  such  purposes. 

'This  compilation  is  derived  mainly  from  the  following  sources: 
The  General  Revenue  Laws  of  the  State  of  Missouri,  also  the  laws 

regulating  the  taxation  of  auctioneers,  etc.     Compiled  from  the  Revised 

Statutes  of  1899  and  laws  of  1901  and  1903,  by  Albert  O.  Allen,  state 

auditor,  Jefferson  City,  Mo.     State  Printers  (1903). 
A  Treatise  upon  the  Law  and  Practice  of  Taxation  in  Missouri.     By 

Frederick  N.  Judson.     Stephens,  publisher,  Columbia,  Mo.,  1900. 


Sec.  11.  Taxes  for  county,  city,  town,  and  school  purposes  may  be 
levied  on  all  subjects  and  objects  of  taxation;  but  the  valuation  therefor 
shall  not  exceed  the  valuation  of  the  same  property  in  such  town, city, or 
school  district  for  state  and  county  purposes.  For  county  purposes  the 
annual  rate  on  property,  in  counties  having  six  million  dollars  or  less, 
shall  not,  in  the  aggregate,  exceed  fifty  cents  on  the  hundred  dollars 
valuation;  in  counties  having  six  million  dollars  and  under  ten  million 
dollars,  said  rate  shall  not  exceed  forty  cents  on  the  hundred  dollars 
valuation;  in  counties  having  ten  million  dollars  and  under  thirty  mil- 
lion dollars,  said  rate  shall  not  exceed  fifty  cents  on  the  hundred  dollars 
valuation;  and  in  counties  having  thirty  million  dollars  or  more,  said 
rate  shall  not  exceed  thirty-five  cents  on  the  hundred  dollars  valuation. 
For  city  and  town  purposes  the  annual  rate  on  property  in  cities  and 
towns  having  thirty  thousand  inhabitants  or  more  shall  not,  in  the  aggre- 
gate, exceed  one  hundred  cents  on  the  hundred  dollars  valuation;  in 
cities  and  towns  having  less  than  thirty  thousand  and  over  ten  thousand 
inhabitants,  said  rate  shall  not  exceed  sixty  cents  on  the  hundred  dol- 
lars valuation;  in  cities  and  towns  having  less  than  ten  thousand  and 
more  than  one  thousand  inhabitants,  said  rate  shall  not  exceed  fifty 
cents  on  the  hundred  dollars  valuation ;  and  in  towns  having  one  thou- 
sand inhabitants  or  less,  said  rate  shall  not  exceed  twenty-five  cents  on 
the  hundred  dollars  valuation.  For  school  purposes  in  districts,  the 
annual  rate  on  property  shall  not  exceed  forty  cents  on  the  hundred  dol- 
lars valuation:  Provided,  The  aforesaid  annual  rates  for  school  purposes 
may  be  increased,  in  districts  formed  of  cities  and  towns,  to  an  amount 
not  to  exceed  one  dollar  on  the  hundred  dollars  valuation,  and  in  other 
districts  to  an  amount  not  to  exceed  sixty-five  cents  on  the  hundred  dol- 
lars valuation,  on  the  condition  that  a  majority  of  the  voters  who  are 
taxpayers,  voting  at  an  election  held  to  decide  the  question,  vote  for  said 
increase.  For  the  purpose  of  erecting  public  buildings  in  counties,  cities, 
or  school  districts,  the  rates  of  taxation  herein  limited  may  be  increased 
when  the  rate  of  such  increase  and  the  purpose  for  which  it  is  intended 
shall  have  been  submitted  to  a  vote  of  the  people,  and  two-thirds  of  the 
qup.lified  voters  of  such  county,  city,  or  school  district,  voting  at  such 
election,  shall  vote  therefor.  The  rate  herein  allowed  to  each  county 
shall  be  ascertained  by  the  amount  of  taxable  property  therein,  accord- 
ing to  the  last  assessment  for  state  and  county  purposes,  and  the  rate 
allowed  to  each  city  or  town  by  the  number  of  inhabitants,  according  to 
the  last  census  taken  under  the  authority  of  the  state,  or  of  the  United 
States;  said  restrictions  as  to  rates  shall  apply  to  taxes  of  every  kind 
and  description,  whether  general  or  special,  except  taxes  to  pay  valid 
indebtedness  now  existing,  or  bonds  which  may  be  issued  in  renewal  of 
such  indebtedness. 

Sec.  14.  (Provision  for  payment  of  state  debt,  $250,000  per  year.) 

Sec.  18.  There  shall  be  a  state  board  of  equalization,  consisting  of 
the  governor,  state  auditor,  state  treasurer,  secretary  of  state,  and 
attorney-general.  The  duty  of  said  board  shall  be  to  adjust  and 
equalize  the  valuation  of  real  and  personal  property  among  the  several 
counties  in  the  state,  and  it  shall  perform  such  other  duties  as  are  or 
may  be  prescribed  by  law. 

Sec.  21.  No  corporation,  company,  or  association,  other  than  those 
formed  for  benevolent,  religious,  scientific,  or  educational  purposes, 
shall  be  created  or  organized  under  the  laws  of  this  state,  unless  the 
persons  named  as  corporators  shall,  at  or  before  the  filing  of  the  arti- 
cles of  association  or  incorporation,  pay  into  the  state  treasury  fifty 
dollars  for  the  fifty  thousand  dollars  or  less  of  capital  stock  and  a  fur- 
ther sum  of  five  dollars  for  every  additional  ten  thousand  dollars  of 
its  capital  stock,  and  no  such  corporation,  company,  or  association 
shall  increase  its  capital  stock  without  first  paying  into  the  treasury 
five  dollars  for  every  ten  thousand  dollars  of  increase:  Provided,  That 
nothing  contained  in  this  section  shall  be  construed  to  prohibit  the 
general  assembly  from  levying  a  further  tax  on  the  franchises  of  such 
corporation. 

(Constitution  amended  November,  1900.) 


TAXATION  AND  REVENUE  SYSTEMS— MISSOURI. 


735 


ARTICLE    X. 

Sec.  22.  A  mortgage,  deed  of  trust,  contract,  or  other  obligation  by 
which  a  debt  is  secured  shall,  for  the  purposes  of  assessment,  be  deemed 
and  treated  as  an  interest  in  the  property  affected  thereby,  except  as 
to  railroad  and  other  quasi  public  corporations,  for  which  provision 
has  already  been  made  by  law.  In  case  of  debts  so  secured  the  value 
of  the  property  affected  by  such  mortgage,  deed  of  trust,  contract,  or 
obligation,  less  the  value  of  such  security,  shall  be  assessed  and  taxed 
to  the  owner  thereof  in  the  county  or  city  in  which  the  property  affected 
thereby  is  situate.  The  taxes  so  levied  shall  be  a  lien  upon  the  prop- 
erty and  security  and  may  be  paid  by  either  party  to  such  security. 
*  *  *  Every  contract  by  which  a  debtor  is  obligated  to  pay  any 
tax  on  money  loaned,  or  on  any  mortgage,  shall  be  null  and  void. 

Russell  v.  Croy,  164  Mo.,  69.  Plaintiffs  are  holders  of  notes  secured 
by  mortgages  on  lands.  Defendants  are  the  assessor  and  the  members 
of  the  county  court.  Object  of  the  suit  was  to  prevent  the  defendants 
from  enforcing  against  the  plaintiffs  the  terms  of  the  amendment. 
(Art.X,  sees.  22,  23.) 

Held,  that  the  amendment  violates  the  fourteenth  amendment  to 
the  Constitution  of  the  United  States  and  is  therefore  void.  It  denies 
the  "equal  protection  of  the  laws''  in  exempting  the  holders  of  ''rail- 
road and  other  quasi  public  corporation"  securities,  while  all  others 
are  included.  (Citing  Field,  J.,  in  Santa  Clara  v.  Southern  Pacific 
Railway  Co.  (C.  C),  18  Fed.,  385.)  This  is  arbitrary  discrimination 
and  not  reasonable  classification.  If  the  discriminating  clause  could 
be  limited  to  property  used  by  a  railroad  company  in  its  equipment 
as  a  common  carrier,  it  might  be  a  just  classification. 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation  are : 
In  counties  having  township  organization: 

(1)  Township  assessor;  township  clerk,  elected  biennially,  is  ex 
officio  assessor. 

(2)  Township  collector,  elected  biennially. 
In  cities: 

(3)  Board  of  assessors  in  cities  of  the  first  class,  consisting  of  a  presi- 
dent elected  by  the  qualified  voters  of  the  city,  and  one  assessor  from 
each  assessment  district,  appointed  by  the  mayor.  The  city  board  of 
equalization  consists  of  the  president  of  the  board  of  assessors  and  four 
discreet  real  estate  owners  of  ten  years'  residence  appointed  by  the 
judge  of  the  circuit  court. 

(4)  City  collector  in  cities  of  the  first  class,  elected  for  four  years. 

(5)  City  assessor  in  cities  of  the  second  class,  appointed  by  the 
mayor  for  two  years. 

(6)  City  treasurer  in  cities  of  the  second  class,  who  acts  ex  officio 
as  collector. 

(7)  Assessors  in  cities  of  the  third  and  fourth  classes,  elected  for  two 
years. 

(8)  Collectors  in  cities  of  the  third  and  fourth  classes,  elected  for  two 
years. 

In  the  counties  generally: 

(9)  County  assessor,  elected  for  a  term  of  four  years.  No  person  is 
to  hold  the  office  two  successive  terms. 

(10)  Collector  of  the  revenue,  elected  for  two  years. 

(11)  County  board  of  equalization,  composed  of  the  county  clerk, 
the  judges  of  the  county  court,  and  the  county  assessor.  In  counties 
having  township  organization  the  sheriff  is  a  member. 

(12)  State  board  of  equalization,  consisting  of  the  governor,  state 
auditor,  treasurer,  secretary  of  state,  and  attorney-general. 

(Note.) — "  County  "  includes  St.  Louis.  All  services  required  of 
county  officers  are  to  be  performed  by  the  corresponding  officers  of  the 
city  of  St.  Louis. 

(13)  License  collector,  in  cities  having  300,000  inhabitants  or  more, 
elected  every  four  years,  collects  all  license  taxes  required  by  law  or 
ordinance,  excepting  the  dramshop  and  wharfage  licenses,  and  also  the 
tax  on  telegraph  and  telephone  poles,  the  dog  tax,  the  merchant  ad 
valorem  tax,  the  vehicle  license  tax,  and  the  special  tax  on  foreign 
insurance  companies. 


(14)  State  tax  commission,  three  persons  appointed  by  the  governor. 

Assessors  are  compensated  by  commissions  based  on  the  number  of 
names  on  the  rolls — 25  cents  each  for  the  first  1,000,  20  cents  each  for 
the  second  1,000,  and  15  cents  each  for  all  over  2,000.  In  cities  the 
compensation  may  be  fixed  by  ordinance. 

State  Revenues. 

a.   TAXES. 

I.    The  general  property  tax. 
1.  Base — 

a.  The  property  included  and  exempt. — All  property, 
real  and  personal,  is  subject  to  taxation  except  as 
specially  exempted. 

(1)  "Real  property"  includes  not  only  the  land  itself,  but  also  the 
buildings,  structures,  and  improvements  thereon,  all  mills,  factories,  and 
machinery  connected  therewith,  and  all  rights  and  privileges  appertain- 
ing thereto. 

(2)  "Personal  property"  includes  bonds,  stocks,  moneys,  credits, 
capital  stock,  and  every  tangible  thing  subject  to  ownership  not  part  or 
parcel  of  real  property. 

(3)  Exemptions,  in  addition  to  public  property,  are:  Property  used 
for  religious  purposes,  including  churches  and  parsonages;  schools  and 
institutions  of  charity;  property  of  agricultural  and  horticultural  socie- 
ties. (See  constitution,  Art.  X,  sec.  6.)  There  is  also  certain  property 
exempted  by  legislative  contract  prior  to  the  adoption  of  the  present  con- 
stitution. 

b.  Assessment. — In  general,  there  is  one  assessment 
roll  made  up  by  the  assessors  of  the  counties,  towns, 
and  districts,  but  certain  property  is  assessed  by  the 
state  board  of  equalization.  Every  person  is  required 
to  make  a  statement  under  oath  of  all  his  real  and  per- 
sonal property,  with  the  value  thereof  as  of  the  1st  of 
June  in  each  year.  Penalty  for  refusing  to  take  the 
oath  is  a  fine  of  $10  to  $1,000.  The  assessor  is  to  assess 
all  property  at  its  true  value  in  money  or  the  cash 
price  at  the  time  of  listing,  but  if  a  person  fails  to  make 
his  statement,  the  assessor  is  to  list  the  property  at 
double  its  value,  or  at  treble  the  value  in  case  of  a 
fraudulent  list. 

Mortgages  on  real  estate  are  assessed  as  personal  property,  and  the 
mortgagee  is  required  to  give  them  in  for  taxation,  while  the  land  is  also 
taxed  on  its  assessed  value  without  deducting  the  value  of  the  mort- 
gage. 

The  amendment  of  November,  1900,  attempted  to  prevent  this  appar- 
ent double  taxation  on  the  value  of  the  property  by  copying  from  the 
constitution  of  California  a  provision  that  "  mortgages  and  deeds  of  trust 
are  to  be  deemed  an  interest  in  the  property  affected  thereby,  except  as 
to  railroads  and  other  quasi  public  corporations  for  which  provision  has 
already  been  made  by  law,  and  that  only  the  value  of  the  property,  less 
the  value  of  the  security,  is  to  be  assessed  to  the  owner  of  the  property." 
This  was  declared  unconstitutional  by  the  supreme  court  in  June,  1901. 

Shares  of  stock  in  banks  and  insurance  companies  are  assessed  at  their 
true  value  in  money, less  the  value  of  the  real  estate  represented  by  them, 
together  with  all  reserved  funds,  undivided  profits,  premiums,  and  earn- 
ings. Insurance  companies  doing  business  on  the  mutual  plan  without 
capital  stock  are  to  make  return  of  the  net  value  of  all  assets.  The 
taxes  assessed  on  the  shares  of  stock  or  net  assets  are  to  be  paid  by  the 
corporation  and  may  be  recovered  by  it  from  the  shareholders. 

Railroad  property  is  assessed  by  the  state  board  of  equalization, 
including  such  proportion  of  the  total  value  of  the  rolling  stock  as  the 
number  of  miles  in  the  state  bears  to  the  total  length  of  the  road.  The 
unit  rule  thus  applies  to  rolling  stock  only.     The  county  courts  of  the 


736 


WEALTH,  DEBT,  AND  TAXATION. 


several  counties  are  to  examine  the  statements  made  by  the  railroads 
and  make  corrections  before  submission  to  the  state  board. 

Car  companies  of  all  kinds  are  assessed  by  the  state  board  on  the  aver- 
age value  of  cars  in  use  in  the  state. 

The  entire  property,  real  and  personal,  of  street  car  companies  is 
assessed  by  the  state  board  on  the  basis  of  returns  to  the  state  auditor  in 
the  manner  that  railroad  property  is  assessed. 

The  state  board  of  equalization  apportions  its  assessment  to  each 
county,  municipal  township,  city,  or  incorporated  town  in  which  the 
road  is  located,  according  to  mileage. 

"Local"  property  of  railroad  companies  not  used  in  operation  of  the 
road,  including  lands,  machine  and  workshops,  roundhouses,  ware- 
houses, and  other  buildings  is  to  be  assessed  by  the  assessors  of  the  sev- 
eral counties,  cities,  towns,  and  villages. 

Telegraph,  telephone,  and  express  companies  are  assessed  by  the  state 
board  of  equalization  on  their  property,  real  and  personal,  including 
franchises,  in  the  same  manner  as  railroad  property.  The  same  rule 
applies  to  toll  bridges  and  bridges  over  streams  dividing  this  state  from 
any  other  state.  Penalty  for  failure  to  render  the  required  statement  is 
forfeiture  of  $100  for  county  public  school  fund  in  each  county  in  which 
such  bridge,  express,  telegraph,  or  telephone  company  has  used  its  fran- 
chises. 

The  franchises  (other  than  the  right  to  be  a  corporation)  of  all  rail- 
road, street  railroad,  bridge,  telegraph,  telephone,  conduit,  water,  elec- 
tric light,  and  gas  companies,  and  of  all  similar  quasi  public  corpora- 
tions possessing  special  and  peculiar  privileges  and  authorized  by  law  to 
perform  public  service,  are  to-be  assessed  as  other  property  of  such  cor- 
porations is  assessed. 

The  state  board  of  equalization  in  cases  of  railroads,  street  railroads, 
bridges,  and  telegraph  and  telephone  companies  assesses  the  total  value 
of  the  property,  tangible  and  intangible. 

c.  Equalization. — Cities  of  the  first  class  have  their 
own  boards  of  equalization,  which  equalize  the  city 
assessment. 

The  county  board  of  equalization  equalizes  the  val- 
uation on  all  real  and  personal  property  in  the  county 
to  make  it  conform  to  its  true  value. 

The  state  board  of  equalization  adjusts  and  equal- 
izes the  valuation  of  real  and  personal  property 
among  the  several  counties  in  the  state.  It  has 
power  to  equalize  the  assessment  of  each  class  of 
property,  real  and  personal,  separately. 

2.  Rate- 
There  is  levied  by  statute  for  state  purposes  15  cents 

on  each  $100  for  state  revenue,  and  10  cents  on  each 
$100  for  payment  of  state  indebtedness.  The  rate  for 
state  purposes  is  limited  by  the  constitution.  These 
limits  were,  however,  changed  in  1902. 

3.  Collection — 

Taxes  are  collected  by  the  collector  of  the  revenue 
for  the  county.  He  gives  notice  when  the  taxpayers 
are  to  meet  him  and  pay  their  taxes.  After  October 
1  the  collector  may  seize  and  sell  goods  and  chattels  as 
under  execution,  and  after  January  1 , 1  per  cent  a  month 
is  added.  Taxes  are  a  lien  on  real  property  on  which 
they  are  assessed,  and  after  January  1  the  state's  liens 
for  taxes  may  be  enforced  by  suit  and  sale. 

Railroad  taxes  due  the  state,  county,  cities,  towns,  villages,  and 
school  districts  are  due  September  1  and  payable  to  the  county  collector. 
These  taxes  are  delinquent  after  January  1  and  collection  is  enforced  by 
suit. 


The  collector  is  compensated  by  commissions  on 
the  amount  collected. 

II.  Poll  tax. 

There  is  no  state  poll  tax.     (See  County  revenues.) 

III.  Inheritance  tax. 

All  property  passing  by  will  or  by  the  intestate  laws 
of  the  state,  or  transferred  in  contemplation  of  death, 
other  than  to  the  father,  mother,  husband,  wife, 
adopted  child,  or  lineal  descendant  is  subject  to  a  tax 
of  $5  on  each  $100  of  clear  market  value.  Property 
conveyed  for  educational,  charitable,  or  religious  pur- 
poses is  exempt.  The  proceeds  of  this  tax  go  to  the 
state  university  and  to  other  educational  purposes. 

IV.  Corporation  taxes. 

Corporations  are  in  general  taxed  on  their  property 
as  individuals. 

Car  companies  pay  a  state  tax  of  2  per  cent  on  the  valuation  as  made 
by  the  state  board  of  equalization  in  lieu  of  all  other  taxes. 

Express  companies  pay  a  state  tax  of  1}  per  cent  of  their  gross  receipts 
within  the  state. 

Domestic  insurance  companies  are  taxed  on  their  property  and  paid- 
up  capital  stock.  Foreign  insurance  companies  are  assessed  on  premi- 
ums received  in  the  state  at  the  rate  of  2  per  cent  per  annum  in  lieu  of 
all  other  taxes.  One-half  of  this  tax  goes  to  the  county  foreign  insur- 
ance tax  fund,  and  is  apportioned  to  the  counties  according  to  the  num- 
ber of  school  children.  St.  Louis  is  accounted  a  county  in  the  appor- 
tionment. 

V.  Business  taxes  and  licenses. , 

The  taxes  on  merchants  and  on  manufacturers  are 
in  form  license  taxes,  but  are  in  fact  property  taxes. 
Both  state  and  counties  include  them*  in  their  reports 
of  general  property  taxes. 

Merchants. — No  person  may  deal  as  a  merchant  without  a  license. 
The  tax  is  an  ad  valorem  tax  equal  to  that  levied  on  real  estate  and 
based  on  the  highest  amount  of  all  goods,  wares,  and  merchandise  mer- 
chants have  in  their  possession  between  the  first  Monday  in  March  and 
the  first  Monday  in  June,  a  statement  of  which  every  merchant  is  re- 
quired to  make  to  the  county  assessor.  Commission  merchants  are  not 
required  to  pay  on  articles  merely  consigned  for  sale.  The  license  au- 
thorizes the  merchant  to  deal  at  only  one  place  within  the  county. 

Manufacturers. — All  manufacturers  are  to  be  licensed  and  taxed  on 
all  raw  material  and  finished  products,  as  well  as  on  all  the  tools,  ma- 
chinery, and  appliances  used  by  them,  in  the  same  manner  as  merchants. 
They  are  to  make  their  statement  of  the  greatest  aggregate  amount  of 
raw  material  and  finished  products  on  hand  between  the  first  Monday  in 
March  and  the  first  Monday  in  June.  Beer  manufacturers  in  the 
state  are  subject  to  state  inspection,  and  for  their  services  the  inspec- 
tors receive  a  fee  of  1  cent  a  gallon  for  inspecting  and  gauging,  and  2 
cents  for  labeling  each  package  other  than  bottles  that  contain  8  gallons 
or  less.  Twenty-four  quart  and  48  pint  bottles  are  considered  as  con- 
stituting a  package,  in  the  meaning  of  the  law.  Packages  containing 
over  8  gallons  are  construed  as  constituting  one  package  for  every  8 
gallons  and  fractions  thereof. 

Auctioneers. — License  for  ten  days,  $10;  for  one  month,  $25;  for  three 
months,  $50;  for  six  months,  $75.  Collectors'  fees,  50  cents  (duty  to 
the  state  on  the  proceeds  of  sales  of  personal  property,  except  stocks, 
1$  per  cent).  The  county  courts  may  graduate  the  license  tax  to  be 
imposed  on  each  license ;  the  tax  to  the  state  for  six  months  is  not  to  be 
less  than  $10  nor  more  than  $100. 

Brokers.— Brokers  are  taxed  for  six  months,  according  to  the  amount 
of  business  expected  to  be  done,  or  the  amount  of  capital  to  be  em- 


TAXATION  AND  REVENUE  SYSTEMS— MISSOURI. 


737 


ployed:  $5,000  or  less,  $50;  $5,000  to  $10,000,  $75;  $10,000  to  $15,000, 
$100;  $15,000  to  $20,000,  $125;  $20,000  to  $30,000,  $175;  $30,000  to 
$.50,000,  $2,50;  $50,000  to  $75,000,  $300;  $75,000  to  $100,000,  $350; 
$100,000  to  $150,000,  $400;  $150,000  to  $200,000,  $450;  $200,000  to 
$300,000,  $500;  $300,000  to  $500,000,  $600;  $500,000  and  over,  $1,000. 

Billiard  tables.— First,  $20;  each  additional,  $10. 

Ferries. — Amount  to  be  fixed  by  the  county  court,  $2  to  $5,000. 

Insurance  brokers. — Certificate,  $10;  industrial  companies,  50  cents. 

Peddlers. — On  foot,  per  six  months,  $3;  one  or  more  horses,  per  six 
months,  $10;  boat,  first  license,  per  day,  $1;  afterwards,  per  day,  50 
cents. 

Pool  selling,  bookmaking,  or  registering  bets. — Auction  pooling,  per 
day,  $5;  each  book,  per  day,  $5;  registration  of  bets,  per  day,  $5. 

Liquors. — License  for  sale  and  manufacture  of  distilled  liquors  and 
wines,  per  gallon,  10  cents,  collected  by  stamps.  Dramshop  keepers, 
who  may  soil  liquors  at  retail  not  exceeding  10  gallons,  are  taxed  for 
state.  OOtinty,  and  municipal  purposes  on  the  value  of  liquors  received  at 
the  shop,  an  ad  valorem  tax  of  the  same  amount  as  that  paid  by  mer- 
chants oti  merchandise;  also  license  tax,  for  state  purposes,  $50  to  $100 
(in  1903  made  $50  to  $200  for  state,  $250  to  $400  for  county,  every  six 
months). 

B.    FEES. 

Secretary  of  state. — Corporations  (except  benevolent,  religious,  scien- 
tific, fraternal,  beneficial,  or  educational),  filing  articles  on  first  $50,000 
or  less  of  capital  stock,  $50;  on  every  additional  $10,000,  $5;  increase 
capital  stock  per  $10,000,  $5;  foreign  corporations,  license  fee,  $10;  upon 
the  proportion  of  capital  stock  represented  by  its  property  and  business 
transacted  in  the  state — First  $50,000  or  less,  $50;  each  additional 
$10,000  or  less,  $5;  superintendent  of  insurance,  $5;  permit  to  do  busi- 
ness in  the  state,  to  fraternal-beneficiary  associations,  $50;  filing  declara- 
tion on  organization  or  admission  to  state,  $50;  annual  statement,  $30; 
supplementary  statement,  $10;  other  papers,  $10;  agent's  copy  of  com- 
pany's certificate  of  authority,  $2.  Mutual  companies'  fee  for  certificate 
of  incorporation,  $75;  assessment  companies,  for  issuing  certificate,  $25; 
for  annual  statement,  $25;  for  agent's  copy,  etc.,  $2  (does  not-apply  to 
fraternal  companies);  domestic  companies,  stipulated  premium  plan, 
same  fees  as  assessment  companies.  Barbers — Board  of  examiners, 
certificate,  $1;  annual  certificate  or  license,  $1.  Druggists — Registra- 
tion, $1;  examination,  $3.  Dentists — Examination,  $10.  Embalm- 
ers — License,  $5;  registration,  $2. 

County  Revenues, 
a.  taxes* 

I.  The  general  property  tax. 

1.  Base — 

The  property  included  and  the  methods  of  assess- 
ment and  of  equalization  are  the  same  for  county  taxes 
as  for  state  taxes. 

2.  Rate— 

The  county  court  fixes  the  rate  of  county  tax:  In  counties  having 
$6,000,000  worth  of  property  or  less,  not  to  exceed  50  cents  on  $100;  in 
counties  having  $10,000,000  worth,  not  to  exceed  40  cents  on  $100;  in 
counties  having  $30,000,000  worth,  not  to  exceed  50  cents  on  $100; 
in  counties  having  more  than  $30,000,000  worth,  35  cents  on  $100. 

The  rate  of  taxation  on  the  roadbed,  rolling  stock,  and  other  movable 
property  of  railroads  for  school  purposes  and  for  the  erection  of  public 
buildings  is  the  average  of  the  rates  in  the  school  districts  and  districts 
levying  a  tax  for  buildings. 

In  counties  under  township  organization  the  same  limitation  of  rates 
applies,  township  taxes  being  considered  by  the  courts  as  essentially 
county  taxes. 

3.  Collection — 
Same  as  for  state. 

II.  Poll  tax. 

The  county  assessor  is  to  make  a  list  of  all  male  in- 
habitants over  21  and  under  60  years  of  age  outside 
932—07 17 


of  cities  and  towns.  The  county  court  may  levy  a 
poll  tax  of  from  $1.50  to  $3,  which  is  collected  as  other 
state  and  county  taxes  and  applied  to  road  purposes. 
It  may  be  paid  in  labor  in  lieu  of  money. 

Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There  are  no  inheritance  or  special  corporation  taxes 
for  the  counties,  other  than  the  county's  share  of  the 
insurance  fund. 
V.  Business  taxes  and  licenses. 

On  all  businesses  made  taxable  by  law  the  county 
court  may  levy  a  tax,  but  the  rate  must  not  exceed  the 
state  revenue  tax  by  more  than  100  per  cent.  The 
state  interest  tax  is  not  to  be  construed  as  a  part  of 
the  state  revenue  tax. 

On  merchants  and  manufacturers — no  county  is  to  levy  licenses  over 
100  per  cent  more  than  the  rate  authorized  for  state  purposes;  auc- 
tioneers, six  months,  $10  to  $100;  billiard  tables— for  first,  $20,  for 
others,  $10;  on  peddlers  the  rate  must  not  exceed  that  of  the  state;  on 
dramshops,  the  rate  fixed  by  the  county  court  is  from  $250  to  $400 
(two-thirds  is  to  be  set  apart  as  a  special  road  fund);  shows  and 
circuses — the  county  courts  may  impose  such  tax  as  they  may  deem 
proper  and  reasonable,  the  proceeds  of  which  go  to  the  county  school 
fund. 

Municipal  Revenues. 

a.   TAXES. 

I.  The  general  property  tax. 

1.  Base — 

The  property  included  and  the  methods  of  assess- 
ment and  of  equalization  are  the  same  for  municipal 
as  for  state  taxation.  St.  Louis  and  cities  of  the  first 
and  second  classes  have  their  own  local  valuations  and 
boards  of  equalization. 

2.  Rate— 

Cities  of  the  first  class  are  authorized  to  levy  for 
local  purposes  a  lower  ad  valorem  rate  of  taxation 
on  merchandise  held  by  merchants,  and  the  raw 
materials,  merchandise,  finished  products,  tools, 
machinery,  and  appliances  used  by  manufacturers 
than  on  real  estate  and  other  property.  Such  cities 
may  license  merchants  and  manufacturers  in  propor- 
tion to  sales  made. 

(1)  In  cities  of  the  first  class  (those  with  a  population  of  100,000  or 
more)  the  municipal  assembly  may  levy  not  exceeding  1  per  cen  Jfor  mu- 
nicipal purposes  and  such  sum  as  is  necessary  to  pay  the  interest  on  the 
public  debt. 

(2)  In  cities  of  the  second  class  (those  with  a  population  of  30,000  to 
100,000)  the  tax  is  1  per  cent. 

(3)  In  cities  of  the  third  class  (those  with  a  population  of  3,000  to 
30,000)  if  the  population  is  over  10,000.  the  levy  is  not  to  exceed  60 
cents  on  $100  valuation;  if  it  is  less  than  10,000,  the  rate  is  not  to  exceed 
50  cents  on  $100. 

(4)  In  cities  of  the  fourth  class  (those  with  a  population  of  1,000  or 
less)  the  rate  is  25  cents  on  $100. 

3.  Collection — 

Collection  is  made  by  the  city  collectors. 

II.  Poll  tax. 

Cities  of  the  first  class  may  levy  on  all  male  citizens 
between  21  and  60  years  of  age  a  poll  tax  of  $1.50  for 
improvement  of  streets ;  cities  of  the  second  class  may 


738 


WEALTH,  DEBT,  AND  TAXATION. 


levy  on  all  able-bodied  male  citizens  between  21  and 
50  years  of  age  one  not  to  exceed  $2;  towns  and  vil- 
lages may  levy  on  all   able-bodied  male  citizens  be- 
tween 21  and  50  years  of  age  one  not  to  exceed  $3. 
Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There  are  no  inheritance  or  special  corporation 
taxes  for  the  municipalities. 

V.  Business  taxes  and  licenses. 

No  city,  town,  or  village  may  tax  ministers,  teach- 
ers, priests,  lawyers,  or  doctors,  but  municipalities 
may  levy  license  taxes  on  all  other  occupations, 
trades,  and  amusements. 

Cities  of  the  first  class  may  require  a  license  tax  on  agents  of  foreign 
insurance  companies  not  to  exceed  $100  per  year;  on  dramshops  the  tax 
as  fixed  by  the  authorities  of  towns  and  cities;  on  merchants  and  manu- 
facturers no  municipality  is  to  levy  any  greater  amount  of  tax  than  the 
state  levies;  on  billiard  and  other  amusement  tables,  $20  for  the  first, 
$10  for  others. 

D.    INCOME    FROM    PUBLIC    PROPERTY. 

Cities  with  a  population  of  50,000  or  more,  having 
an  improved  wharf,  are  authorized  to  collect  a  wharf- 
age tax  not  to  exceed  3  cents  per  ton  from  all  boats 
assessed  in  the  city  for  each  landing  at  the  wharf  and 
one  of  5  cents   per  ton  from   boats   not   assessed   in 


the  city.  Cities  with  a  population  of  from  5,000  to 
50,000  are  authorized  to  collect  $2  for  every  landing. 
Cities  with  a  population  of  less  than  5,000  may  col- 
lect $1.50  per  landing. 

School  Revenues. 

The  public  school  fund  is  apportioned  among  the 
counties  and  the  several  districts  therein  in  propor- 
tion to  the  number  of  pupils. 

School  taxes  are  levied  on  the  property  of  each  dis- 
trict, including  the  goods,  wares,  and  merchandise  of 
merchants,  by  the  county  clerk,  and  are  not  to  exceed 
for  building  purposes  1  per  cent  in  cities,  towns,  and 
villages  and  65  cents  on  $100  in  other  districts.  For 
the  sinking  fund  there  may  be  levied  40  cents  on  $100 
and  in  addition  a  sufficient  amount  to  pay  interest. 

The  tax  levy  may,  however,  be  increased  by  special 
election  in  the  district. 

The  state  tax  on  foreign  insurance  companies  and 
the  county  tax  on  shows  and  circuses  go  to  the  school 
fund.  Where  fines  and  forfeitures  in  criminal  cases 
are  granted  to  any  schools  other  than  the  common 
schools,  one-third  of  the  county  revenue  derived  from 
dramshop  licenses  is  to  be  set  apart  for  the  latter. 


•MONTANA. 


Montana  derives  its  state  revenue  principally  from 
the  general  property  tax.  Poll  taxes  and  business 
taxes  and  licenses  are  left  to  the  counties  and  munici- 
palities, which  may  impose  license  taxes  on  businesses, 
trades  and  professions,  amusements,  and  the  usual 
subjects  of  taxation.  There  is  a  state  inheritance  tax, 
of  which  40  per  cent  goes  to  the  county  school  fund. 
There  are  no  special  corporation  taxes,  except  certain 
licenses  on  insurance  companies. 

CONSTITUTIONAL    PROVISIONS. 

ARTICLE    XII. 

Sec.  1.  The  necessary  revenue  for  the  support  and  maintenance  of 
the  state  shall  be  provided  by  the  legislative  assembly,  which  shall  levy  a 
uniform  rate  of  assessment  and  taxation,  and  shall  prescribe  such  regu- 
lations as  shall  secure  a  just  valuation  for  taxation  of  all  property,  except 
that  specially  provided  for  in  this  article.  The  legislative  assembly 
may  also  impose  a  license  tax  both  upon  persons  and  upon  corpora- 
tions doing  business  in  the  state. 

Sec.  2.  The  property  of  the  United  States,  the  state,  counties,  cities, 
towns,  school  districts,  municipal  corporations,  and  public  libraries 
shall  be  exempt  from  taxation ;  and  such  other  property  as  may  be  used 
exclusively  for  agricultural  and  horticultural  societies,  for  educational 
purposes,  places  for  actual  religious  worship,  hospitals  and  places  of 


•This  compilation  is  derived  mainly  from  the  following  sources: 

The  Complete  Codes  and  Statutes  of  the  State  of  Montana,  in  force 
July  1,  1895,  edited  by  Wilbur  F.  Sanders,  esq. :  Helena,  Mont.,  1895. 

Laws  of  Montana,  1897.  State  Publishing  Company,  Helena,  Mont., 
1897. 

Laws  of  Montana,  1899.  State  Publishing  Company,  Helena,  Mont., 
1899. 

Laws  of  Montana,  1901.  State  Publishing  Company,  Helena,  Mont., 
1901. 


burial  not  used  or  held  for  private  or  corporate  profit,  and  institutions 
of  purely  public  charity  may  be  exempt  from  taxation. 

Sec.  3.  All  mines  and  mining  claims,  both  placer  and  rock  in  place, 
containing  or  bearing  gold,  silver,  copper,  lead,  coal,  or  other  valuable 
mineral  deposits,  after  purchase  thereof  from  the  United  States,  shall  be 
taxed  at  the  price  paid  the  United  States  therefor,  unless  the  surface 
ground  or  some  part  thereof  of  such  mine  or  claim  is  used  for  other  than 
mining  purposes  and  has  a  separate  and  independent  value  for  such 
other  purposes,  in  which  case  said  surface  ground  or  any  part  thereof 
so  used  for  other  than  mining^  purposes  shall  be  taxed  at  its  value  for 
such  other  purposes,  as  provided  by  law ;  and  all  machinery  used  in 
mining,  and  all  property  and  surface  improvements  upon  or  appurtenant 
to  mines  and  mining  claims  which  have  a  value  separate  and  independ- 
ent of  such  mines  or  mining  claims,  and  the  annual  net  proceeds  of  all 
mines  and  mining  claims  shall  be  taxed  as  provided  by  law. 

Sec.  4.  The  legislative  assembly  shall  not  levy  taxes  upon  the  inhabi- 
tants or  property  in  any  county,  city,  town,  or  municipal  corporation 
for  county,  town,  or  municipal  purposes,  but  it  may  by  law  vest  in  the 
corporate  authorities  thereof  powers  to  assess  and  collect  taxes  for  such 
purposes. 

Sec.  5.  Taxes  for  city,  town,  and  school  purposes  may  be  levied  on  all 
subjects  and  objects  of  taxation,  but  the  assessed  valuation  of  any  prop- 
erty shall  not  exceed  the  valuation  of  the  same  property  for  state  and 
county  purposes. 

Sec.  6.  No  county,  city,  town,  or  other  municipal  corporation,  the 
inhabitants  thereof  or  the  property  therein,  shall  be  released  or  dis- 
charged from  their  or  its  proportionate  share  of  state  taxes. 

Sec.  7.  The  power  to  tax  corporations  or  corporate  property  shall 
never  be  relinquished  or  suspended,  and  all  corporations  in  this  state,  or 
doing  business  therein,  shall  be  subject  to  taxation  for  state,  county, 
school,  municipal,  and  other  purposes  on  real  and  personal  property 
owned  or  used  by  them  and  not  by  this  constitution  exempted  from  tax- 
ation. 

Sec.  8.  Private  property  shall  not  be  taken  or  sold  for  the  corporate 
debts  of  public  corporations,  but  the  legislative  assembly  may  provide 


TAXATION  AND  REVENUE  SYSTEMS— MONTANA. 


739 


fcy  law  for  the  funding  thereof  and  shall  provide  by  law  for  the  pay- 
ment thereof,  including  all  funded  debts  and  obligations,  by  assessment 
and  taxation  of  all  private  property  not  exempt  from  taxation  within 
the  limits  of  the  territory  over  which  such  corporations  respectively 
have  authority. 

Sec.  9.  The  rate  of  taxation  of  real  and  personal  property  for  state 
purposes  in  any  one  year  shall  never  exceed  three  (3)  mills  on  each  dollar 
of  valuation;  and  whenever  the  taxable  property  in  the  state  shall 
amount  to  one  hundred  million  dollars  ($100,000,000),  the  rate  shall  not 
exceed  two  and  one-half  (2J)  mills  on  each  dollar  of  valuation;  and 
whenever  the  taxable  property  in  the  state  shall  amount  to  three  hun- 
dred million  dollars  ($300,000,000),  the  rate  shall  never  thereafter  exceed 
one  and  one-half  (1$)  mills  on  each  dollar  of  valuation,  unless  a  propo- 
sition to  increase  such  rate  shall  have  been  submitted  to  the  people  at  a 
general  election,  specifying  the  rate  proposed  and  the  time  during  which 
the  same  shall  be  levied  and  shall  have  received  a  majority  of  all  votes 
cast  for  and  against  it. 

Sec.  11.  Taxes  shall  be  levied  and  collected  by  general  laws  and  for 
public  purposes  only.  They  shall  be  uniform  upon  the  same  class  of 
subjects  within  the  territorial  limits  of  the  authority  levying  the  tax. 

Sec.  1 5.  The  governor,  secretary  of  state,  state  treasurer,  state  auditor, 
and  attorney-general  shall  constitute  a  state  board  of  equalization,  and 
the  board  of  county  commissioners  of  each  county  shall  constitute  a 
county  board  of  equalization.  The  duty  of  the  state  board  of  equaliza- 
tion shall  be  to  adjust  and  equalize  the  valuation  of  the  taxable  property 
among  the  several  counties  of  the  state.  The  duty  of  the  county  board  of 
equalization  shall  be  to  adjust  and  equalize  the  valuation  of  taxable 
property  within  their  respective  counties.  Each  board  shall  also  per- 
form such  other  duties  as  may  be  prescribed  by  law. 

Sec.  16.  All  property  shall  be  assessed  in  the  manner  prescribed  by 
law  except  as  is  otherwise  provided  in  this  constitution.  The  franchise, 
roadway,  roadbed,  rails,  and  rolling  stock  of  all  railroads  operated  in 
more  than  one  county  in  this  state  shall  be  assessed  by  the  state  board  of 
equalization,  and  the  same  shall  be  apportioned  to  the  counties,  cities, 
towns,  townships,  and  school  districts  in  which  such  railroads  are  located, 
in  proportion  to  the  number  of  miles  of  railway  laid  in  such  counties, 
cities,  towns,  townships,  and  school  districts. 

Sec.  17.  The  word  property  as  used  in  this  article  is  hereby  declared 
to  include  moneys,  credits,  bonds,  stocks,  franchises  and  all  matters  and 
things  (real,  personal,  and  mixed)  capable  of  private  ownership,  but  this 
shall  not  be  construed  so  as  to  authorize  the  taxation  of  the  stocks  of 
any  company  or  corporation  when  the  property  of  such  company  or  cor- 
poration represented  by  such  stocks  is  within  the  state  and  has  been 
taxed. 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  County  assessor,  elected  for  two  years. 

(2)  County  treasurer,  collector  of  taxes,  elected  for  two  years. 

(3)  Board  of  appraisers  of  three  members,  appointed  by  the  judge  of 
the  district  court  to  fix  valuation  of  real  estate  in  the  county.  (The 
provisions  for  this  board  were  repealed  in  1903.) 

(4)  County  board  of  equalization,  composed  of  the  board  of  county 
commissioners. 

(5)  State  board  of  equalization,  composed  of  the  governor,  secretary 
of  state,  state  treasurer,  state  auditor,  and  attorney-general. 

State  Revenues. 

a.    TAXES. 

I.    The  general  property  tax. 
1.  Base — 
a.    The  property  included  and  exempt. — All  the  prop- 
erty in  this  state  is  subject  to  taxation,  except  as 
specially  exempted. 


(1)  "  Real  estate,"  for  the  purposesof  taxation,  includes  the  possession 
of,  claim  to,  ownership  of,  or  right  to  the  possession  of  land;  all  mines, 
minerals,  and  quarries  in  and  under  the  land;  all  timber  growing  on 
lands  of  the  United  States,  and  all  improvements,  rights,  and  privileges 
appertaining  thereto.  "Improvements"  includes  all  buildings,  struc- 
tures, and  fixtures  erected  upon  or  affixed  to  the  land,  whether  the  title 
to  the  land  has  been  acquired  or  not. 

(2)  "Personal  property"  includes  everything  that  is  subject  to 
ownership  not  included  in  the  terms  "  real  estate  "  and  "  improvements." 
The  excess  of  premiums  collected  by  insurance  companies  over  their 
losses  and  ordinary  expenses  is  assessed  as  personal  property. 

(3)  The  exemptions,  in  addition  to  public  property,  are:  Public 
libraries;  property  used  for  educational  purposes;  agricultural  and 
horticultural  societies;  churches;  hospitals;  cemeteries;  institutions  of 
purely  public  charity;  and  the  land  necessary  for  the  foregoing  pur- 
poses. 

b.  Assessment. — The  assessment  of  all  property  for 
state,  county,  and  municipal  purposes  is  made  by  the 
county  assessors  annually  and  refers  to  the  first  Monday 
of  March.  The  assessor  is  to  require  a  statement  under 
oath  of  all  property  and  its  value.  Any  property 
willfully  concealed,  removed,  transferred,  or  misrepre- 
sented by  the  owner  to  evade  taxation  is  required,  upon 
discovery,  to  be  assessed  at  not  exceeding  ten  times  its 
value,  and  such  assessments  are  not  to  be  reduced  by 
the  board  of  equalization.  Refusal  to  give  a  list  or 
the  falsifying  of  a  list  is  punishable  as  a  misdemeanor 
by  imprisonment  for  not  exceeding  six  months  or  a 
fine  of  not  exceeding  $500,  or  both.  Taxable  prop- 
erty is  to  be  assessed  at  full  cash  value  which  is  de- 
fined as  the  amount  at  which  the  property  would  be 
taken  in  payment  of  a  just  debt  due  from  a  solvent 
debtor.  Valuations  of  real  estate  are  fixed  by  a  board 
of  appraisers  appointed  by  the  judge  of  the  district 
court,  and  the  county  assessor  must  take  the  valua- 
tions so  fixed.  (Since  1903  these  values  have  been 
fixed  by  the  assessor.) 

Mines  and  mining  claims  are  to  be  assessed  at  the  price  paid  the  United 
States  therefor,  unless  the  surface  has  an  independent  value  for  other 
than  mining  purposes.  They  are  also  assessed  on  their  net  proceeds  as 
personalty,  and  this  forms  the  rear  basis  of  taxation. 

Shares  in  state  and  national  banks  are  to  be  assessed  where  the  bank  is 
located.  Real  estate  is  assessed  to  the  bank  and  a  proportionate 
amount  deducted  from  the  valuation  of  the  shares.  Shares  in  banks  not 
located  in  the  state  are  not  taxed. 

Gas  and  water  mains  and  pipes  laid  in  the  streets  are  assessed  as  per- 
sonal property,  also  tracks  of  street  railroads,  and  bridges. 

In  making  up  the  amount  of  credits  which  any  person  is  required  to 
list,  he  is  entitled  to  deduct  from  the  gross  amount  all  bona  fide  debts 
owing  by  him  except  notes  for  insurance  premiums  and  unpaid  sub- 
scriptions to  societies  or  to  the  capital  stock  of  any  corporation. 

The  capital  stock  and  franchises  of  corporations  are  to  be  listed  where 
the  principal  office  is  located.  Corporations  are  assessed  on  their  prop- 
erty the  same  as  individuals. 

The  franchise,  roadway,  roadbed,  rails,  and  rolling  stock  of  railroads 
operating  in  more  than  one  county  are  assessed  by  the  state  board  of 
equalization.  Franchises  granted  by  the  United  States  are  exempt. 
Other  railroads  and  railroad  property  are  assessed  by  the  county  assess- 
ors. The  assessment  made  by  the  state  board  is  apportioned  among 
the  different  counties  on  the  basis  of  mileage,  and  to  the  cities,  towns, 
school,  road,  or  other  districts,  on  the  same  basis. 

c.  Equalization. — The  county  board  of  equalization 
adjusts  and  equalizes  between  individuals  and  may 
increase  or  lower  any  assessment. 


740 


WEALTH,  DEBT,  AND  TAXATION. 


The  state  board  of  equalization  adjusts  and  equalizes 
the  valuations  of  taxable  property  between  the  several 
counties  of  the  state. 

2.  Bate— 

The  rate  is  to  be  fixed  by  the  state  board  of  equali- 
zation, and,  after  allowing  12  per  cent  for  delinquencies 
and  cost  of  collection,  it  must  be  sufficient  to  raise  the 
specific  amount  of  revenue  directed  by  the  legislative 
assembly  to  be  raised  for  state  purposes. 

The  rate  is  limited  by  constitutional  provision  to  3 
mills.     (See  Article  XII,  sec.  9.) 

The  rate  levied  in  the  fiscal  years  1901  and  1902  was  2J  mills  on  each 
dollar  of  valuation. 

3.  Collection — 

Taxes  are  collected  by  the  county  treasurer.  They 
are  delinquent  on  the  first  Monday  in  December  and  a 
penalty  of  10  per  cent  is  added  to  the  amount  thereof. 
Taxes  on  real  property  are  a  lien  against  the  property 
assessed  and  taxes  on  personal  property  are  a  lien  upon 
the  real  property  of  the  owner  thereof,  which  liens 
attach  as  of  the  first  Monday  of  March  in  each  year. 

The  assessor  must  collect  the  taxes  on  all  personal 
property  when  such  taxes  are  a  lien  upon  real  property 
which  in  his  opinion  is  not  sufficient  to  secure  their 
payment.  He  may  enforce  collection  by  seizure  and 
sale.  The  assessor  in  such  cases  is  to  be  governed  by 
the  state  and  county  rate  of  the  previous  year,  and  any 
excess  or  deficiency  is  adjusted  later  after  the  rate  is 
fixed  for  the  year. 

II.  Poll  tax. 

There  is  no  state  poll  tax. 

III.  Inheritance  tax. 

The  tax  on  direct  lineal  inheritance  applies  to 
estates  wherein  personal  property  is  valued  at  $7,500 
or  more.     Realty  is  exempt.     The  rate  is  $1  on  $100. 

The  tax  on  collateral  inheritance,  that  is,  on  trans- 
fers to  take  effect  at  death,  other  than  to  father, 
mother,  husband,  wife,  brother,  sister,  wife  of  son, 
husband  of  daughter,  adopted  child,  or  lineal  de- 
scendant, is  at  the  rate  of  $5  on  $100  of  market  value. 
This  tax  applies  to  estates  valued  at  over  $500, 
whether  consisting  of  real  or  personal  property.  The 
county  treasurer  collects  the  tax  and  pays  over  60  per 
cent  to  the  state ;  40  per  cent  is  retained  for  the  county 
school  fund. 

IV.  Corporation  taxes. 

Corporations  are,  in  general,  taxed  under  the  general 
property  tax. 

Insurance  companies  are  taxed  on  the  excess  of  premiums  over  losses 
and  expenses  as  on  personal  property.  There  are,  too,  certain  licenses 
on  insurance  companies,  different  in  kind  from  ordinary  business  taxes 
and  licenses. 

License  to  collect  premium  to  an  amount  over  $5,000,  per  $1,000,  $20; 
*  *  *  premium  less  than  $5,000,  $125;  foreign  insurance  companies, 
$300. 


V.  Business  taxes  and  licenses. 

These  are  left  to  the  county  to  administer,  but  the 
state  shares  therein. 

B.    FEES. 

For  copies  of  laws,  etc.,  20  cents  per  folio;  seal,  $1 ;  each  certificate  of 
incorporation,  $3 ;  recording  and  filing  each  certificate  of  incorporation- 
minimum  $20,  50  cents  per  $1,000  of  capital  stock;  stock  in  excess  of 
$1,000,000,25  cents  per  $1,000,  maximum  $1,000.  Certificate  of  in- 
crease or  decrease  of  stock,  $5;  certificate  of  continuance  of  corporate 
existence,  $3  and  25  cents  per  $1,000  of  capital  up  to  $1,000,000,  10 
cents  in  excess  over  $1 ,000,000,  limit  $1 ,000.  Filing  notice  of  removal,  or 
of  change  of  name,  $5;  filing  certified  copy  of  charter  on  a-ticles  of  incor- 
poration of  foreign  corporation,  $20;  filing  appointment  of  agent,  $5; 
recording  official  bond,  $2;  commissions,  $5;  filing  miscellaneous 
papers,  $1.     (All  changed  in  1905.) 

County  Revenues. 

a.   TAXES. 

I.  The  general  property  tax. 

1.  Base — 

The  property  included  and  the  methods  of  assess- 
ment and  of  equalization  thereof  are  the  same  for  county 
as  for  state  taxes. 

2.  Bate— 

The  board  of  county  commissioners  of  each  county 
fixes  the  rate  of  county  taxes  and  designates  the  num- 
ber of  mills  on  each  dollar  of  valuation  of  property  for 
each  fund.  The  tax  for  general  purposes  may  not 
exceed  16  mills  on  the  assessed  valuation.  Two  mills 
must  be  levied  for  schools.  The  board  may  also  levy 
a  tax  not  to  exceed  one-fifth  of  1  per  cent  for  poor 
relief.  There  is  to  be  levied  on  all  property  in  the 
county  a  tax  of  not  less  than  1  mill  nor  more  than  2 
mills  on  the  dollar  for  road  purposes. 

II.  Poll  tax. 

a.  General. — Every  male  inhabitant  of  the  state 
over  21  and  under  60  years  of  age,  except  paupers, 
insane  persons,  and  Indians  not  taxed,  must  annually 
pay  a  poll  tax  of  $2.  In  case  a  person's  name  does  not 
appear  on  the  assessment  list,  payment  of  his  poll  tax 
is  to  be  demanded  by  the  assessor.  In  other  cases  the 
tax  is  to  be  added  to  the  assessment  list  and  paid  to 
the  county  treasurer  at  the  time  of  the  payment  of 
other  taxes.  The  treasurer  may  serve  notice  to  pay 
to  some  designated  person  or  collect  from  the  taxpayer's 
employer.  The  poll  tax  is  to  be  paid  to  the  county 
treasurer  for  the  exclusive  use  of  the  poor  fund  of  the 
county. 

b.  Boad. — Each  able-bodied  man  over  21  and  under 
45  years  of  age  residing  in  each  road  district  is  required 
to  pay  $3.  Payment  may  be  made,  however,  by  one 
day's  labor.  The  road  tax  is  due  and  payable  to  the 
county  treasurer  after  October  1  of  each  year  and  may 
be  collected  in  the  manner  provided  for  the  collection 
of  the  general  poll  tax. 


TAXATION  AND  REVENUE  SYSTEMS— MONTANA. 


741 


III.   Inheritance  tax. 

Forty  per  cent  of  the  state  inheritance  tax  goes  into 
the  county  school  fund. 
V.  Business  taxes  and  licenses. 

Merchants  selling  any  goods,  wares,  or  merchandise  are  required  to 
pav  quarterly  to  the  county  treasurer,  according  to  the  amount  of 
monthly  average  sales,  the  following  amounts:  First  class,  $100,000,  $75 
per  month;  second  class,  $75,000,  $60  per  month:  third  class,  $50,000, 
$40  per  month ;  fourth  class,  $40,000,  $25  per  month ;  fifth  class,  $30,000, 
$20  per  month;  sixth  class,  $20,000,  $15  per  month;  seventh  class, 
$10,000,  $12  per  month;  eighth  class,  $5,000,  $8  per  month;  ninth  class, 
$2,500,  $5  per  month;  tenth  class,  $1,2.50,  $4  per  month;  eleventh  class, 
$400,  $3  per  month;  twelfth  class,  less  than  $400, $1  per  month.  Oleo- 
margarine, license  1  cent  per  pound;  billiard  tables,  $3.75  per  quarter: 
bowling  alleys,  $10  per  quarter;  theaters,  $5  per  day,  $25  per  month; 
variety  show  and  concert,  $75  per  month;  circuses  or  menageries,  $125 
per  day:  pawnbrokers,  $55  per  quarter:  intelligence  office,  $10  per  quar- 
ter; shooting  gallery,  $15  per  quarter:  laundries,  other  than  steam,  $10 
per  quarter;  auctioneers,  according  to  monthly  sales,  $5  to  $400  per 
quarter:  bankers  and  brokers,  according  to  business  done,  $10  to  $100 
per  quarter;  lawyers,  dentists,  physicians,  photographers,  or  persons 
practicing  any  other  professions,  and  insurance,  loan,  and  real  estate 
agents  must  pay  a  license  of  $5  per  quarter;  livery  stables — towns  of 
500  inhabitant*  or  less,  $5  per  quarter;  500  to  1,500  inhabitants,  $10 
per  quarter;  1,500  or  more,  $15  per  quarter.  Omnibuses,  carriages, 
etc. — one  horse,  SI .50  per  quarter;  for  each  additional  horse,  $2.50  per 
quarter.  Express  companies  and  carriers  of  passengers — business 
$50,000  per  quarter,  $187.50  per  quarter :  $40,000  per  quarter,  $93.75  per 
quarter;  $30,000  per  quarter,  $62.50  per  quarter;  $10,000  per  quarter, 
$25.20  per  quarter;  $5,000  per  quarter,  $12.50  per  quarter.  Ferries,ac- 
cording  to  receipts,  $5  to  $125  per  quarter;  architects,  builders,  and 
manufacturers,  business  over  $15,000  per  year,  $10  per  quarter;  gas  or 
electric  light  companies — city  or  town  of  over  10,000  inhabitants,  $200 
per  year;  5,000  to  10,000  inhabitants,  $100  per  year;  1,500  to  5,000  in- 
habitants, $.50  per  yea:-.  Water  companies — city  or  town  of  more  than 
10,000  inhabitants,  $400  per  year;  5,000  and  less  than  10,000  inhabi- 
tants, $200  per  year;  1,500  and  less  than  5,000  inhabitants,  $100  per 
year:  less  than  1,500  inhabitants,  $50  per  year.  Telephone  companies, 
75  cents  per  year  for  each  instrument  in  use;  telegraph  companies,  for 
each  instrument  in  use,  $5  per  quarter.  Street  railways — in  towns  of 
oi  it  1,000  inhabitants,  $50  per  quarter;  in  towns  of  less  than  4,000,  $25 
per  quarter.  Assayers — $200  to  $500  per  month,  $10  per  quarter;  over 
$500  per  month,  $25  per  quarter.  Skating  rinks,  merry-go-rounds — cities 
of  3,000  inhabitants,  $50 per  quarter;  l,000andless  than  3,000  inhabi- 
tants, $30  per  quarter;  less  than  1,000  inhabitants,  $10  per  quarter. 
Public  scales,  $10  per  year;  railroad  company's  warehouse,  in  each 
county,  $10  per  year;  insurance  agent's  certificate,  $5;  peddlers — on 
foot,  $12.50  per  quarter;  with  wagon,  $20  per  quarter;  with  two  horses, 
$30  per  quarter;  other  traveling  merchants,  $50.  Sale  of  pools  on 
races,  $25  per  day;  stallion,  jack,  and  bull,  $10  to  $75;  to  hunt  deer, 
mountain  goat,  moose,  and  elk,  nonresidents,  $25;  to  hunt  grouse, 
prairie  chickens,  etc.,  nonresidents,  $15;  to  hunt  game,  residents,  $1. 
Liquors — in  city  of  10,000  inhabitants  or.  over  and  within  1  mile 
thereof,  $300  semiannually;  3,500  to  10,000,  $250  semiannually;  1,000 
to  3,500,  $240  semiannually;  300  to  1,000,  $200  semiannually;  less  than 
300,  $150  semiannually.  Wholesale  liquor  dealers,  same  as  merchants; 
distillers  of  spirituous  liquors,  $600  per  year;  cigarettes,  $10  per  month; 
brewers  of  malt  liquors  and  wholesalers  whose  sales  are  over  $3,000 
per  month,  $25  per  month;  over  $1,000  per  month,  $15  per  month;  over 
$500  per  month,  $7. .50  per  month;  less  than  $500  per  month,  $5  per 
month;  manufacturer  of  malt  only,  $100  per  year;  bottled  soda  water, 
etc.,  manufacturer — city  of  over  10,000  inhabitants,  $60  semiannually; 
5,000  to  10,000,  $40  semiannually;  less  than  5,000,  $25  semiannually. 

(N.  B. — Some  of  these  rates  were  changed  in  1903  and  1905.) 


Municipal  Revenues. 


A.    TAXES. 


I.  The  general  property  tax. 

1.  Base — 

The  property  included  and  the  methods  of  assess- 
ment and  of  equalization  are  the  same  for  cities  and 
towns  as  for  the  state,  but  the  council  may  by  ordi- 
nance provide  an  independent  assessment. 

2.  Rate— 

The  rate  is  determined  by  the  municipal  council. 
The  amount  of  taxes  levied  for  general  municipal  pur- 
poses must  not  exceed  1  per  cent  of  the  assessed  value. 

3.  Collection — 

The  city  or  town  treasurer  has  the  same  power  to 
collect  municipal  taxes  as  the  county  treasurer  has  to 
collect  state  and  county  taxes. 

II.  Poll  tax. 

All  able-bodied  male  inhabitants  of  a  city  or  town 
between  21  and  45  years  of  age  must  pay  an  annual 
road  poll  tax  of  not  exceeding  $3.  It  may  be  paid  in 
labor  on  the  roads. 

Ill  and  IV.  Inheritance  and  corporation  taxes. 

There  are  no  inheritance  or  corporation  taxes  for 
municipalities. 

V.  Business  taxes  and  licenses. 

The  council  may  by  ordinance  license  all  industries, 
pursuits,  professions,  and  occupations  for  which  under 
the  state  law  a  license  is  required,  but  the  amount 
must  not  exceed  the  sum  required  by  the  state  law. 

Water  companies  must  pay  a  license  tax  of  not  less  than  $50  and 
not  more  than  $400. 

Municipalities  may  license  the  keeping  of  dogs. 

School  Revenues. 

The  state  school  fund  consists  of  the  proceeds  of 
the  sale  of  school  lands  and  the  moneys  derived  from 
certain  other  sources.  The  income  is  apportioned  to 
the  counties. 

The  county  school  fund  consists  of  the  proceeds  of 
an  annual  tax  of  2  mills  on  the  dollar,  which  the  county 
commissioners  must  levy  at  the  time  other  taxes  are 
levied;  of  all  fines  and  forfeitures;  and  of  40  per  cent 
of  all  inheritance  taxes.  The  county  school  fund  to- 
gether with  the  county  share  of  the  state  school  fund 
is  apportioned  to  the  school  districts. 

The  county  commissioners  also  levy  a  tax  of  not  to 
exceed  5  mills  on  the  dollar  on  the  property  of  school 
districts  to  maintain  the  schools  of  such  districts. 

The  legislative  assembly  is  required  to  levy  such  a 
tax  for  school  purposes  as  is  reported  necessary  by 
the  state  auditor. 


742 


WEALTH,  DEBT,  AND  TAXATION. 


NEBRASKA. 


Nebraska  draws  her  revenue  mainly  from  the  general 
property  tax.  In  1901  an  inheritance  tax  was  adopted. 
There  are  no  special  corporation  taxes  except  on  for- 
eign insurance  companies.  Certain  fees  are  imposed. 
Poll  taxes  and  business  taxes  and  licenses  are  left  to 
counties  and  municipalities.  All  license  moneys,  fines, 
forfeitures,  and  penalties  go  to  the  schools. 

The  revenue  law  was  extensively  revised  in  1903,  but 
the  changes  have  not  been  carried  into  this  description. 

CONSTITUTIONAL    PROVISIONS. 

ARTICLE  IX. 

Sec.  I.  The  legislature  shall  provide  such  revenue  as  may  be  needful, 
by  levying  a  tax  by  valuation,  so  that  every  person  and  corporation  shall 
pay  a  tax  in  proportion  to  the  value  of  his,  her,  or  its  property  and  fran- 
chises, the  value  to  be  ascertained  in  such  manner  as  the  legislature 
shall  direct,  and  it  shall  have'power  to  tax  peddlers,  auctioneers,  brokers, 
hawkers,  commission  merchants,  showmen,  jugglers,  innkeepers,  liquor 
dealers,  toll  bridges,  ferries,  insurance,  telegraph,  and  express  interests  or 
business,  vendors  of  patents,  in  such  manner  as  it  shall  direct  by  general 
law,  uniform  as  to  the  class  upon  which  it  operates. 

Sec.  2.  The  property  of  the  state,  counties,  and  municipal  corpora- 
tions, both  real  and  personal,  shall  be  exempt  from  taxation,  and  such 
other  property  as  may  be  used  exclusively  for  agricultural  and  horticul- 
tural societies,  for  school,  religious,  cemetery,  and  charitable  purposes, 
may  be  exempted  from  taxation,  but  such  exemption  shall  be  only  by 
general  law.  In  the  assessment  of  real  estate  encumbered  by  public  ease- 
ment any  depreciation  occasioned  by  such  easement  may  be  deducted 
in  the  valuation'of  such  property.  The  legislature  may  provide  that  the 
increased  value  of  lands  by  reason  of  live  fences,  fruit  and  forest  trees 
grown  and  cultivated  thereon,  shall  not  be  taken  into  account  in  the 
assessment  thereof. 

Sec.  3.  (Redemption  from  tax  sales.) 

Sec.  4.  The  legislature  shall  have  no  power  to  release  or  discharge  any 
county,  city,  township,  town,  or  district  whatever,  or  the  inhabitants 
thereof,  or  any  corporation  or  the  property  therein,  from  their  or  its  pro- 
portionate share  of  taxes  to  be  levied  for  state  purposes,  or  due  any 
municipal  corporation,  nor  shall  commutation  for  such  taxes  be  author- 
ized in  any  form  whatever. 

Sec.  5.  County  authorities  shall  never  assess  taxes  the  aggregate  of 
which  shall  exceed  one  and  one-half  dollars  per  one  hundred  dollars  of 
valuation,  except  for  the  payment  of  indebtedness  existing  at  the  adop- 
tion of  this  constitution,  unless  authorized  by  a  vote  of  the  people  of  the 
county. 

Sec.  6.  The  legislature  may  vest  the  corporate  authorities  of  cities, 
towns,  and  villages  with  power  to  make  local  improvements  by  special 
assessment,  or  by  special  taxation  of  property  benefited.  For  all  other 
corporate  purposes  all  municipal  corporations  may  be  vested  with 
authority  to  assess  and  collect  taxes,  but  such  taxes  shall  be  uniform  in 
respect  to  persons  and  property  within  the  jurisdiction  of  the  body 
imposing  the  same. 

Sec.  7.  The  legislature  shall  not  impose  taxes  upon  municipal  corpora- 
tions, or  the  inhabitants  or  property  thereof,  for  corporate  purposes. 

1  This  compilation  is  derived  mainly  from  the  following  sources: 
The  compiled  statutes  of  the  state  of  Nebraska,  comprising  all  laws  of 
a  general  nature  in  force  on  July  1,  1899;  Guy  A.  Brown  and  Holand 
H.  Wheeler.     State  Journal  Company,  Lincoln,  Nebr.,  1899. 

Laws  of  Nebraska,  Twenty-seventh  session,  State  Journal  Comnanv 
Lincoln,  Nebr.,  1901.  " 


OFFICERS. 


The  officers  most  directly  concerned  with  taxation  are : 

(1)  Township  assessors,  in  counties  under  township  organization, 
elected  annually 

(2)  Tax  commissioner  in  Omaha  and  Lincoln,  who  is  city  assessor  and 
holds  office  for  a  term  of  two  years. 

(3)  County  assessor,  elected  for  two  years. 

(4)  County  treasurer,  elected  for  two  years. 

(5)  Town  board  of  review,  composedjof  the  mayor,  council,  and  assessor 
of  each  city. 

(6)  County  board  of  equalization,  composed  of  the  board  of  county 
commissioners,  or  in  counties  under  township  organization,  the  board  of 
supervisors. 

(7)  State  board  of  equalization,  composed  of  the  governor,  auditor  of 
public  accounts,  and  treasurer. 

State  Revenues, 
a.  taxes. 

I.    The  general  'property  tax. 
1.  Base — 

a.  The  property  included  and  exempt. — The  property 
included  is  grouped  under  the  following  classes : 

(1)  All  real  and  personal  property  in  the  state. 

Only  the  improvements  on  school  lands  and  the  value  of  the  interest 
of  the  purchaser  are  taxable  before  the  right  to  a  deed  has  become  abso- 
lute. 

(2)  All  moneys,  credits,  bonds,  and  stock,  and  other  investments,  the 
shares  of  stock  in  incorporated  companies  and  associations,  and  all 
other  personal  property,  including  property  in  transit  to  and  from  the 
state,  used,  held,  owned,  or  controlled  by  persons  residing  in  the  state; 
shares  of  capital  stock  of  banks  doing  business  in  the  state;  and  the 
capital  stock  of  companies  incorporated  under  the  laws  of  the  state. 

(3)  Exemptions, in  addition  to  public  property, are:  Property  used  for 
agricultural  and  horticultural  societies;  for  school,  religious,  cemetery, 
and  charitable  purposes;  also,  the  increased  value  of  lands  by  reason  of 
live  fences,  and  fruit  and  forest  trees  grown  and  cultivated  thereon. 

b.  Assessment. — The.state  and  county  assessment  roll 
is  made  up  from  the  assessments  of  the  several  precincts, 
townships,  cities,  and  villages,  transcribed  by  the  county 
clerk.  The  assessment  is  made  with  reference  to  the  1st 
day  of  April.  The  assessor  is  to  require  a  statement 
under  oath  of  personal  property  and  thereupon  assess 
the  fair  cash  value.  The  making  of  false  schedules  or 
the  refusal  to  list  property  is  punishable  by  a  fine  of  $10 
to  $100,  and  also  subject  to  prosecution  as  perjury. 
Real  estate  is  listed  by  owner  or  holder  and  valued  by 
the  assessor.  Land  and  the  improvements  thereon  are 
separately  assessed. 

Corporations  incorporated  under  the  laws  of  the  state,  except  insur- 
ance companies,  are  required  to  list  the  amount  of  capital  stock  in  addi- 
tion to  other  property.  The  amount  of  indebtedness,  except  for  current 
expenses,  and  the  assessed  value  of  real  and  personal  property,  are  to 
be  deducted  from  the  aggregate  value  of  its  shares  of  stock,  and  the 
remainder  is  listed  as  capital  stock.  The  real  and  personal  property 
are  assessed  the  same  as  that  of  individuals. 


TAXATION  AND  REVENUE  SYSTEMS— NEBRASKA. 


743 


Shareholders  of  state  and  national  banks  are  to  be  assessed  on  their 
stock  where  the  bank  is  located. 

Insurance  companies  doing  business  in  the  state  are  to  be  taxed  upon 
the  excess  of  premiums  received  over  losses  and  ordinary  expenses  in- 
curred within  the  state.  Insurance  companies  are  to  be  subject  to  no 
other  tax,  fees,  or  licenses  under  the  laws  of  this  state,  except  taxes  on 
real  estate  and  certain  fees  hereinafter  mentioned.  The  net  premiums 
are  assessed  and  taxed  as  personal  property  is  taxed. 

Railroad  and  telegraph  companies,  where  their  property  is  situated 
in  more  than  one  county,  are  assessed  by  the  state  board  of  equalization. 
But  machine  and  repair  shops,  office  buildings,  and  property  situated 
outside  the  right  of  way  and  depot  grounds  are  to  be  assessed  by  the 
precinct  assessors  of  the  counties  where  situated.  Railroad  property 
is  assessed  for  each  mile  of  line  or  main  track  and  apportioned  to  the 
counties  on  that  basis  as  personal  property.  The  county  clerk  appor- 
tions the  valuation  among  the  respective  precincts,  townships,  school 
districts,  road  districts,  cities,  and  villages  in  which  the  same  may  be. 

Sleeping  and  dining  cars  not  owned  by  railroads,  but  used  in  operating 
the  railway  are  assessed  by  the  state  board  of  equalization  on  the  average 
number  used  each  month  in  the  state;  the  assessed  value  of  the  cars  is 
to  bear  the  same  proportion  to  the  entire  value  thereof  that  the  num- 
ber of  miles  operated  in  the  state  bears  to  the  total  number  of  miles 
operated. 

In  making  up  the  amount  of  credits  which  any  person  is  required 
to  list,  he  is  entitled  to  deduct  from  the  gross  amount  of  credits  the 
amount  of  all  bona  fide  debts  owing  by  him,  except  insurance  premium 
notes,  unpaid  subscriptions  to  charity  or  the  capital  stock  of  any  com- 
pany, or  indebtedness  for  United  States  bonds  or  other  nontaxable 
property. 

c.  Equalization.- — A  meeting  of  the  assessors  of  the 
county  is  held  before  the  assessment  for  the  purpose  of 
consultation  in  regard  to  the  value  of  the  various  kinds 
and  classes  of  property  to  be  assessed. 

The  town  board,  in  counties  under  township  organi- 
zation, reviews  the  assessment  of  property  for  the  town. 

The  county  board  equalizes  between  the  several 
townships,  precincts,  or  districts  in  the  county,  but  is 
not  to  increase  or  reduce  the  aggregate  as  made  by  the 
assessors.  It  also  equalizes  between  individuals,  and 
hears  complaints  rejected  by  the  town  boards  in  coun- 
ties under  township  organization. 

The  state  board  of  equalization  examines  the  various 
county  assessments  and  equalizes  by  varying  the  rate 
of  taxation  in  the  different  counties  in  case  the  scale  of 
valuation  has  not  been  adjusted  to  a  reasonable  uni- 
formity by  the  different  assessors. 

2.  Rate — 

The  state  board  of  equalization  fixes  the  rate  of  the 
state  tax,  the  state  school  tax,  and  the  state  sinking 
fund  tax. 

The  rate  of  the  general  tax  is  to  be  not  more  than  5  mills  on  the 
dollar  of  valuation;  that  of  the  school  tax,  not  less  than  one-half  of 
1  mill  nor  more  than  li  mills;  and  that  of  the  sinking  fund  tax  not 
more  than  three-fourths  of  1  mill. 

3.  Collection — 

The  county  treasurer  is  ex  officio  tax  collector,  and 
all  taxes  levied  in  the  county  must  be  paid  at  his 
office.  Personal  taxes  unpaid  January  1  may  be  col- 
lected by  distress  and  sale  as  in  execution,  or  by  civil 
action.  Personal  taxes  are  delinquent  February  1, 
real  taxes  May  1,  and  both  draw  interest  at  10  per 


cent.  Taxes  are  a  lien  on  the  personal  property  as- 
sessed after  the  time  the  tax  books  are  received,  and 
taxes  on  real  estate  are  a  lien  on  such  property  from 
the  first  Monday  in  January.  Real  property  may  be 
sold  for  delinquent  taxes. 

II.  Poll  tax. 

There  is  no  state  poll  tax. 

III.  Inheritance  tax. 

Property  passing  by  will  or  by  the  intestate  laws  of 
the  state,  or  by  transfer  made  in  contemplation  of 
death,  to  the  father,  mother,  husband,   wife,    child, 
brother,  sister,  wife  or  widow  of  a  son,  husband  of  a 
daughter,  adopted  child,  or  lineal  descendant  is  subject 
to  a  tax  of  $1  on  every  $100  of  clear  market  value  in 
excess  of  $10,000  received  by  each  person;  passing  to 
any  uncle,  aunt,  niece,  nephew,  or  lineal  descendant  of 
the  same  is  subject  to  a  tax  of  $2  on  every  $100  in 
excess  of  $2,000  received  by  each  person;  passing  to 
other  collaterals  is  subject  to  a  tax  of  $2  on  every  $100 
over  $500;  passing  to  strangers  is  subject  to  the  follow- 
ing taxes:  $3  on  every  $100  for  an  estate  under  $10,000 
$4  on  every  $100  for  an  estate  of  $10,000  to  $20,000 
$5  on  every  $100  for  an  estate  of  $20,000  to  $50,000 
$6  on  every  $100  for  an  estate  over  $50,000. 
rV.   Corporation  taxes. 

Corporations  are  taxed  under  the  general  property 
tax. 

Domestic  insurance  companies  are  assessed  on  their  net  income 
as  personal  property. 

Foreign  insurance  companies  are  required  to  pay  2  per  cent  of  the 
gross  premiums  on  account  of  fife,  accident,  or  fire  policies,  or  of  insur- 
ance on  property  located  within  this  state  as  an  additional  license  fee, 
and  may  deduct  from  their  tax  bills  any  sum  over  $2  paid  as  license. 

V.  Business  taxes  and  licenses. 

Insurance  brokers,  $25  per  annum. 

B.    FEES. 

Secretary  of  state. — Filing  articles  of  incorporation,  domestic  or  for- 
eign, $10;  for  each  $1,000  over  $100,000,  10  cents;  increase  of  capital 
stock,  $5;  for  each  $1,000  increase,  10  cents;  amendments,  $5. 

Insurance  companies. — Domestic  companies — charter,  $50;  annual 
statement,  $20;  annual  license,  $1.  Foreign  companies — depositing 
charter,  etc.,  $100;  annual  statement,  $50;  life  and  accident,  statement, 
$100.  Mutual  companies — license,  $50;  annual  statement,  $10.  For- 
eign surety  companies — license,  $30;  annual  statement,  $10  to  $20. 
Domestic  surety — annual  statement,  $1. 

County  Revenues. 

a.   TAXES. 

I.    The  general  property  tax. 

1.  Base — 

The  property  included  and  the  assessment  and  equal- 
ization thereof  are  the  same  for  county  as  for  state 
taxes. 

2.  Rate — 

The  county  boards  levy  all  county,  township,  city, 
school  district,  precinct,  village,  and  other  taxes. 


744 


WEALTH,  DEBT,  AND  TAXATION. 


The  rate  for  county  purposes  is  not  to  exceed  $1.50  on  each  $100 
of  valuation  except  to  pay  indebtedness  existing  at  the  time  .of  the 
adoption  of  the  constitution,  unless  authorized  by  vote  of  the  people 
of  the  county,  and  the  limits  shall  be  as  follows:  In  counties  under 
township  organization,  for  county  revenue  and  poor,  9  mills  on  the 
dollar;  road,  5  mills;  bridges,  4  mills;  sinking  fund,  4  mills.  For  other 
counties  the  rates  are  the  same  except  that  for  the  sinking  fund,  which 
is  3  mills  on  the  dollar. 

3.   Collection — 

Same  as  for  state. 
II.  Poll  tax. 

Every  male  inhabitant  over  21  and  under  50  years  of 
age,  except  paupers,  idiots,  and  lunatics,  is  to  be  as- 
sessed for  a  labor  tax  of  $3,  to  be  paid  in  cash  or  com- 
muted in  labor  on  the  roads,  unless  so  assessed  in  cities 
or  incorporated  villages. 
Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There  are  no  inheritance  or  corporation  taxes  for 
the  county. 
V.  Business  taxes  and  licenses. 

Dealers  in  malt,  spirituous,  and  vinous  liquors,  residing  in  the  county 
but  not  within  the  limits  of  an  incorporated  city  or  village  nor  within 
2  miles  of  the  same,  may  be  licensed  by  the  county  board.  -The  amount 
of  license  fee  is  in  each  case  established  by  the  board  in  its  discretion, 
provided  it  be  not  less  than  $500  annually.  The  proceeds  of  liquor 
and  all  other  licenses  must  be  used  for  the  maintenance  of  public  schools. 

Peddlers  selling  outside  the  limits  of  a  city  or  town  within  any 
county  in  the  state  are  to  pay  an  annual  tax  of  $25;  in  vehicles,  one- 
horse,  $.50;  two-horse,  $75;  four-horse,  $100;  ferries,  $2  to  $500;  sale 
of  liquors  (not  in  cities  or  villages),  $500. 

Municipal  Revenues. 

a.   TAXES. 

I.  The  general  property  tax. 
1.  Base — 
The  property  included  and  the  method  of  equali- 
zation are  the  same  as  for  state  taxation.  If  ordered 
by  the  county  board,  separate  assessment  rolls  are  to 
be  made  for  property  within  the  corporate  limits  of 
cities,  towns,  and  villages,  except  when  such  munici- 
palities are  included  within  the  limits  of  any  township, 


and  except  also  in  cities  of  the  first  class.     In  metro- 
politan cities  the  assessment  refers  to  September  1. 

2.  Rate— 

The  county  boards  levy  such  taxes  as  are  required 
by  the  municipality.  The  amount  is  to  be  certified 
to  the  county  clerk  by  the  corporate  authorities,  and 
is  variously  limited  for  different  classes  of  cities. 

3.  Collection — 
Same  as  for  state. 

II.  Poll  tax. 

All  male  residents  of  the  corporation  between  21 
and  50  years  of  age  are  to  pay  a  labor  tax  of  $3  for 
the  repair  of  the  streets,  alleys,  and  highways  of  the 
city. 
Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There  are  no  inheritance  or  corporation  taxes  in 
municipalities. 
V.  Business  taxes  and  licenses. 

Cities  in  general  have  power  to  raise  revenue  by 
levying  an  occupation  tax  or  license  on  any  corpora- 
tion or  business  within  the  limits  of  the  city.  All 
scientific  and  literary  lectures  and  entertainments,  as 
well  as  concerts  given  by  citizens  of  the  city,  are  to  be 
exempt  from  such  taxation. 

Pawnbrokers — metropolitan  cities,  $100  per  year;  other  cities  (less 
than  80,000  inhabitants),  $50  per  year.  Liquors — in  cities  over  10,000, 
$1,000  per  year;  in  cities  under  10,000,  $500  per  year. 

School  Revenues. 

The  state  common  school  fund,  consisting  of  the 
proceeds  of  the  sale  of  school  lands  and  fines  and  for- 
feitures, is  to  be  increased  by  an  annual  levy  of  1J 
mills  on  $1  of  valuation,  to  be  distributed  to  the  coun- 
ties in  proportion  to  the  number  of  scholars.  All 
license  moneys  of  the  counties,  cities,  and  villages  are 
to  be  applied  to  the  support  of  the  common  schools. 

The  county  commissioners  levy  on  the  property  of 
school  districts  a  tax  not  to  exceed  25  mills,  and  in 
cities  of  the  first  class  of  over  25,000  one  not  to  exceed 
15  mills. 


NEVADA.1 


Nevada  derives  its  revenue  mainly  from  the  gen- 
eral property  tax.  There  is  in  addition  a  poll  tax  for 
state  and  county  purposes.  There  is  no  inheritance 
tax,  nor  are  there  special  corporation  taxes  except 
certain  license  fees  on  insurance  companies.  The 
counties  have  an  extensive  system  of  license  taxes  on 
brokers,  bankers,  merchants,  sheep  raising,  and  vari- 
ous lines  of  business  and  amusements  of  which  the  state 

1  This  compilation  is  derived  mainly  from  the  following  sources: 
Compiled  Laws  of  Nevada,   in  force   1861    to   1900;  compiled   by 
Henry  C.  Cutting.     Andrew  Mante,  superintendent  of  state  printing, 
Carson  City,  Nev.,  1900. 

Statutes  of  the  State  of  Nevada,  1901.     State  Printing  Office,  Car- 
son City,  1901. 


receives  the  proceeds  of  the  gambling  licenses  only. 
Municipalities  are  empowered  to  exact  licenses  from 
all  lines  of  business,  trade,  and  professions. 

CONSTITUTIONAL    PROVISIONS. 

ARTICLE    X. 

Sec.  1 .  The  legislature  shall  provide  by  law  for  a  uniform  and  equal 
rate  of  assessment  and  taxation,  and  shall  prescribe  such  regulations  as 
shall  secure  a  just  valuation  for  taxation  of  all  property,  real,  personal, 
and  possessory,  excepting  mines  and  mining  claims,  the  proceeds  of 
which  alone  shall  be  taxed,  and  also  excepting  such  property  as  may  be 
exempted  by  law  for  municipal,  educational,  literary,  scientific,  reli- 
gious, or  charitable  purposes. 


TAXATION  AND  REVENUE  SYSTEMS— NEVADA. 


745 


ARTICLE    IX. 

Sec.  1.  The  fiscal  year  shall  commence  on  the  first  day  of  January  in 
each  year. 

Sec.  2.  The  legislature  shall  provide  by  law  for  an  annual  tax  suffi- 
cient to  defray  the  estimated  expenses  of  the  state  for  each  fiscal  year, 
and  whenever  the  expenses  of  any  year  shall  exceed  the  income,  the  legis- 
lature shall  provide  for  levying  a  tax  sufficient,  with  other  sources  of 
income,  to  pay  the  deficiency,  as  well  as  the  estimated  expenses,  of  such 
ensuing  year  or  two  years. 

ARTICLE    XI. 

Sec.  6.  The  legislature  shall  provide  a  special  tax,  which  shall  not 
exceed  two  mills  on  the  dollar  of  all  taxable  property  in  the  state,  in 
addition  to  the  other  means  provided  for  the  support  and  maintenance 
of  the  state  university  and  common  schools. 

article  VIII. 

Sec.  2.  All  real  property  and  possessory  rights  to  the  same,  as  well  as 
personal  property  in  this  state  belonging  to  corporations  now  existing 
or  hereafter  created,  shall  be  subject  to  taxation  the  same  as  property  of 
individuals:  Provided,  That  the  property  of  corporations  formed  for 
municipal,  charitable,  religious,  or  educational  purposes  may  be  exempted 
by  law. 

article  II. 

Sec.  7.  The  legislature  shall  provide  by  law  for  the  payment  of  an 
annual  poll  tax  of  not  less  than  two  nor  exceeding  four  dollars  from  each 
male  person  resident  in  the  state  between  the  ages  of  twenty-one  and 
sixty  years  (uncivilized  American  Indians  excepted),  one-half  to  be 
applied  for  state  and  one-half  for  county  purposes,  and  the  legislature 
may,  in  its  discretion,  make  such  payment-  a  condition  to  the  right  of 
voting. 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  County  assessor,  elected  every  two  years.  The  sheriff  is  often 
ex  officio  assessor. 

(2)  Count;  treasurer, elected  every  two  years,  is  ex  officio  tax  collector. 

(3)  County  board  of  equalization,  composed  of  the  county  commis- 
sioners of  each  county  and  the  county  clerk. 

(4)  Sheriff,  elected  every  two  years,  ex  officio  collector  of  license 
taxes. 

State  Revenues. 

a.   TAXES. 

I.    The  general  property  tax. 
1.  Base — 
a.   The  property  included  and  exempt. — All  property 
of  every  kind  and  nature  within  this  state,  except  as 
exempted,  is  subject  to  taxation. 

(1)  "Real  estate"  includes  all  houses,  buildings,  fences,  ditches,  rail- 
roads, toll  roads  and  bridges,  and  other  structures,  erections,  and 
improvements  erected  upon  any  land,  whether  such  land  be  private 
or  public  property,  and  the  ownership  of,  claim  to,  or  possession  of  any 
lands  in  the  state. 

(2)  "Personal  property''  includes  all  chattels;  money  on  hand,  on 
deposit,  or  at  interest;  solvent  debts  when  the  amount  exceeds  the 
same  character  of  indebtedness  of  the  party  assessed;  all  locomotives, 
cars,  and  rolling  stock  used  in  operating  any  railroad  within  the  state; 
all  capital  employed  in  trade  and  commerce;  the  capital  stock  of  all  cor- 
porations, except  the  capital  stock  of  corporations  organized  for  mining 
purposes,  and  all  property  not  included  in  the  term  "real  estate." 

(3)  Exemptions  in  addition  to  public  property  are:  Mines  and  mining 
claims,  but  not  the  proceeds  of  mines;  churches  and  buildings  used  foi 


religious  worship,  with  their  furniture  and  equipments;  property  of  the 
Masons,  Odd  Fellows,  and  similar  charitable  organizations  or  benevolent 
societies  up  to  $5,000;  public  free  cemeteries:  property  up  to  $1,000  of 
widows  and  orphans  who  are  residents  of  the  state. 

h.  Assessment. — The  assessment  as  made  by  the 
county  assessors  is  the  basis  of  taxation  for  state, 
county,  city,  town,  school,  road,  and  other  revenue 
districts.  All  persons  are  to  make  statements  under 
oath  of  the  item  of  all  real  estate  and  personal  prop- 
erty. The  assessor  determines  the  true  cash  value 
which  is  construed  to  mean  the  amount  at  which  the 
property  would  be  taken  in  payment  of  a  just  debt  due 
from  a  solvent  debtor.  Penalties  for  neglect  or  refusal 
to  make  the  statement  are  the  loss  of  rights  before  the 
board  of  equalization  and  a  fine  of  $10  to  $500,  or  im- 
prisonment, or  both,  and  for  false  list,  not  less  than  one 
and  not  more  than  fourteen  years'  imprisonment, 

The  assessment  does  not  seem  to  refer  to  one  par- 
ticular date,  but  is  to  be  made  between  the  first  Mon- 
day in  March,  the  date  of  levy  of  taxes,  and  the  first 
Monday  in  September,  and  refers  to  the  time  when 
made.    • 

The  proceeds  of  mines  are  assessed  quarterly  as  personal  property. 
From  the  gross  yield  of  all  ores,  tailings,  borax,  soda,  or  mineral  bear- 
ing material  there  is  to  be  deducted  the  actual  cost  of  extracting  the 
ore  from  the  mine,  the  cost  of  transportation  to  the  place  of  reduc- 
tion, and  the  actual  cost  of  reduction  or  sale,  and  the  remainder  or 
net  proceeds  is  assessed  and  taxed  at  the  same  rate  ad  valorem  as 
other  property  is  taxed. 

The  act  of  March  13,  1903,  provides  that  the  assessors  of  the  several 
counties  shall  meet  at  the  capitol  and  establish  a  valuation  throughout 
the  state  of  all  railroads  and  rolling  stock,  telegraph  and  telephone  lines, 
electric  light  and  power  lines,  of  all  cattle  and  sheep,  and  other  kinds  of 
property  which  can  be  valued  and  assessed  more  uniformly  by  the 
assessors  acting  collectively. 

In  the  fiscal  year  of  1902  and  previously  thereto  the  railroad  assess- 
ment was  made  by  the  county  assessors  of  the  counties  in  which  the 
railroad  was  located  on  the  basis  of  a  statement  by  the  company.  The 
personal  property  of  the  railroad,  including  the  rolling  stock,  was 
assessed  separately  from  the  track,  station,  and  other  real  estate. 

c.  Equalization. — The  county  board  of  equaliza- 
tion equalizes  between  individuals  and  may  correct 
any  valuation,  but  no  reduction  is  to  be  made  where 
the  complainant  refused  to  make  his  list  under  oath. 
The  equalization  is  made  after  the  third  Monday  of 
September. 

There  is  no  state  board  of  equalization,   but  the 
county  assessors  of  the  several  counties  are  required 
to  meet  at  the  capitol  to  establish  throughout  the 
state  a  uniform  valuation  of  all  classes  of  property. 
2.  Rate— 

The  rate  of  state  tax  is  fixed  by  the  governor,  state 
comptroller,  and  attorney-general  to  meet  the  total 
appropriations  of  the  preceding  legislature  for  the  cur- 
rent year. 

A  tentative  rate  of  80  cents  on  $100  is  fixed  by 
statute.  The  assessor  collects  taxes  on  personalty 
unsecured  by  real  estate  at  this  rate,  and  in  case  of  a 
reduction  being  made  at  the  fixing  of  the  rate,  the  tax- 
payer is  entitled  to  a  refund  of  the  excess  paid. 


746 


WEALTH,  DEBT,  AND  TAXATION. 


The  annual  ad  valorem  tax  of  80  cents  on  each  $100  of  taxable  prop- 
erty is  levied  by  statute  for  state  purposes  and  extends  to  the  net  pro- 
ceeds of  mines.  The  tax  is  distributed  to  different  funds,  as  follows: 
55.04  cents  to  general  fund;  7.2  cents  to  territorial  interest  fund;  5.6 
cents  to  state  interest  and  sinking  fund;  9.6  mills  to  state  university 
and  sinking  fund;  4  cents  to  general  school  fund;  8  mills  to  university 
interest  and  sinking  fund,  1897,  No.  1;  8  mills  to  university  interest 
and  sinking  fund,  1897,  No.  2;  5.6  cents  to  contingent  university  fund. 

3.  Collection — 
Property  taxes  are  collected  by  the  county  treasurer 
except  that  taxes  on  personal  property  not  secured  by 
real  estate,  and  taxes  on  the  proceeds  of  mines  are 
collected  at  the  time  of  making  the  assessment  by  the 
assessor,  who  may  enforce  such  collection  by  seizure 
and  sale  at  public  auction.  Taxes  on  realty  and  on 
personalty  secured  by  real  estate  are  delinquent  on  the 
first  Monday  in  December,  and  10  per  cent  penalty  is 
then  added  and  collection  is  enforced  by  sale  or  by 
suit  in  case  the  taxes  exceed  $300.  Judgment  is  to 
be  entered  for  25  per  cent  in  addition  to  the  tax  and  a 
penalty  of  10  per  cent.  Real  estate  is  subject  to  lien 
for  taxes  due  thereon  and  for  taxes  on  the  owner's 
personal  property.  Taxes  on  real  and  personal  prop- 
erty may  be  paid  in  semiannual  installments,  one-half 
by  the  first  Monday  in  December  and  the  remaining 
half  prior  to  the  first  Monday  in  June.  But  if  the  first 
half  is  not  paid  by  the  first  Monday  in  December,  the 
whole  tax  is  due  and  the  penalty  of  10  per  cent  is 
added. 

II.  Poll  tax. 

Each  male  resident  of  the  state  over  21  and  under 
60  years  of  age  (uncivilized  American  Indians  ex- 
cepted) and  not  by  law  exempt  is  required  to  pay  an 
annual  poll  tax  of  $3  for  the  use  of  the  state  and 
county. 

The  county  assessor  is  ex  officio  poll  tax  collector. 
He  may  enforce  collection  by  seizure  of  personal  prop- 
erty and  sell  on  one  hour's  notice,  or  the  wages  may 
be  garnisheed  and  employers  held  responsible. 

Fifty  per  cent  of  the  poll  tax  goes  to  the  county 
and  50  per  cent  to  the  state. 

III.  Inheritance  tax. 

There  is  no  inheritance  tax. 

IV.  Corporation  taxes. 

The  property  of  corporations  is  subject  to  taxation 
the  same  as  that  of  individuals. 

Insurance  companies  pay  a  license  tax.     (See  next  division.) 

V.  Business  taxes  and  licenses. 

Gambling  license — first  month,  $100;  subsequent  months,  $75.  In- 
surance companies — fire,  life,  and  accident,  annually,  $100;  casualty  and 
surety,  annually,  $20. 

B.    FEES. 

Secretary  of  state. — Filing  certificate  of  incorporation,  $5;  appoint- 
ment of  agent,  certificate,  $5;  trade-marks,  filing,  $5;  commission,  no- 
taries public,  $10;  great  seal,  $5.  (These  fees  are  to  be  paid  into  the 
library  fund.) 

Controller. — Insurance  companies,  issuing  certificate,  $5;  physi- 
cian, application  to  practice,  $25;  dentists — registration,  $1;  exami- 
nation, $10. 


County  Revenues. 

A.    TAXES. 

I.  The  general  property  tax. 

1.  Base — 

The  property  included  and  the  assessment  and 
equalization  thereof  are  the  same  for  county  taxes  as 
for  state. 

2.  Rate— 

The  board  of  county  commissioners  in  each  county 
of  the  state  is  authorized  to  levy  annually  by  the  first 
Monday  in  March  an  ad  valorem  tax  for  county  pur- 
poses not  exceeding  the  sum  of  $2  on  each  $100  of  value 
of  taxable  property,  provided  that  the  total  tax  levy 
for  all  purposes  is  not  to  exceed  $5  on  each  $100,  and 
that  no  levy  in  excess  of  $1.50  is  to  be  levied  for 
county  purposes  unless  the  county  is  indebted,  when  a 
levy  may  be  made  to  discharge  such  indebtedness  and 
to  meet  the  expenses  of  the  current  year. 

If,  after  the  equalization  of  taxes  in  the  several 
counties,  it  appears  that  the  levy  previously  made  by 
the  board  of  county  commissioners  for  county  pur- 
poses will  result  in  either  an  excess  or  deficiency  of 
revenue,  then  the  rate  is  to  be  reduced  or  raised. 

3.  Collection — 
Same  as  for  state  taxes. 

II.  Poll  tax. 

Fifty  per  cent  of  the  state  poll  tax  goes  to  the 
county. 

Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There  are  no  county  inheritance  or  corporation  taxes. 

V.  Business  taxes  and  licenses. 

The  county  requires  the  following  license  taxes:  Billiard  tables,  public, 
$5  per  quarter;  bowling  alley,  public,  $10  per  quarter;  theater — for  less 
than  one  month,  $5  per  day;  for  one  month,  $20;  for  three  months,  $40; 
for  one  year,  $75  (same  fees  for  exhibitions  of  opera  or  concert  singers). 
Circus,  caravan,  menagerie,  $20  per  exhibition;  wire  dancers  and  other 
exhibitions,  $10  per  day;  pawnbrokers,  per  quarter,  $100;  intelligence 
office,  per  quarter,  $15;  brokers  and  savings  banks — first  class,  business 
$250,000  per  quarter,  $100  per  quarter;  second  class,  business  $200,000 
per  quarter,  $80  per  quarter:  third  class,  business  $100,000  per  quarter, 
$50  perquarter;  fourth  class,  business  $50,000  per  quarter,  $30  per  quar- 
ter; fifth  class,  business  less  than  $50,000  per  quarter,  $20  per  quarter 
(separate  license  for  each  establishment  in  the  county).  Bankers — first 
class,  $500,000  per  month,  $200  per  month;  second  class,  $300,000  per 
month,  $150  per  month ;  third  class,  $200,000  per  month,  $100  per  month ; 
fourth  class,  $100,000  per  month,  $75  per  month;  fifth  class,  $50,000  per 
month,  $.50  per  month;  sixth  class,  $25,000  per  month,  $25  per  month; 
seventh  class,  less  than  $25,000  per  month,  $12  per  month.  Common 
carrier  engaged  in  transmitting  gold  dust  or  bullion,  quarterly,  $150. 
Merchants  who  deal  in  goods,  wares,  or  merchandise,  wines,  and  dis- 
tilled liquors,  except  wines  and  distilled  liquors  produced  from  agricul- 
tural products  of  the  state,  when  sold  by  the  producer,  pay  quarterly 
license  fees  as  follows:  First  class,  average  monthly  sales  $100,000,  $50; 
second  class,  average  monthly  sales  $75,000,  $37.50;  third  class,  aver- 
age monthly  sales  $50,000,  $25;  fourth  class,  average  monthly  sales 
$40,000,  $20;  fifth  class,  average  monthly  sales  $30,000,  $15;  sixth 
class,  average  monthly  sales  $20,000,  $10;  seventh  class,  average 
monthly  sales  $10,000, $7.50;  eighth  class,  average  monthly  sales$  5,000, 
$5;  ninth  class,  average  monthly  sales  $1 ,000,  $3.75;  tenth  class,  average 
monthly  sales  less  than  $1,000,  $2.50.  Liquor  dealers,  who  sell  in  less 
quantities  than  1  quart,  $10  per  month;  liquor  dealers,  who  sell  in  less 


TAXATION  AND  REVENUE  SYSTEMS— NEW  HAMPSHIRE. 


747 


quantities  than  1  quart  1  mile  outside  city  limits,  $15  per  quarter  (one-half 
of  such  license  moneys  collected  within  corporate  limit  is  to  be  paid  into 
the  city  treasury).  Taverns,  hotels,  innkeepers,  restaurants,  public 
boarding  houses,  eating  stands,  and  all  public  lodging  houses  are 
licensed  as  follows:  First  class,  $3,000  per  month  business,  $45  per 
quarter;  second  class,  $1,000  per  month  business,  $15  per  quarter; 
third  class,  less  than  $1,000  per  month  business,  $7.50  per  quarter. 
Peddlers  and  auctioneers,  per  month,  $10;  peddlers,  wagon  license,  per 
month,  $25;  houses  of  amusement,  per  quarter,  $500.  Toll  roads  and 
bridges  pay  quarterly  2  per  cent  of  the  proceeds  on  gross  amount  of 
toll.  Insurance  broker,  quarterly  license,  $15;  itinerant  merchants  and 
traders,  monthly,  $5  to  $100;  cigarette  papers,  quarterly,  $15.  Sheep 
raising — first  class,  5,000  sheep  per  annum,  $250  per  annum;  every 
additional  1,000,  $50  per  annum;  second  class,  4,000  sheep,  $200  per 
annum;  third  class,  3,000  sheep,  $150  per  annum;  fourth  class,  2,000 
sheep,  $100  per  annum;  fifth  class,  1,500  sheep,  $75  per  annum;  sixth 
class,  1,000  sheep,  $50  per  annum;  seventh  class,  less  than  1,000  sheep, 
$25  per  annum.  Provisions  do  not  apply  to  persons  who  hold  land 
equal  to  1  acre  for  three  sheep,  other  than  by  lease.  The  sheriff  is  ex 
officio  collector  of  licenses  in  his  county  and  receives  as  commission — 
on  each  business  license,  6  per  cent;  on  each  sheep  license,  20  per 
cent  and  $2. 

Municipal  Revenues. 

a.   TAXES. 

I.    The  general  property  tax. 

1.  Base — 

The  property  included  and  the  assessment  and 
equalization  thereof  are  the  same  for  town  and  city 
purposes  as  for  state  taxation. 

2.  Rate— 

The  county  commissioners  have  power  to  levy  a  tax 
not  exceeding  1J  per  cent  per  annum  of  the  assessed 
value  of  the  town  or  city. 

In  Carson  City  and  Reno  these  powers  are  exercised  by  the  city 
board  of  trustees  and  the  city  council,  respectively.  In  Carson  City 
the  limits  are  one-fourth  and  three-fourths  of  1  per  cent;  in  Reno,  one- 
fourth  of  1  and  1  per  cent. 


3.  Collection — 
Collection  of  municipal  taxes  is  the  same  as  for  state. 

II,  III,  and  IV.  Poll  tax,  inheritance  tax,  and  corpo- 
ration taxes. 
There  are  no  municipal  poll,  inheritance,  or  special 

corporation  taxes. 

V.  Business  taxes  and  licenses. 

The  board  of  county  commissioners  has  power  to 

fix  term  of  license  in  towns  and  cities  in  the  various 

lines  of  business  and  amusements  conducted  in  the 

municipality  and  to  levy  a  tax  on  dogs. 

One-half  of  the  license  moneys  collected  on  county  licenses  for  the 
retail  of  liquors  in  less  quantities  than  1  quart  goes  to  the  municipality 
where  the  saloon  is  located. 

There  are  special  provisions  for  licensing  express  and  telegraph  com- 
panies, gas  and  electric  companies,  and  freight  line  and  equipment 
companies. 

School  Revenues. 

The  state  school  fund  is  composed  of  the  proceeds  of 
the  sale  of  school  lands,  all  fines  collected  under  the 
penal  laws  of  the  state,  2  per  cent  of  the  gross  proceeds 
of  all  toll  roads  and  bridges,  and  all  escheats.  The 
interest  of  this  fund  is  divided  semiannually  among 
the  several  counties  in  proportion  to  the  number  of 
school  children. 

The  state  school  tax  is  one-half  of  1  mill  on  the  dollar, 
and  5  per  cent  of  the  state  taxes  is  also  to  be  set  apart 
for  school  purposes. 

The  board  of  county  commissioners  is  to  levy  a 
county  school  tax  of  not  more  than  50  cents  nor  less 
than  15  cents  on  each  $100. 

School  districts  may  vote  to  impose  a  tax  for  addi- 
tional school  facilities  when  the  state  and  county 
money  to  which  any  district  is  entitled  is  not  sufficient 
to  keep  a  school  open  at  least  six  months. 


NEW  HAMPSHIRE. 


New  Hampshire  depends  mainly  upon  the  general 
property  tax  and  poll  tax  for  state,  county,  and 
municipal  revenues.  State  and  county  taxes  are 
apportioned  to  the  towns,  which  are  held  responsible 
for  assessment  and  collection,  except  taxes  on  railroad, 
telephone,  and  telegraph  companies,  which  are  assessed 
and  collected  primarily  by  state  authorities.  There 
are  some  special  corporation  taxes  on  insurance  com- 
panies and  savings  banks,  but  there  was  no  inheritance 
tax  until  1905,  when  an  inheritance  tax  law  was  passed. 

As  New  Hampshire  was  formerly  a  prohibition  state 
there  was  no  revenue  from  liquor  taxes,  but  in  1903  a 
liquor  license  law  was  passed. 

CONSTITUTIONAL    PROVISIONS. 

Art.  12.  Every  member  of  the  community  has  a  right  to  be  protected 
by  it  in  the  enjoyment  of  his  life,  liberty,  and  property.     He  is,  there- 


1  This  compilation  is  derived  mainly  from  "The  Public  Statutes  of  the 
State  of  New  Hampshire,"  and  "General  Laws  in  Force,  January  1, 
1901,"  compiled  and  edited  by  William  M.  Chase  and  Arthur  H.  Chase, 
Concord,  1901. 


fore,  bound  to  contribute  his  share  in  the  expense  of  such  protection  and 
to  yield  his  personal  service,  when  necessary,  or  an  equivalent. 

Art.  28.  No  subsidy,  charges,  tax,  impost,  or  duty  shall  be  estab- 
lished, laid  or  levied  without  the  consent  of  the  people  or  their  repre- 
sentatives in  the  legislature,  or  authority  derived  from  that  body. 

Art.  5.  Full  power  and  authority  are  hereby  given  and  granted  to  the 
general  court  *  *  *  to  impose  and  levy  proportional  and  reason- 
able assessments,  rates,  and  taxes  upon  all  the  inhabitants  of  and  resi- 
dents within  the  state,  and  upon  all  estates  within  the  same. 

Art.  6.  And  while  the  public  charges  of  government  shall  be  assessed 
on  polls  and  estates  in  the  manner  that  has  heretofore  been  practiced, 
in  order  that  such  assessments  may  be  made  with  equality,  there  shall  be 
a  valuation  of  the  estates  taken  anew  once  in  every  five  years  at  least, 
and  as  much  oftener  as  the  general  court  shall  order. 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  Selectmen  of  towns,  three  chosen  at  the  annual  meeting. 

(2)  Assessors,  also  elected  at  town  meeting,  who  constitute,  with  the 
selectmen,  a  joint  board  for  the  assessment  of  taxes. 

(3)  Town  collectors,  chosen  at  the  annual  town  meeting. 


748 


WEALTH,  DEBT,  AND  TAXATION. 


(4)  City  assessors,  chosen  in  each  ward  as  may  be  prescribed  by  city 
ordinances,  who  form  a  board  and  perform  all  duties  required  of  select- 
men and  assessors  of  towns. 

(5)  "County  convention,"  which  consists  of  the  representatives  of  the 
towns  of  the  counties. 

(6)  County  commissioners,  three  elected  biennially. 

(7)  The  state  board  of  equalization,  consisting  of  five  members 
appointed  by  the  supreme  court  and  commissioned  by  the  governor, 
and  acting  as  board  of  assessment  for  certain  classes  of  property. 

State  Revenues. 

a.   TAXES. 

I  and  II.    The  general  property  and  poll  tax. 

This  tax  is  essentially  a  town  tax,  as  the  state  levy 
is  apportioned  to  the  towns  and  raised  by  them  in  the 
same  manner  as  their  own  revenues.  The  poll  tax 
constitutes  an  integral  part  of  this  tax  and  can  not  be 
described  separately.  Polls  are  put  in  the  "invoice" 
upon  which  "all  taxes"  (sic)  are  assessed  at  50  cents 
each  and  taxable  property  at  50  cents  on  each  $100  of 
its  appraised  value.  This  gives  polls  a  quasi  property 
valuation  equal  to  $100. 
1.  Base — 

The  base  is  the  invoice  as  described  above. 

a.  The  property  included  and  exempt,  and  polls. — The 
classes  included  are  as  follows: 

The  property  included  is  all  property,  real  and  per- 
sonal, within  the  jurisdiction  of  the  state,  not  ex- 
pressly exempt. 

The  polls  included  are  all  males  from  21  to  7.0  years 
of  age  not  specially  exempt. 

(1)  "Real  estate,"  whether  improved  or  unimproved,  and  whether 
owned  by  residents  or  others,  is  liable  to  be  taxed,  and  includes  build- 
ings, factories,  machinery,  wharves,  ferries,  toll  bridges,  canals,  and 
aqueducts  for  sale  of  water;  also,  real  estate  of  railroad,  telegraph, 
and  telephone  companies  not  used  in  their  ordinary  business. 

(2)  ' '  Personal  estate ' '  for  purposes  of  taxation  includes  stocks,  except 
when  the  property  represented  by  the  stock  is  taxable  directly  to  the 
corporation;  the  surplus  capital  of  banks;  money  on  hand  or  loaned  at 
interest  more  than  the  owner  pays  interest  for;  stock  in  trade,  raw  mate- 
rials, and  manufactures;  vessels;  domestic  animals;  and  the  net  yearly 
income  of  ships  engaged  in  foreign  carrying  trade. 

(3)  Exemptions  are  as  follows : 

The  property  exempt  is:  All  public  property;  churches;  parsonages,  to 
$2,500;  educational  institutions;  undeveloped  mines;  cemeteries;  for 
ten  years  improvement's  caused  by  reclaiming  swamp  lands;  charitable 
associations;  horses,  asses,  and  mules,  under  18  months;  oxen  and  cows 
under  that  age;  sheep  and  hogs,  two  to  each  family,  and  olhers  under 
1  year;  stock  in  corporations  where  no  dividend  of  profit  is  to  be  made; 
manufacturing  establishments  for  ten  years  by  vote  of  the  town ;  mate- 
rials used  in  construction  of  ships;  money  loaned  to  towns;  and  railroads 
not  ten  years  in  use. 

The  polls  exempt  are:  Paupers  and  insane  persons  and  others  ex- 
empted by  law  or  legislative  contract  in  the  towns  where  resident  on 
April  1. 

b.  Assessment. — In  general,  there  is  but  one  com- 
plete assessment  roll  for  state,  county,  and  municipal 
taxes.  All  taxes,  except  taxes  on  railroad,  telegraph, 
and  telephone  lines,  and  on  certain  savings  banks  and 
fire  insurance  companies,  are  levied  upon  the  annual 


invoice  of  polls  and  property  in  the  towns.  The  taxes 
excepted  are  assessed  by  state  authorities. 

An  annual  invoice  of  taxable  property  as  of  April  1 
is  taken  in  towns  by  the  selectmen  and  in  cities  by  the 
assessors.  Blank  invoices,  which  must  be  made  out 
under  oath,  are  given  to  all  persons. 

The  taxpayer's  oath  does  not,  however,  cover  the 
valuations.  But  the  selectmen  appraise  all  taxable 
property  at  its  full  and  true  value  in  money  as  they 
would  appraise  the  same  in  payment  of  a  just  debt 
due  from  a  solvent  debtor  and  may  receive  evidence 
from  all  sources.  Real  estate  is  appraised  each  year. 
The  value  of  improved  and  of  unimproved  land  is  set 
down  separately. 

The  penalty  for  omitting  the  statement  or  for  a  false 
statement  is  doomage  of  four  times  as  much  as  the 
property  would  be  taxed  if  truly  returned. 

Although  a  new  invoice  is  made  every  year,  state 
taxes  are  apportioned  but  once  in  four  years  and  the 
apportionment  stands  in  the  interim. 

The  law  does  not  expressly  provide  for  mortgages, 
but  they  seem  to  come  under  the  provision  that  real 
and  personal  property  shall  be  taxed  to  the  person  who 
is  in  possession  and  in  actual  occupancy  thereof. 

In  appraising  the  value  of  shares  a  just  proportion 
of  the  value  of  any  estate  of  the  corporation  otherwise 
taxed  is  deducted.  Shares  are  assessed  to  the  owner 
where  he  resides,  if  in  this  state;  otherwise  at  the  prin- 
cipal place  of  business  of  the  corporation. 

All  shares  of  stocks  in  banks  (private,  state,  or  national)  are  taxed  to 
the  owners  in  the  towns  where  they  reside  at  the  value  as  shown  by  the 
capital,  surplus,  and  undivided  profits  after  deducting  the  real  estate. 
The  bank  pays  the  taxes  for  nonresident  stockholders,  which  are  secured 
to  the  bank  by  a  lien  on  the  shares  to  the  collector  where  the  bank  is 
located. 

The  following  property  is  assessed  by  the  state  board 
of  equalization:  That  of  railroad,  telegraph,  and 
telephone  companies,  except  that  part  of  their  prop- 
erty which  is  not  necessarily  used  in  the  business. 
There  are  no  special  rules  for  their  assessment,  but 
to  assist  the  board  in  arriving  at  the  value  of  the 
property  the  companies  must,  under  penalty  of  doom- 
age of  2  per  cent  of  the  property,  furnish  a  statement 
and  all  other  assistance  necessary. 

c.  Equalization. — Selectmen  may,  for  good  cause 
shown,  abate  any  tax  assessed  by  them  or  their  prede- 
cessors. If  they  refuse,  the  taxpayer  may  appeal  to 
the  supreme  court  of  the  county. 

The  state  board  of  equalization  equalizes  the  valua- 
tions between  the  several  towns  of  the  state  every 
fourth  year  (1902).  They  examine  the  inventories  of 
real  and  personal  estate,  obtain  from  the  county  com- 
missioners and  other  sources  all  available  information, 
and  place  the  valuations  on  a  uniform  basis,  so  that 
any  taxes  that  are  apportioned  among  the  towns  may 
be  equal  and  just  between  them. 


TAXATION  AND  REVENUE  SYSTEMS— NEW  HAMPSHIRE. 


749 


2.  Rate— 

State,  county,  and  town  taxes  are  levied  all  together 
by  the  selectmen  of  the  town.  State  taxes  are  appor- 
tioned by  the  state  board  of  equalization  to  the  several 
towns  on  the  basis  of  their  equalized  valuations. 
There  is  thus  no  universal  and  distinct  state  rate.  The 
apportionment  of  public  taxes,  according  to  the  valua- 
tions of  the  polls  and  ratable  estates  in  the  several 
towns,  is  made  every  fourth  year  (1899  to  1903,  etc). 
The  legislature  specifies  the  amount  and  time  of  pay- 
ment of  the  tax  for  each  of  two  fiscal  years. 

The  rate  on  railroad,  telegraph,  and  telephone  com- 
panies is  fixed  by  the  state  board  of  equalization. 
It  is  to  be  the  average  rate  levied  upon  property 
throughout  the  state,  ascertained  by  dividing  the  total 
amount  of  taxes  levied  by  the  total  appraised  value  of 
property  and  polls  entered  in  the  invoices. 

3.  Collection — 

In  general,  all  taxes,  state  and  local,  except  those  on 
railroads,  etc.,  are  collected  by  the  town  collectors. 
The  collector  may  distrain  on  goods  and  chattels,  and, 
if  necessary,  take  the  body.  The  lien  for  taxes  on  real 
estate  attaches  as  of  the  1st  day  of  June  after  the 
assessment. 

Any  town  which  neglects  to  choose  officers  for 
assessing  and  collecting  taxes  becomes  liable  to  an 
extent  for  state  and  county  taxes,  which  may  be  levied 
on  the  property  of  any  inhabitant.  Extents  may  also 
issue  against  any  officers  concerned  in  taxation  who  fail 
in  their  duties. 

Taxes  on  railroad,  telegraph,  and  telephone  com- 
panies are  paid  to  the  state  treasurer  in  the  first  instance. 
Those  on  railroads  are  apportioned  to  the  towns:  (1) 
To  those  in  which  the  railroad  is  located,  their  propor- 
tion being  one-fourth  of  the  tax;  (2)  to  those  in  which 
stock  was  owned  on  April  1,  their  shares  being  deter- 
mined by  the  proportion  of  the  number  of  shares  in 
each  to  the  whole  number  of  shares.  The  proportion 
due  on  shares  held  outside  the  state  is  reserved  for  the 
state. 

II.  Poll  tax. 

Combined  with  the  general  property  tax.  (See 
above.) 

III.  Inheritance  tax. 

There  was  no  inheritance  tax  until  1905. 

IV.  Corporation  taxes. 

Corporations  in  general  are  taxed  under  the  general 
property  tax,  as  described  above.  In  the  case  of  rail- 
road, telegraph,  and  telephone  companies  there  is  a 
special  procedure  in  making  the  assessment,  determin- 
ing the  rate,  and  dividing  the  proceeds. 

Savings  banks,  trust  companies,  and  building  and  loan  associations 
are  required  to  pay  a  tax  of  three-fourths  of  1  per  cent  upon  the 
amount  of  general  deposits  on  which  they  pay  interest,  after  deduct- 
ing the  value  of  all  their  real  estate  and  the  value  of  all  their  loans 
secured  by  mortgages  made  at  a  rate  not  exceeding  5  per  cent  per 
annum;  and  all  such  companies,  except  building  and  loan  associations, 


are,  in  addition,  to  pay  a  tax  of  1  per  cent  per  annum  on  special  depos- 
its or  capital  stock,  after  deducting  the  value  of  all  real  estate. 

Stock  fire  insurance  companies  of  this  state  are  taxed  annually  1  per 
cent  on  the  amount  of  their  paid-up  capital  on  April  1.  The  state 
treasurer  distributes  to  each  town  in  the  state  such  proportion  of 
three-fourths  of  the  tax  so  paid  as  the  shares  of  stock  owned  in  the 
town  bear  to  the  whole  number  of  shares.  The  state  has  what  is 
undistributed. 

Taxes  so  assessed  upon  savings  banks,  trust  companies,  loan  and 
banking  companies,  building  and  loan  associations,  and  upon  stock 
fire  insurance  companies  of  the  state  are  in  lieu  of  all  other  taxes 
against  the  corporations,  their  stockholders  and  depositors. 

Ever}-  foreign  fire  and  marine  insurance  company  is  required  to  pay 
to  the  state  treasurer  a  tax  of  2  per  cent  per  annum  upon  the  gross 
premiums  received  by  it  upon  business  done  in  the  state,  less  return 
premiums  and  reinsurance  in  authorized  companies. 

All  other  foreign  insurance  companies  are  to  pay  a  tax  of  1  per  cent 
per  annum  on  stock  premiums. 

The  expenses  of  the  railroad  commission  are  met  by  a  tax  levied 
on  the  gross  receipts  of  the  railroads. 

V.  Business  taxes  and  licenses. 

Peddlers — for  each  town,  annually,  $1 ;  for  each  town  of  1,000  inhab- 
itants or  less,  annually,  $5;  for  each  town  of  1,000  to  2,000,  annually, 
$8;  for  each  town  of  2,000  to  3,000,  annually,  $10;  for  each  1,000  in  ex- 
cess of  3,000,  annually,  $1 ;  or  general  license  for  entire  state,  annually, 
$50.  Itinerant  vendors,  annually,  $25;  salesmen  of  lightning  rods,  an- 
nually, $300;  manufacturers  of  fertilizers,  annually,  $50. 

B.    FEES. 

By  the  secretary  of  state. — Charter  fees  are  all  special  (incorporation 
by  special  act):  Savings  banks,  $100;  other  banks,  one-tenth  of  1 
per  cent  of  capital;  railroad  and  insurance  companies,  one-twentieth 
of  1  per  cent;  other  corporations,  $50;  amendments,  $25;  corpora- 
tions to  do  business  elsewhere,  according  to  capital,  $10  to  $200. 

By  the  insurance  commissioner. — Foreign  insurance  companies — for 
filing  charter,  $25;  filing  annual  statement,  $15;  filing  license,  $10; 
filing  renewal,  $5.  For  medical  examination  and  license — for  all  except 
matriculates  of  New  Hampshire  Medical  School,  $10;  for  matriculates 
of  the  New  Hampshire  Medical  School,  $5.  Beneficiary  societies,  $5. 
For  dentistry  certificate, $10;  forpharmacist  certificate,  $5;  for  assistant 
pharmacist  certificate,  $2;  for  embalmers — examination,  $5,  registra- 
tion, $1. 

County  Revenues. 

a.   TAXES. 

I  and  II.    The  general  property  and  poll  tax. 

1.  Base — 

The  property  and  polls  included  and  the  method  of 
assessment  and  of  equalization  are  the  same  as  those 
of  the  state  already  described. 

2.  Rate— 

The  county  treasurer  issues  his  warrant  to  the 
selectmen  of  the  several  towns  in  the  county  requiring 
them  to  assess,  collect,  and  pay  over  all  just  propor- 
tions of  all  taxes  granted  by  the  county  conventions. 

3.  Collection — 

Collection  from  the  town  is  enforced  by  the  county 
treasurer  as  by  the  state  treasurer  for  state  taxes. 
Ill,  IV,  and  V.  Inheritance  tax,  corporation  taxes,  and 

business  taxes  and  licenses. 

There  is  no  inheritance  tax  in  the  state  (see  above) 
and  there  are  no  corporation  taxes  or  business  taxes 
and  licenses  in  the  county. 


750 


WEALTH,  DEBT,  AND  TAXATION. 


C.    FINES    AND    PENALTIES. 


All  fines  and  forfeitures,  except  those  imposed  by  a 
police  court,  are  for  the  use  of  the  county  in  which 
the  offense  was  committed. 

Municipal  Revenues. 

A.    TAXES. 

I.  The  general  property  and  poll  tax. 

1.  Base — 

The  property  and  polls  included  and  the  method  of 
assessment  and  of  equalization  are  in  general  the  same 
as  for  state  taxes.  The  invoice  for  all  taxes  is  taken 
by  the  selectmen  of  the  towns  or  by  the  assessors  of 
the  cities  and  the  appraisal  made  by  them. 

2.  Rate — 

The  selectmen  assess  all  taxes  duly  voted  in  their 
towns  and  all  school  and  village  district  taxes  author- 
ized therein.  These  may  be  levied  in  one  assessment 
with  the  state  and  county  taxes.  Towns  may  also  raise 
money  at  town  meetings  for  municipal  purposes. 

II.  Poll  tax. 

This  is  incorporated  in  the  general  property  tax. 

III.  Inheritance  tax. 

There  is  no  such  tax.     (See  above.) 

IV.  Corporation  taxes. 
See  State  taxes. 


V.  Business  taxes  and  licenses. 

City  councils  or  the  selectmen  of  towns  may  license:  Public  shows 
and  exhibitions,  $1  to  $300  per  day  (if  in  a  hall,  $1  to  $50);  billiard 
tables  and  bowling  alleys,  $10  per  year;  same  in  summer  hotels,  $4 
(when  licensed  they  are  exempt  from  taxation);  dogs,  male,  $2;  dogs, 
female,  $5;  plumbers,  per  year,  $5;  peddlers,  per  year,  $5  to  $10; 
itinerant  vendors,  2  per  cent  of  value  of  goods  in  stock. 

School  Revenues. 

Each  town  constitutes  a  school  district.  The 
selectmen  may  assess  taxes  on  the  property  subject 
to  town  taxes,  but  may  make  a  new  invoice. 

The  selectmen  in  each  town  are  to  assess  annually 
upon  the  polls  and  ratable  estate  therein  a  sum  to  be 
computed  at  the  rate  of  $500  for  every  dollar  of  the 
public  taxes  apportioned  to  such  town.  Towns  may, 
however,  raise  more. 

Twenty-five  thousand  dollars  is  also  to  be  appro- 
priated annually  from  the  state  treasury  and  distrib- 
uted to  the  towns  in  direct  proportion  to  the  average 
attendance  of  scholars  and  in  inverse  proportion  to  the 
equalized  valuation  per  child. 

The  proceeds  of  all  taxes  collected  by  the  state 
upon  the  deposits  and  stock,  in  savings  banks  and  in 
similar  corporations,  of  persons  who  do  not  reside  in 
the  state  are  known  as  the  "literary  fund,"  and  the 
"fund"  so  constituted  is  distributed  among  the  towns 
in  proportion  to  the  number  of  scholars,  and  all  money 
arising  from  dog  license  fees,  which  is  not  paid  out 
for  damages  to  domestic  animals  by  dogs,  is  applied  to 
the  schools 


NEW  JERSEY. 


Special  note. — This  compilation  refers  to  the  fiscal  year  1902,  and 
therefore  does  not  include  the  provisions  of  the  revised  tax  law  of 
April  8,  1903,  which  took  effect  on  the  revenues  for  the  year  1904. 

New  Jersey  attempts  a  separation  of  taxes  for  state 
and  for  local  purposes.  The  state  obtains  its  revenue 
from  special  taxes  on  railroad  and  canal  corporations, 
the  franchise  tax  on  gross  receipts  and  capital  stock  of 
other  corporations,  the  collateral  inheritance  tax,  the 
poll  tax,  and  leases  of  riparian  lands. 

Taxes  on  real  and  personal  property  in  general  con- 
tribute only  to  counties  and  municipalities.  There  has 
been  no  state  tax  levied  on  real  and  personal  property 
since  1884.  Taxes  on  real  estate  of  railroads,  used  for 
railway  purposes  not  included  in  the  "main  stem,"  are 
apportioned  to  the  taxing  districts  in  which  the  prop- 
erty is  located. 

CONSTITUTIONAL  PROVISIONS. 

ARTICLE  IV. 

Sec.  7.  Par.  12.  Property  shall  be  assessed  for  taxes  under  general 
laws  and  by  uniform  rules,  according  to  its  true  value. 


OFFICERS. 


1  This  compilation  is  derived  mainly  from  the  following  sources: 
General  Statutes  of  New  Jersey,  published  by  virtue  of  an  act  of  the 

legislature  of  1894,  and  supplement  of  1895.     Linn  &  Co.,  Jersey  Citv, 

N.  J.,  1896. 

Session  Laws  of  the  Legislature  of  New  Jersey,  1895,  1896,  1897, 

1898,  1899,  1900,  1901:  Jersey  City,  N.  J. 


The  officers  most  directly  concerned  with  taxation 
are: 

(1)  Assessors  in  boroughs  of  the  first  class,  appointed  annually  by  the 
mayor  and  common  council. 

(2)  Township  assessor,  elected  for  three  years. 

(3)  Ward  assessors,  elected  annually. 

(4)  Boards  of  assessment  of  from  one  to  five  members  in  certain 
cities,  variously  appointed. 

(5)  Commissioners  of  assessment,  appointed  by  the  governor  in  de- 
fault of  local  officials. 

(6)  Commissioners  of  appeal  in  boroughs,  elected  for  three  years. 

(7)  State  board  of  taxation,  composed  of  four  members  appointed  by 
the  governor,  no  more  than  two  to  be  of  the  same  political  party. 

(8)  County  board  of  equalization,  appointed  by  the  judge  of  common 
pleas  for  the  county  for  three  years.  This  board  supersedes  the  county 
board  of  assessors. 

State  Revenues. 

a.   TAXES. 

I.  The  general  property  tax. 
1.  Base — 
a.  The  property  included  and  exempt.1 — Real  and  per- 
sonal property  generally  is  relieved  from  state  taxes 
with  the  exception  of  those  for  school  purposes.  (For 
details  of  base,  assessment,  and  collection,  see  County 
revenues  a.) 


TAXATION  AND  REVENUE  SYSTEMS— NEW  JERSEY. 


751 


The  state  may,  for  purposes  other  than  support  of 
schools,  have  recourse  to  the  property  tax  by  appor- 
tioning amounts  to  be  raised  by  the  counties,  which 
in  turn  apportion  their  quota  to  townships  and 
local  taxing  districts.  "Taxing  district"  designates 
any  municipality,  city,  township,  borough,  or  village 
having  power  to  assess  and  levy  taxes. 

The  largest  source  of  state  revenue  is  the  taxation 
through  state  assessors  of  property  of  railroad  and 
canal  companies.  This  tax  is  laid  only  on  property 
used  in  operation  of  the  road  and  is  in  part  distributed 
to  the  local  taxing  districts. 

Every  railroad  and  canal  company  is  assessed  on  property  used  in 
operation  of  the  road,  by  a  state  board  of  assessors.  The  franchise 
is  considered  an  element  of  such  property.  The  courts  have  held  that 
the  valuation  may  be  based  on  the  aggregate  market  value  of  stocks 
and  bonds  less  debts  due  creditors  within  the  state.  The  stocks  and 
bonds  in  the  hands  of  the  holders  are  not  taxed.  The  railroad  is  re- 
quired to  make  a  statement  to  the  board  of  its  general  property,  under 
penalty  not  to  exceed  $10,000. 

The  same  deduction  is  allowed  for  mortgages  and  other  debts  as  in  the 
case  of  individuals. 

Property  not  used  in  operation  of  the  railroad  is  assessed  and  taxed 
locally  as  other  property. 

2.  Rate— 

The  rate  for  general  state  purposes  is  prescribed  by 
statute  for  railroad  and  canal  companies  as  one-half  of 
1  per  cent  upon  each  dollar  of  valuation.  Companies 
must  also  pay  a  tax  at  the  local  rate  for  county  and 
municipal  purposes  (but  not  to  exceed  1  per  cent)  upon 
real  property  other  than  the  "main  stem"  which  in- 
cludes the  roadbed  not  exceeding  100  feet  in  width, 
with  its  rails  and  sleepers  and  depot  buildings,  in  the 
several  taxing  districts.  This  goes  to  the  districts 
through  which  the  railroad  passes,  according  to  the 
amount  derived  therein. 

3.  Collection — 

The  tax  on  property  used  in  the  operation  of  a  rail- 
road or  canal  is  due  and  payable  into  the  state  treasury 
between  November  1  and  February  1.  But  that  part 
of  the  tax  applicable  to  general  state  uses  may  be  paid  in 
four  installments,  if  the  portion  applicable  to  county  and 
local  purposes  shall  be  paid  by  February  1.  If  pay- 
ment is  defaulted  for  ten  days,  the  property  of  the  road 
may  be  sold  as  upon  execution  upon  order  of  the 
supreme  court.  Taxes  are  a  lien  upon  property  and 
franchise  after  November  1. 

II.  Poll  tax. 

A  poll  tax  not  exceeding  $1  is  to  be  assessed  upon 
every  male  inhabitant  of  the  state  over  21  years  of  age, 
except  firemen,  volunteers  and  sailors  in  the  army  or 
navy  of  the  United  States,  paupers,  idiots,  and  insane 
persons.  The  tax  is  collected  solely  for  local  school 
and  road  purposes. 

III.  Inheritance  tax. 

All  property  that  is  situated  in  the  state  and  all 
property  of  any  decedent  who  was  a  resident  of  the 
state  which  passes  by  will,  descent,  or  transfer  in- 
tended to  take  effect  on   death,  to  any  person  other 


than  the  father,  mother,  husband,  wife,  child,  brother, 
sister,  son-in-law  or  daughter-in-law,  or  lineal  descend- 
ant, or  to  any  corporation,  excepting  churches,  hos- 
pitals, orphan  asylums,  public  libraries,  and  all  relig- 
ious, benevolent,  and  charitable  institutions,  shall  be 
subject  to  a  tax  of  $5  on  every  $100  of  clear  value, 
which  is  to  be  paid  to  the  treasurer  of  the  state. 
Estates  of  less  value  than  $500  are  not  subject  to  this 
duty  or  tax. 

IV.   Corporation  taxes. 

The  taxation  of  corporations,  foreign  and  domestic, 
includes  both  a  state  and  a  local  tax. 

Domestic  corporations,  other  than  those  taxed  on 
•the  basis  of  gross  receipts,  pay  a  franchise  tax  on  the 
basis  of  capital  stock.  The  tax  is  for  the  privilege  of 
transacting  business  in  the  state  and  not  one  upon  the 
corporate  property  or  business,  and  may  be  collected 
no  matter  how  the  property  of  the  company  may  be 
invested  or  where  it  may  be  situated.  It  has  been 
called  a  "poll  tax  levied  upon  domestic  corporations 
for  the  right  to  be." 

A  foreign  corporation  pays  5  per  cent  upon  the  amount  of  gross 
receipts  from  business  in  the  state,  unless  there  is  a  lower  rate  in  its 
own  state  on  New  Jersey  corporations. 

Franchise  tax  on  gross  receipts. — Every  telegraph,  telephone,  cable,  or 
electric  light  company;  every  express,  gas,  or  palace,  parlor,  or  sleeping 
car  company;  every  oil  or  pipe-line  company;  every  domestic  life  insur- 
ance company;  every  fire,  marine,  live  stock,  casualty,  or  accident  insur- 
ance company  doing  business  in  this  state,  except  mutual  fire  insurance 
companies,  pays  an  annual  franchise  tax  for  the  use  of  the  state.  These 
corporations  are  required  to  make  an  annual  report  to  the  state  board 
of  assessors  of  gross  receipts  within  the  state  by  the  first  Tuesday  in 
May. 

The  rate  of  tax  in  gross  receipts  of  corporations  is  as  follows:  Tele- 
graph, telephone,  cable,  and  express  companies,  2  per  cent;  gas  and 
electric  light  companies,  one-half  of  1  per  cent  (also  5  per  cent  upon 
dividends  over  4  per  cent) ;  oil  and  pipe-line  companies,  eight-tenths  of 
1  per  cent;  insurance  companies,  other  than  life,  1  per  cent;  life  insur- 
ance companies  (domestic),  thirty-five  one-hundredths  of  1  per  cent 
(also  1  per  cent  upon  its  surplus) ;  parlor,  palace,  and  sleeping  car 
companies,  2  per  cent;  surety  companies,  2  per  cent. 

Franchise  tax  on  capital  slock. — All  domestic  corporations,  other  than 
those  paying  a  state  franchise  tax  based  on  gross  receipts,  are  required 
to  pay  an  annual  license  fee  or  franchise  tax:  On  capital  stock  up  to 
$3,000,000,  one-tenth  of  1  per  cent;  on  capital  stock  $3,000,000  to 
$5,000,000,  one-twentieth  of  1  per  cent;  on  capital  stock  of  $5,000,000 
and  over,  $30  per  million. 

This  tax  is  laid  upon  a  statement  of  capital  stock  to  the  state  board 
of  assessors. 

The  tax  on  capital  stock  does  not  apply  to  railway,  canal,  banking, 
savings  bank,  cemetery,  or  religious  corporations;  nor  to  those  purely 
charitable  or  educational;  nor  to  manufacturing  or  mining  corpora- 
tions 50  per  cent  of  whose  capital  is  invested  in  this  state;  otherwise, 
the  assessed  value  of  property  so  used  is  deducted  from  the  amount  of 
its  capital  stock  in  the  computation  of  the  tax. 

Special  franchise  tax. — All  corporations  or  companies  using  public 
streets,  highways,  or  roads  (except  railroads  and  canals)  are  required 
to  pay  a  tax  of  2  per  cent  on  their  gross  receipts,  in  addition  to  the  local 
tax  on  their  property.  Pipeline  companies  are  subject  to  this  tax  on 
receipts  from  business  in  the  state.  A  forfeit  not  exceeding  $5,000  is 
prescribed  for  failure  to  make  a  statement  of  gross  receipts  to  the  state 
board  of  assessors.  These  corporations  are  withdrawn  from  taxation 
under  the  general  state  franchise  tax.  These  special  franchise  taxes 
on  corporations  exercising  municipal  franchises  are  collectible  in  the 
local  districts  in  proportion  to  the  value  of  the  property  located  therein. 


752 


WEALTH,  DEBT,  AND  TAXATION. 


V.  Business  taxes  and  licenses. 

Insurance  agent,  foreign  company,  $20;  itinerant  vendors,  $25;  fire, 
life,  marine,  and  live  stock  insurance  companies,  $50. 

B.    FEES. 

To  the  secretary  of  state. — Incorporation  fee,  20  cents  for  each 
$1,000  of  capital  stock  authorized,  $25  minimum  tax;  increase  of 
stock,  20  cents  per  $1,000,  $20  minimum  tax.  Consolidation  and 
merger  of  corporations,  20  cents  for  each  $1,000  authorized  beyond 
capital  of  corporations  consolidated,  $20  minimum.  Extension  of  cor- 
porate existence,  same  as  organization;  dissolution,  change  of  name, 
increase  of  capital  stock,  etc.,  $20;  foreign  corporations,  privilege  tax, 
$10;  foreign  insurance  company,  $20:  annual  statement  of  insurance 
companies,  $20. 

County  Revenues. 

A.    TAXES. 

I.    The  general  property  tax. 
1.  Base — 

a.  The  property  included  and  exempt. — All  the  real 
and  personal  estate  within  the  state  unless  specially 
exempt  is  liable  to  taxation: 

(1)  "Real  estate"  includes  all  lands  and  all  waterpower  thereon;  all 
buildings  and  trees;  all  mines,  quarries,  peat  and  marl  beds;  and  all 
fisheries. 

(2)  "Personal  estate  "  includes  all  goods  and  chattels,  debts,  and  pub- 
lic and  corporate  stock,  whether  said  personal  estate  be  within  or  with- 
out the  state. 

(3)  Exemptions,  in  addition  to  public  property ,  are :  Charitable  insti- 
tutions; endowment  funds  of  religious  societies;  armory  associations; 
stocks  and  other  personal  estate  owned  by  citizens  of  the  state  situated 
outside  of  the  state  upon  which  taxes  have  been  actually  assessed  for 
the  preceding  year;  colleges,  academies,  public  libraries,  schoolhouses, 
hospitals,  churches,  parsonages,  and  insane  asylums;  stock  in  corpora- 
tions which  by  charter  are  exempt;  stock  which  is  taxable  to  the  cor- 
poration; pews;  and  cemeteries;  firemen  and  discharged  soldiers  and 
sailors,  from  poll  and  from  property  taxes  to  the  amount  of  $500;  par- 
sonages, up  to  $5,000;  bonds  of  the  state  and  its  public  corporations 
and  of  biological  and  fish  stations;  also  savings  banks'  deposits. 

b.  Assessment. — The  assessment  is  to  be  made  by 
the  assessors  of  every  towrship  or  ward  annually  be- 
tween the  20th  of  May  and  the  20th  of  August.  Every 
inhabitant  is  to  render  a  true  account  of  his  property, 
under  penalty  of  double  assessment,  and  is  to  answer 
under  oath  when  required  by  the  assessor.  Property 
is  to  be  assessed  at  its  full  and  actual  value. 

No  mortgage  on  real  or  personal  property,  or  the  debt  secured  by 
such  mortgage,  is  to  be  assessed  for  taxation  unless  a  deduction  has 
been  claimed  therefor  by  the  owner  of  the  mortgaged  property. 

By  the  "five  counties  act"  it  is  made  lawful  for  mortgagors  in  the 
counties  of  Hudson,  Essex,  Union,  Bergen,  and  Passaic  (contiguous  to 
New  York  city)  to  make  agreements  with  the  mortgagees  of  lands 
therein  not  to  apply  for  any  deductions,  by  reason  of  any  mortgage, 
from  the  taxable  value  of  the  lands.  Where  deductions  are  allowed, 
the  mortgagees  are  assessable  for  taxation. 

The  local  tax  on  real  and  personal  property  of  corporations  has 
not  been  superseded  by  the  state  franchise  taxes.  All  real  and  per- 
sona] property  is  to  be  taxed  the  same  as  that  of  an  individual,  ex- 
cept property  of  railway,  turnpike,  insurance,  canal,  or  banking  corpo- 
rations, savings  banks,  cemeteries,  church  property,  or  purely  charita- 
ble or  educational  associations.  Corporations  are  permitted  deduc- 
tions for  debt  the  same  as  individuals. 


Life  insurance  companies  are  to  be  assessed  on  the  full  amount  of 
their  property  and  valuable  assets  after  deducting  debts  and  liabilities, 
on  the  basis  of  a  statement  as  of  January  1.  The  amount  of  tax  on 
the  Mutual  Benefit  Life  of  Newark  is  not  to  be  less  than  $5,000. 

The  stock  of  corporations,  except  banks,  is  not  assessed  in  the  hands 
of  the  individual  holders,  nor  their  bonds,  except  when  deductions  have 
been  allowed  on  their  account  to  the  corporations. 

Bank  stock,  state  or  national,  is  assessed  to  the  shareholder  where  he 
resides.  The  bank  is  respopsible  for  nonresident  stock.  Real  estate 
is  assessed  to  the  bank  and  deducted  from  the  assets  of  the  bank  in 
estimating  the  value  of  the  shares  of  stock.  The  bank  is  not  made 
responsible  for  collection  of  taxes  on  shares  of  resident  holders. 

From  the  valuation  of  real  and  personal  estate  may  be  deducted  any 
debts  owing  to  creditors  within  the  state,  upon  a  written  statement 
under  oath  thereof.  No  deduction  is  to  be  made  from  the  taxable 
value  of  real  estate  of  indebtedness  to  any  state  or  national  bank,  but 
such  deduction  may  be  made  from  personalty. 

c.  Equalization. — The  assessment  of  the  local  assess- 
ors is  revised  and  equalized  by  township  committees  of 
each  township,  by  borough  councils,  and  by  the  com- 
mon councils  of  cities  and  villages.  Commissioners  of 
appeal  in  and  for  every  township  hear  appeals. 

The  county  board  of  equalization  equalizes  between 
the  taxing  districts  of  the  county. 

The  state  board  of  taxation  hears  and  determines 
the  appeals  of  individuals,  and  equalizes  also  between 
the  taxing  districts  by  correcting  the  determination 
of  the  county  board  of  equalization. 

2.  Rate— 

The  county  commissioners  of  equalization  fix  the 
quota  of  taxes  to  be  collected  in  each  taxing  district  in 
proportion  to  the  net  value  of  taxable  real  and  per- 
sonal property  therein. 

3.  Collection — 

Taxes  as  a  whole  or  in  installments  of  one-fourth 
are  collected  by  the  township,  town,  or  borough  col- 
lector, who  is  to  give  notice  on  October  1  of  the  time 
of  payment.  On  December  20  a  list  of  delinquents  is 
to  be  returned  to  some  justice  of  the  peace,  who  is  to 
issue  tax  warrants  requiring  the  constable  to  make  dis- 
traint and  sale  of  goods  and  chattels,  or  to  take  the 
body  of  the  delinquent.  The  township  collector  is  to 
pay  over  to  the  county  collector  by  December  22,  and 
the  county  treasurers  to  the  treasurer  of  the  state  by 
January  20  in  each  year.  Taxes  assessed  on  real  prop- 
erty are  a  lien  for  two  years  after  December  20. 
II.  Poll  tax. 

No  poll  tax  is  to  be  assessed  upon  any  inhabitant  of 
any  county  of  the  first  class  for  county  purposes. 

Poll  taxes  in  other  counties  are  not  to  exceed  $1  for 
any  purpose  whatever.    This  limitation  with  other  laws 
practically  restricts  the  tax  for  municipal  purposes. 
Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There  are  no  county  inheritance  or  corporation  taxes. 

V.  Business  taxes  and  licenses. 

Pawnbrokers,  $50  per  year;  peddlers,  $20  per  year;  public  shows, 
$10  to  $100  per  day. 


TAXATION  AND  REVENUE  SYSTEMS— NEW  MEXICO. 


r53 


Municipal  Revenues. 


a.   TAXES. 


I.  The  general  property  tax. 

1.  Base — 

The  property  included  and  the  assessment  and 
equalization  thereof  are  the  same  for  municipal  as  for 
state  taxes.  Manufacturing  corporations,  companies, 
and  individual  enterprises,  employing  labor  within  the 
limits  of  boroughs,  can,  by  act  of  common  council,  be 
exempted  from  municipal  taxation,  either  wholly  or  in 
part,  for  not  more  than  five  years. 

2.  Rate— 

The  common  councils  of  cities  may  order  for  general 
city  purposes,  exclusive  of  school,  library,  poor,  fire, 
and  state  and  county  taxes,  any  sum  not  exceeding 
one-half  of  1  per  cent  of  the  assessed  valuation.  Cities 
of  a  population  of  from  15,000  to  100,000  may  levy  1J 
per  cent. 

3.  Collection —  , 
Same  as  for  county  taxes. 

II.  Poll  tax. 

Poll  taxes  for  school  and  road  purposes  in  cities,  bor- 
oughs, and  townships  of  the  state  are  not  to  exceed  SI. 
Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There  are  no  municipal  inheritance  or  special  cor- 
poration taxes. 

V.  Business  taxes  and  licenses. 

The  common  councils  or  ljoards  of  aldermen  have  power  to  license 
junk  shops,  bill  boards,  bill  posters,  roller  skating  rinks,  omnibuses,  car- 


riages and  other  vehicles,  peddlers,  pawnbrokers,  auctioneers,  milk 
dealers,  dogs,  street  musicians,  shows,  and  theatrical  performances. 
Circus — admission  25  cents,  not  to  exceed  $500  per  day;  admission  10 
to  25  cents,  not  to  exceed  $100  per  week.  Concerts,  admission  50  cents 
or  more,  $25  per  concert;  theater,  $350  per  year. 

The  board  of  excise  commissioners  has  the  sole  power  in  towns  and 
cities  of  granting  retail  liquor  licenses.  Liquors — cities  of  first  class, 
beer  bottling,  $75;  cities  of  second  class,  beer  bottling,  $50;  sale  of 
liquors,  social  clubs,  $250. 

School  Revenues.    . 

Riparian  funds  received  from  the  rental  and  sale  of 
lands  under  water  are  appropriated  as  part  of  the 
school  fund  for  the  support  of  free  public  schools. 

A  state  school  tax  equal  to  $5  for  each  child  in  the 
state  between  5  and  18  years  of  age  is  to  be  levied 
and  collected  on  the  county  assessments.  It  is  the 
duty  of  the  comptroller  to  apportion  the  tax  among  the 
several  counties  in  proportion  to  the  amount  of  tax- 
able property  therein.  The  tax  is  then  apportioned 
among  townships  and  wards  by  the  assessors.  State 
school  moneys  are  apportioned  among  the  school 
districts. 

School  districts  may  raise  additional  moneys  by  tax 
grants  of  rights  to  occupy  land  under  the  waters  of  the 
bay  of  New  York  and  the  Hudson  river,  which  grants 
are  made  by  a  board  of  commissioners.  The  proceeds 
of  the  sales  and  rentals  of  said  lands  are  to  be  applied  as 
the  legislature  may  direct,  then  to  the  state  debt  and 
school  fund. 


NEW  MEXICO.1 


New  Mexico  draws  her  revenues  mainly  from  the 
general  property  tax.  There  are  certain  special  cor- 
poration taxes  on  car  and  express  companies,  and 
on  foreign  corporations  engaged  in  producing,  refin- 
ing, and  selling  petroleum,  or  coal  oil.  There  is  no 
inheritance  tax,  but  there  is  a  system  of  business  taxes 
and  licenses. 

ORGANIC    LAW. 

By  the  organic  act  establishing  the  territory  of  New  Mexico  the  legis- 
lative power  is  vested  in  the  governor  and  legislative  assembly  (sec.  5). 

Sec.  7.  The  legislative  power  of  the  territory  shall  extend  to  all  right- 
ful subjects  of  legislation  consistent  with  the  Constitution  of  the  United 
States  and  the  provisions  of  this  act;  *  *  *  no  tax  shall  be  imposed 
upon  the  property  of  the  United  States;  nor  shall  the  lands  or  other 
property  of  nonresidents  be  taxed  higher  than  the  lands  or  other  prop- 
erty of  residents. 

CHAPTER   DCCCXVIII. 

The  legislatures  of  the  territories  of  the  United  States  shall  not  pass 
local  or  special  laws,  *  *  *  for  the  assessment  and  collection  of 
taxes  for  territorial,  county,  township,  or  road  purposes. 


OFFICERS. 


'This  compilation  is  derived  mainly  from  the  following  sources: 
Compiled  Laws  of  New  Mexico,  1897:  Santa  Fe,  N.  Mex.,  1897. 
Laws  of  New  Mexico,  1899:  Santa  Fe,  N.  Mex.,  1899. 
Laws  of  New  Mexico,  1901:  Albuauerque,  N.  Mex.,  1901. 

932—07 48 


The  officers  most  directly  concerned  with  taxation 
are: 

(1)  County  assessor,  elected  every  two  years. 

(2)  County  collector;  the  county  treasurer  is  ex  officio  tax  collector. 

(3)  County  board  of  equalization,  composed  of  the  county  commis- 
sioners. 

(4)  Territorial  board  of  equalization,  composed  of  one  taxpayer 
appointed  by  the  governor  from  each  of  the  five  judicial  districts. 

Territorial  Revenues. 

a.  taxes. 

I.    The  general  property  tax. 
1.  Base — 
a.    The  property  included  and  exempt. — All  property 
in  the  territory,  not  exempt  by  law,  is  subject  to  taxa- 
tion. 

(1)  "Real  estate"  includes  all  lands  within  the  territory  to  which 
title  or  right  to  title  has  been  acquired,  all  mines,  minerals,  and  quarries, 
and  all  rights  and  privileges  appertaining  to  land,  and  improvements 
which  include  all  buildings,  structures,  fixtures,  and  fences  affixed  to 
land,  whether  title  to  the  land  has  been  acquired  or  not. 


754 


WEALTH,  DEBT,  AND  TAXATION. 


(2)  "Personal  property"  includes  everything  subject  to  ownership 
not  included  within  the  terra  "real  estate." 

(3)  Exemptions,  in  addition  to  public  property,  are:  Public  libraries; 
cemeteries;  property  of  literary,  scientific,  benevolent,  agricultural,  and 
religious  institutions  and  societies;  a  family  homestead,  to  the  value 
of  $200,  or  other  property  to  make  up  an  exemption  of  $200;  mines  and 
mining  claims  bearing  gold,  silver,  and  other  precious  metals  (but  not 
the  net  product  and  surface  improvements),  for  a  period  of  ten  years 
from  the  date  of  the  location;  irrigating  ditches,  canals,  and  flumes 
belonging  to  communities  and  used  on  a  mutual  basis;  and  all  other 
ditches,  etc.,  for  irrigating  purposes,  for  a  period  of  six  years  after 
completion;  factories  or  plants  for  manufacture  of  beet  sugar,  for  six 
years;  factories,  mills,  smelters,  and  reduction  works,  for  six  years  from 
1898;  tanning  factories,  for  six  years;  and  railroads,  for  six  years  after 
the  completion  of  the  road  and  branches. 

No  tax  is  to  be  levied  on  any  mining  claim  located  under  laws  of  the 
United  States,  or  upon  any  shaft  or  working  therein  until  after  a  patent 
has  been  issued  by  the  United  States  and  for  one  year  thereafter;  but 
other  net  improvements  and  the  net  product  is  taxable. 

b.  Assessment. — Every  person  is  required  to  furnish 
a  sworn  list  of  the  items  and  value  of  his  property  as 
of  March  1  of  each  year,  but  the  assessed  value  is  fixed 
at  the  cash  value  of  the  property  as  determined  by 
the  assessor.  For  a  false  list  or  failure  to  render  a  list 
the  penalty  is  an  increase  of  25  per  cent  in  the  assessed 
value. 

Lands  are  to  be  designated  on  the  assessment  lists  according  to 
their  character,  as  agricultural,  grazing,  coal,  saline,  mineral,  tim- 
ber, and  town,  city,  or  village  lots. 

Bona  fide  debts  may  be  deducted  from  credits. 

Corporations  are  assessed  on  their  property  where  the  same  is  situated. 
But  where  the  entire  capital  or  property  is  assessed,  the  stockholders  are 
not  taxed  individually  on  their  stock. 

Bank  stock  in  national  or  territorial  banks  is  assessed  on  the  basis  of 
statements  by  the  corporate  officers,  and  the  taxes  are  paid  by  the  corpo- 
ration. 

Railroad,  telegraph,  telephone,  and  sleeping  car  companies  are  to  be 
assessed  by  the  territorial  board  of  equalization.  All  property  is  to  be 
assessed  at  its  actual  value.  The  valuation  is  apportioned  to  the  coun- 
ties where  the  property  is  located,  on  a  mileage  basis.  The  power  of  the 
board  extends  to  all  classes  T>(  property  owned  by  the  railroad. 

Insurance  companies  are  assessed  upon  the  excess  of  premiums 
received  over  losses  paid. 

c.  Equalization. — The  county  board  of  equalization 
equalizes  between  individuals  in  the  county  and  hears 
complaints  in  regard  to  the  assessment. 

The  territorial  board  of  equalization  hears  appeals 
from  the  county  board  of  equalization  or  from  any  city 
assessor  or  city  council.     The  board  adjusts  or  equalizes 
also  between  the  counties. 
2.  Rate— 

Commencing  with  the  fiscal  year  1902,  the  legisla- 
tive assembly  is  to  levy  an  annual  tax  for  territorial 
purposes  of  6  mills  on  the  dollar  of  taxable  property, 
the  proceeds  of  which  tax  is  to  be  distributed  pro 
rata  among  the  various  appropriations;  and  one  for 
the  maintenance  of  territorial  institutions  of  3 \  mills. 
In  addition,  the  territorial  auditor  is  to  levy  annually 
for  school  purposes  a  tax  of  3  mills  on  the  dollar,  which 
is  to  be  collected  by  the  county  collectors  with  other 
taxes. 


3.  Collection — 
Taxes  are  collected  by  the  collector  of  the  county, 
who  is  required  to  visit  each  precinct  and  give  notice  to 
all  persons  to  call  and  pay  their  taxes.  Payment  may 
be  made  in  two  installments,  the  first  between  August  1 
and  January  1 ,  and  the  second  within  six  months.  On 
the  1st  of  December  in  each  year  half  of  the  unpaid 
taxes  become  delinquent,  and  on  the  1st  of  June  the 
remaining  half,  from  which  dates  1  per  cent  is  added 
as  a  penalty  and  4  per  cent  additional  at  the  end  of  a 
month.  Delinquent  taxes  are  to  be  collected  by  dis- 
traint and  sale  of  personal  property,  and  10  percent  is 
added  as  compensation  to  the  collector.  Real  estate 
is  subject  to  sale  on  July  1.  Taxes  are  a  lien  from  the 
date  of  the  levy  thereof. 

II.  Poll  tax. 

A  poll  tax  of  $1  is  levied  upon  all  able-bodied  male 
persons  over  the  age  of  21  years,  for  school  purposes. 
All  poll  taxes  are  to  be  paid  to  the  county  treasurer  for 
the  use  of  the  respective  school  districts  in  which  the 
same  are  collected.  Exempt  are  active  members  of 
fire  companies. 

III.  Inheritance  tax. 

There  is  no  inheritance  tax. 

IV.  Corporation  taxes. 

Corporations  are  in  general  taxed  under  the  general 
property  tax. 

Car  companies  operating  palace,  drawing  room,  or  sleeping  cars  are 
to  pay  $2.50  upon  each  $100  of  gross  earnings  reported  by  April  1  in 
each  year.  One-half  goes  to  the  territorial  treasury  and  one-half  is 
apportioned  to  the  counties  according  to  mileage. 

Since  1905  insurance  companies  pay  2  per  cent  on  gross  premiums. 

Corporations  of  other  states  engaged  in  the  business  of  producing  or 
refining  petroleum,  or  coal  oil,  for  illuminating  purposes  are  to  pay  for 
right  to  sell,  $500;  wholesale  dealers  (domestic)  whose  sales  are  over 
$3,000  are  to  pay  $25;  retail  license  is  secured  for  $1. 

Express  companies  are  to  pay  $2  on  each  $100  of  gross  receipts  on 
the  business  in  the  territory.  One-half  is  distributed  to  the  counties 
according  to  business  done  therein. 

V.  Business  taxes  and  licenses. 

A  license  or  occupation  tax,  one-half  to  be  paid  into 
the  general  school  fund  and  one-half  into  the  general 
current  expense  fund  of  the  respective  counties,  is 
imposed  annually  on  the  following  businesses  and  paid 
to  the  county  collector: 

Peddlers — on  foot  or  with  one  animal,  $250;  with  two  animals,  $300. 
(Each  vehicle  requires  a  separate  license  and  the  license  is  good  only  in  one 
county.  These  rates  were  changed  in  1905.)  Dealers  in  merchandise 
other  than  liquors— annual  sales  less  than  $10,000,  $10;  $10,000  to 
$20,000,  $20;  $20,000  to  $50,000,  $50;  $50,000  to  $75,000,  $75;  $75,000 
to  $100,000,  $100;  over  $100,000,  $150.  Real  estate  agents,  $10;  insur- 
ance agents,  $10;  hotels  and  restaurants— receipts  $1,000  to  $2,000,  $20; 
receipts  $2,000  to  $5,000,  $40;  receipts  over  $5,000,  $60.  Livery  and 
feed  stables  and  stage  lines,  $10;  pawnbrokers,  $250;  theaters  and  pub- 
lic halls— capacity  300  persons,  $10;  capacity  over  300  persons,  $25. 
License  taxes,  one-half  of  which  are  for  territorial  and  one-half  for 
county  purposes,  are  levied  as  follows  upon  liquors:  Wholesale  liquor 
dealers,  $100;  brewers,  $60;  distillers,  $200;  license  taxes  are  to  be 


TAXATION  AND  REVENUE  SYSTEMS— NEW  MEXICO. 


755 


paid  into  the  school  fund  of  the  county.  Retail  liquor  dealers — 
cities  or  towns  of  500  inhabitants  or  less,  $100;  500  to  1,000,  $200; 
1,000  or  over,  $400. 

B.    FEES. 

Secretary  of  state. — Corporation  charters — railroads,  local  fee,  $100 
(also  $1  for  every  mile  of  railroad  to  be  constructed  in  the  territory); 
mining,  milling,smelting,  capital  $100,000  or  less, $25 (for  every  $100,000 
thereover,  $5) ;  beet  sugar,  irrigating  ditches  and  dams,  colonization  and 
improvement,  capital  $50,000  or  less,  $15  (for  every  $10,000  additional, 
$1);  building  and  loan  associations,  $25  (for  every  $10,000  over  $25,000, 
$1);  benevolent,  charitable,  religious,  or  scientific  associations,  $1; 
manufacturing  and  industrial  associations,  $10  (for  every  $5,000  capi- 
tal in  excess  of  $10,000,  $2);  increase  or  decrease  of  capital  stock,  25 
cents  for  every  $1,000;  other  amendments  to  articles, $10;  filingannual 
balance  sheet,  $1.  Foreign  building  and  loan  associations,  capital  not 
exceeding  $1,000,000,  $200  (also  one-fourth  of  1  per  cent  of  capital 
stock  in  excess  of  $250,000) ;  annual  statements,  $25.  Pharmacists — 
registration,  $2;  examination  and  certificate,  $5.  Physicians,  exami- 
nation and  certificate,  $20;  dentists — certificate,  $5;  examination  and 
certificate,  $25. 

The  list  of  fees  was  revised  in  1905. 

County  Revenues. 

A.    TAXES. 

I.    The  general  'property  tax. 

1.  Base — 

The  property  included  and  the  assessment  and 
equalization  thereof  are  the  same  for  counties  as  for  the 
territory. 

2.  Rate— 

The  boards  of  county  commissioners  of  the  various 
counties  are  authorized  to  levy  for  current  expenses  an 
annual  tax  of  not  to  exceed  5  mills  on  the  dollar  upon 
the  assessed  value  of  all  taxable  property  in  the 
county. 

A  special  tax  may  also  be  levied  of  not  to  exceed  2  mills  on  the 
dollar  for  repairs  on  county  courthouses  and  jails. 

Counties  are  authorized  to  levy  a  special  tax  on  horses,  bovine  cat- 
tle, sheep,  and  goats  in  the  county  not  to  exceed  2  mills  on  the  assessed 
value,  to  raise  a  bounty  for  killing  wild  animals. 

3.  Collection — 
Same  as  for  territory. 

II  and  III.  Poll  tax  and  inheritance  tax. 

There  are  no  county  poll  or  inheritance  taxes,  but  the 
counties  collect  and  disburse  the  general  poll  tax  for 
schools. 

IV.  Corporation  taxes. 

One-half  of  the  territorial  tax  upon  car  companies 
is  apportioned  to  the  counties  according  to  mileage ; 
and  one-half  of  the  tax  on  the  gross  receipts  of  ex- 
press companies  is  distributed  to  the  counties  accord- 
ing to  business  done  therein. 

V.  Business  taxes  and  licenses. 


One-half  of  the  territorial  tax  on  occupations  is  paid 
into  the  general  current  expense  fund  of  the  county, 
also  all  licenses  on  the  retail  traffic  in  malt,  vinous, 
or  distilled  liquors  goes  into  the  county  school  fund. 
(For  rates,  see  State  revenues.) 

Nickel-in-the-slot  machine  used  as  gambling  device  or  game  of 
chance,  $50. 

Municipal  Revenues. 

a.    TAXES. 

I.  The  general  property  tax. 

1.  Base — 

The  property  included  and  the  methods  of  assess- 
ment and  of  equalization  are  the  same  as  for  county 
and  territorial  taxation. 

2.  Rale— 

Not  more  than  1  per  cent  ad  valorem  is  to  be  levied 
by  any  municipality.  In  towns  the  tax  is  limited  to 
one-half  of  1  per  cent. 

3.  Collection — 
Same  as  for  territory. 

II.  Poll  tax. 

Each  able-bodied  male  citizen  between  21  and  60 
years  of  age  may  be  required  to  pay  a  poll  tax  of  $1  or 
to  do  a  certain  amount  of  labor  in  lieu  thereof. 
Ill  and  IV.   Inheritance  tax  and  corporation  taxes. 

There  are  no  inheritance  or  corporation  taxes. 
V.  Business  taxes  and  licenses. 

The  city  council  or  town  board  of  trustees  fixes  the 
amount  of  licenses  on  sale  of  liquors  and  on  peddlers, 
pawnbrokers,  ordinaries,  cabmen,  amusements  and 
games,  toll  bridges  and  ferries,  and  various  similar 
lines  of  business. 

School  Revenues. 

The  school  revenues  consist  of  the  proceeds  of  a  tax 
of  3  mills  on  the  dollar,  levied  by  the  territorial  auditor 
on  all  the  taxable  property  of  the  territory,  which  are 
apportioned  to  the  various  school  districts  according 
to  the  number  of  school  children ;  and  of  the  income  of 
the  poll  taxes,  which  are  for  the  use  of  the  respective 
school  districts  in  which  they  are  collected.  In  dis- 
tricts including  incorporated  cities  or  towns  the  boards 
of  education  may  levy  an  additional  tax  of  7  J  mills  on 
the  dollar,  and  in  other  districts  the  school  directors 
may  levy  one  of  5  mills  for  school  expenses  and  the 
sinking  fund.     Also  the  retail  liquor  licenses. 

There  is  also  a  temporary  school  fund  consisting  of 
33  £  per  cent  of  the  proceeds  of  intestate  estates  which 
escheat,  forfeitures  on  bonds  of  school  officers,  fines 
and  licenses  on  liquor  dealers,  distilleries,  and  breweries. 


756 


WEALTH,  DEBT,  AND  TAXATION. 


NEW   YORK. 


New  York  has  developed  a  system  of  state  taxes 
which  makes  the  state  government  practically  inde- 
pendent of  the  general  property  tax.  Resort  to  the 
general  property  tax  may  still  be  had  for  state  reve- 
nues, but  in  1902  the  state  ad  valorem  tax  on  general 
property  was  at  the  low  rate  of  thirteen  one-hundredth s 
of  1  mill  on  the  dollar  and  was  levied  for  canal  pur- 
poses. The  revenue  from  this  source  was  less  than 
one  twenty-fourth  of  the  entire  revenue.  The  largest 
single  item  in  the  state  revenues  is  the  state  liquor 
licenses.  Next  comes  the  series  of  general  and  special 
corporation  taxes,  then  the  inheritance  tax,  and  there- 
after a  number  of  miscellaneous  items. 

The  general  property  tax,  as  used  mainly  for  county 
and  municipal  purposes,  presents  the  following  marked 
peculiarities:  First,  there  is  no  "listing  system,"  that 
is,  the  taxpayer  is  not  ordinarily  required  to  render  a 
statement  as  to  all  his  property.  Corporations,  how- 
ever, unlike  individuals,  are  required  to  render  such 
statements.  Second,  the  rule  that  personalty  follows 
the  situs  of  its  owner  is  carried  to  a  far  greater  extent 
than  is  usual  in  other  states.  Third,  each  taxpayer  is 
allowed  to  deduct  his  debts  from  the  entire  amount  of 
his  personal  property  instead  of  from  his  credits  only, 
as  is  usual  elsewhere.  Fourth  (and  this  is  a  conse- 
quence of  the  third),  "special  franchises,"  by  which 
is  meant  mainly  the  right  to  use  the  public  streets  on, 
over,  or  under  the  ground,  are  classed  for  purposes  of 
taxation  as  real  estate.  This  prevents  corporations 
owning  such  franchises  from  deducting  their  entire 
bond  issues,  which  often  amount  to  more  than  the 
value  of  the  personalty,  and  thus  escaping  taxation  en- 
tirely. 

CONSTITUTIONAL    PROVISIONS. 

The  constitution  of  the  state  of  New  York  contains 
no  provisions  as  to  the  revenue  system,  but  by  an 
amendment  adopted  in  November,  1901,  the  legisla- 
ture was  forbidden  to  pass  any  private  or  local  law 
exempting  persons  or  associations  from  taxation. 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

a.  Town — 

(1)  The  town  assessors,  three  in  each  town,  formerly  elected  one  every 
year  for  a  full  term  of  three  years,  but  since  1901  all  three  are  elected 
biennially,  for  a  term  of  two  years.  In  incorporated  villages  the  trus- 
tees act  as  assessors,  unless  the  village  has  over  2,000  inhabitants,  in 
which  case  there  may  be  three  assessors  appointed  by  the  trustees. 

1  This  compilation  is  derived  mainly  from  the  following  sources: 

Birdseye's  Revised  Statutes,  third  edition,  1901. 

Heydecker's  General  Laws  and  Revised  Statutes,  second  edition, 
1901. 

The  Greater  New  York  Charter,  Ash  &  Ash,  edition  of  1901. 

The  New  York  Tax  Law,  by  John  M.  Drake,  a  handbook  for  assess- 
ors, collectors,  and  lawyers,  edition  of  1902. 


(2)  The  tax  collectors,  one  in  each  town,  elected  biennially. 

b.  City— 

Except  in  the  larger  cities  the  departures  from  this  model  of  township 
officers  are  more  formal  than  real. 

(3)  In  cities  of  the  second  class  (50,000  to  250,000  inhabitants),  four 
assessors,  elected  for  a  full  term  of  four  years,  two  at  each  biennial 
election. 

(4)  In  cities  of  the  second  class,  a  board  of  estimate  and  apportion- 
ment, composed  of  the  mayor,  comptroller,  corporation  counsel,  presi- 
dent of  the  common  council,  and  city  engineer,  which  assists  the  council 
in  preparing  the  tax  levy. 

(5)  In  New  York  city,  a  board  of  taxes  and  assessments,  composed  of 
a  president  and  four  2  other  persons  appointed  by  the  mayor  as  commis- 
sioners.    They  appoint  deputies  not  to  exceed  forty  in  number. 

(6)  In  New  York  city,  a  receiver  of  taxes,  who  is  head  of  the  bureau 
for  the  collection  of  taxes. 

(7)  In  New  York  city,  a  board  of  estimate  and  apportionment,  com- 
posed of  the  mayor,  comptroller,  president  of  the  board  of  aldermen, 
and  the  presidents  of  the  boroughs  of  Manhattan,  The  Bronx,  Brooklyn, 
Queens,  and  Richmond,  which  prepares  the  budget. 

c.  County — 

(8)  The  county  boards  of  supervisors,  who  act  as  county  boards  of 
equalization. 

d.  State — 

(9)  The  state  board  of  tax  commissioners,  of  three  members,  appointed 
by  the  governor,  to  hold  office  for  a  full  term  of  three  years,  one  mem- 
ber retiring  each  year. 

(10)  The  state  board  of  equalization,  composed  of  the  commissioners 
of  the  land  office  and  the  commissioners  of  taxes. 

(11)  State  comptroller  and  state  treasurer,  elected  for  term  of  two 
years. 

State  Revenues, 
a.  taxes. 

I.    The  general  property  tax. 

(N.  B. — This  tax  is  now  but  little  used  for  state 
purposes  and  is  practically  a  local  tax.     It  is,  how- 
ever, included  and  fully  described  here  because  still 
used  to  some  extent.) 
1.  Base — 

a.  The  property  included  and  exempt. — All  real  prop- 
erty within  this  state,  and  all  personal  property  situ- 
ated or  owned  within  this  state,  is  taxable,  unless 
exempt  by  law. 

(1)  "Real  estate"  includes  land  and  all  buildings  and  structures 
affixed  thereto ;  wharves  and  piers  and  the  rights  connected  therewith ; 
bridges,  telegraph  lines,  wires,  poles,  and  appurtenances;  all  supports 
and  inclosures  for  electrical  conductors;  all  surface,  underground,  or 
elevated  railroads;  the  value  of  all  franchises,  rights,  or  permission  to 
construct,  maintain,  or  operate  the  same;  all  railroad  structures; 
branches,  etc.,  on  public  roads  or  grounds;  mains,  pipes,  or  tanks  for 
conducting  steam,  heat,  water,  oil,  electricity,  or  any  property  or  sub- 
stance, including  the  value  of  all  franchises,  rights,  authority,  or  permis- 
sion to  construct,  maintain,  or  operate  the  same  in,  under,  above,  upon, 
or  through  any  streets;  all  trees  and  underwood  growing  upon  land,  and 
all  mines,  minerals,  quarries,  and  fossils  in  and  under  the  same.  A  fran- 
chise, right,  authority,  or  permission  specified  in  this  subdivision  shall 
for  the  purpose  of  taxation  be  known  as  a  "  special  franchise. "  A  special 
franchise  shall  be  deemed  to  include  the  value  of  the  tangible  property 
of  a  person,  copartnership,  association,  or  corporation  situated  in,  upon, 

2  Made  six  in  1904. 


TAXATION  AND  REVENUE  SYSTEMS— NEW  YORK. 


757 


under,  or  above  any  street,  highway,  public  place,  or  public  waters  in 
connection  with  the  special  franchise.  The  tangible  property  so  included 
shall  be  taxed  as  part  of  the  special  franchise. 

(2)  "Personal  property"  includes  chattels,  money,  things  in  action, 
debts  due  from  solvent  debtors,  whether  on  account,  contract,  note, 
bond,  or  mortgage;  debts  and  obligations  for  the  payment  of  money 
due  or  owing  to  persons  residing  within  the  state,  however  secured  or 
wherever  such  securities  shall  be  held;  debts  due  by  inhabitants  of  this 
state  to  persons  not  residing  within  the  United  States  for  the  purchase 
of  any  real  estate;  public  stocks,  stocks  in  moneyed  corporations,  and 
such  portion  of  the  capital  of  incorporated  companies,  liable  to  taxa- 
tion on  their  capital,  as  shall  not  be  invested  in  real  estate.  Mortgages 
are  taxable  as  personal  property  and  no  deduction  is  allowed  from  the 
value  of  the  real  estate. 

(3)  Exemptions  from  taxation,  in  addition  to  all  public  property, 
are:  The  lands  of  any  Indian  reservation;  all  property  exempt  by  law 
from  execution  other  than  an  exempt  homestead ;  certain  bonds  of  the 
state  and  of  municipal  corporations;  the  real  property  of  a  corporation 
or  association  organized  exclusively  for  the  moral  or  mental  improve- 
ment of  men  or  women,  or  for  religious,  bible,  tract,  charitable,  benevo- 
lent, missionary,  hospital,  infirmary,  educational,  scientific,  literary, 
library,  patriotic,  historical,  or  cemetery  purposes,  or  for  the  enforce- 
ment of  laws  relating  to  children  or  animals;  real  property  of  volun- 
teer fire  departments;  parsonages  up  to  $2,000;  real  property  of  agri- 
cultural societies;  real  and  personal  property  of  ministers  and  priests 
to  $1,500;  vessels  engaged  in  ocean  commerce  and  the  companies  own- 
ing them  until  1923;  certain  property  of  nonresidents;  shares  of  stock; 
and  deposits  in  savings  banks. 

b.  Assessment. — There  is  in  general  but  one  assess- 
ment roll  for  state,  county,  and  local  purposes.  This 
is  made  up  in  the  first  instance  by  the  local  assessors. 

The  date  to  which  the  assessment  refers  is  not  defined 
clearly  in  the  statutes;  but  the  assessment  is  made 
between  the  1st  of  May  and  the  1st  of  July  (in  cer- 
tain cases  the  work  begins  April  15).  But  tax  liens,  as 
a  rule,  attach  when  the  tax  is  confirmed  by  the  super- 
visors in  November.  The  assessment  of  banks  is  made 
on  the  basis  of  a  report  which  refers  to  June  1 ;  that  of 
"special  franchises,"  at  different  dates  in  different 
cities— ranging  from  April  1  in  some  cities  to  October 
1  in  others.  The  figures  showing  the  assessment  valu- 
ations are  therefore  not  synchronous  and  it  is  impossi- 
ble to  make  them  so. 

A  peculiarity  of  the  method  of  assessment  is  the 
absence  of  any  general  statement  required  of  the  indi- 
vidual taxpayers;  corporations  are,  however,  required 
to  render  statements.  (See  under  c.  Equalization, 
below,  for  a  description  of  the  taxpayer's  right  to  be 
heard  on  "grievance  day.") 

Property  is  to  be  assessed  at  its  full  value.  What 
this  value  is  has  not  been  defined  by  statute,  but  the 
courts  have  held  it  to  be  the  "amount  of  money  the 
property  would  sell  for  at  a  fair,  free,  and  well-adver- 
tised sale." 

Debts  owing  may  be  deducted  from  the  full  value  of  the  personal    ' 
property  owned. 

Real  estate  is  assessed  where  located,  and  personal  property,  with 
few  exceptions,  at  the  place  of  residence  of  the  owner. 

In  general,  corporations  are  assessable  upon  their  capital  "existing 
in  money  or  property,"  and  the  shareholders  are  not  assessable  upon 
their  interest. 


National  banks  were,  until  1901,  assessed  on  their  real  estate  only, 
the  shareholders  being  assessed,  at  the  place  where  the  bank  was 
located,  for  the  stock  at  its  market  value,  less  the  value  of  the  real 
estate.  But  in  1901  the  method  of  taxing  national  banks  was  changed 
so  that  the  tax  is  uniformly  1  per  cent  on  the  capital,  surplus,  and 
undivided  profits  without  deduction  for  debt  or  on  account  of  tax  paid 
on  real  estate. 

The  "special  franchises,"  mainly  those  for  the  use  of  the  public 
streets  by  public  service  corporations,  which  are  assessed  as  real  estate, 
in  order  that  the  provision  in  regard  to  the  deduction  of  debts  from 
all  personal  property  might  not  nullify  the  attempt  to  tax  them,  are 
assessed  by  the  state  board  of  tax  commissioners,  who,  however,  make 
this  assessment  as  if  for  the  local  governments;  this  assessment  is, 
however,  the  basis  of  the  state,  county,  and  local  taxation. 

The  assessment  of  railroad,  telegraph,  telephone,  or  pipe-line  com- 
panies made  by  the  assessors  is  apportioned  by  them  among  the  school 
districts. 

c.  Equalization. — The  assessment  roll  is  completed 
by  the  assessors  on  or  before  the  1st  of  August;  then, 
after  public  notice,  a  meeting  of  the  assessors  is  held 
on  "grievance  day,"  which  must  be  on  the  third 
Tuesday  in  August,  when  all  complainants  may  ap- 
pear, and  if,  after  examining  them  under  oath,  the 
assessors  are  satisfied  that  a  change  should  be  made, 
they  may  amend  the  assessment  as  to  any  individual. 
That  is,  the  assessors  sit  as  a  board  of  review. 

The  board  of  supervisors  of  each  county  equalizes 
the  assessment  of  real  estate  between  the  different  tax 
districts  within  the  county,  but  may  not  change  the 
aggregate  valuations  of  the  county.  In  regard  to  per- 
sonal property  it  has  the  power  only  to  correct  illegal 
or  erroneous  assessments. 

The  state  board  of  equalization  equalizes  the  assess- 
ment of  real  estate  as  between  counties,  but  may  not 
reduce  the  aggregate  valuation  of  all  counties.  This 
equalization  by  the  state  board  affects  the  apportion- 
ment of  the  state  taxes  only,  as  the  levy  is  made  by 
the  supervisors  on  the  valuations  as  equalized  by  the 
county  board. 

Any  supervisor  may  appeal  from  the  action  of  the 
board  of  supervisors  in  regard  to  his  district  to  the  state 
board  of  tax  commissioners. 

There  is  no  provision  for  the  equalization  of  the 
assessment  of  personal  property. 

2.  Rate-^ 

The  amount  of  state  taxes  to  be  raised  is  appor- 
tioned among  the  counties  by  the  comptroller  on  the 
basis  of  the  assessment  as  equalized  by  the  state  board 
of  equalization.  The  rate  is  expressed  in  mills  on 
the  dollar.  The  amount  required  from  each  county, 
as  determined  by  state  equalization,  is  levied,  together 
with  the  local  taxes,  by  the  supervisors  upon  the 
assessments  as  equalized  by  them. 

3.  Collection — 

State  and  all  other  taxes  on  individuals  and  banks 
are  collected  by  the  local  tax  collectors.  Those  on 
individuals  are  a  lien  on  the  real  and  personal  property 
of  the  taxpayer;  and  those  on  bank  stocks,  on  the 
dividends  and  shares. 


758 


WEALTH,  DEBT,  AND  TAXATION. 


Railroad,  telegraph,  telephone,  and  electric  light  companies  may, 
within  thirty  days,  pay  their  taxes  with  1  per  cent  fees  to  the  county 
treasurers.  If  not  so  paid  they  are  collected  by  the  tax  collector. 
Unpaid  taxes  may  be  collected  by  seizure  and  sale.  There  are  elaborate 
provisions  for  the  collection  of  taxes  from  nonresidents. 

The  tax  collector  is  entitled  to  receive  as  fees  for  collection  2  per 
cent  of  all  taxes  collected  within  thirty  days  of  notice  that  he  has 
received  the  roll  (which  must  be  on  or  before  December  20)  if  the 
aggregate  amount  shall  not  exceed  $2,000;  otherwise,  1  per  cent  in 
addition.  On  all  taxes  collected  after  the  expiration  of  thirty  days 
he  is  entitled  to  receive  an  additional  5  per  cent,  which  is  the  delin- 
quency penalty.  He  also  receives  2  per  cent  as  fees  for  all  taxes 
returned  to  the  county  treasurer  as  unpaid. 

II.  Poll  tax. 

There  is  no  poll  tax  for  state  purposes. 

III.  Inheritance  tax. 

A  tax  is  imposed  upon  all  transfers  by  will,  by  the 
intestate  laws,  or  by  gift  in  contemplation  of  death, 
of  property  situated  or  owned  within  the  state  of  the 
value  of  $500  or  over. 

The  rate  is  5  per  cent  of  the  clear  market  value  of 
such  property  (construed  to  mean  estate),  but  when 
the  transfer  is  to  the  father,  mother,  husband,  wife, 
child,  brother,  sister,  wife  or  widow  of  a  son  or  hus- 
band of  a  daughter,  or  to  any  child  or  adopted  child, 
the  transfer  is  not  taxable  unless  it  is  personal  property 
of  the  value  of  $10,000  or  more,  in  which  case  the  rate 
is  1  per  cent.  Institutions  exempt  from  the  general 
property  tax  are  not  exempt  from  the  inheritance  tax 
unless  they  are  religious  corporations.  (Amended  in 
1903  to  include  real  estate.) 

If  the  tax  is  paid  within  six  months,  a  discount  of 
5  per  cent  is  allowed;  if  not  paid  within  eighteen 
months,  interest  at  the  rate  of  10  per  cent  is  charged. 

Salaried  appraisers  are  appointed  in  certain  coun- 
ties to  assist  in  the  collection  of  the  tax,  which  is  pay- 
able to  either  the  county  treasurers  or  the  state  comp- 
troller. In  counties  where  there  are  no  such  appraisers 
the  county  treasurer  receives  5  per  cent  of  the  first 
$50,000  collected,  3  per  cent  of  the  next  $50,000,  and  1 
per  cent  of  the  additional  sums. 

The  proceeds  of  this  tax  are  paid  into  the  state 
treasury  and  are  not,  as  such,  apportioned  to  the  lower 
divisions. 

* 

IV.  Corporation  taxes. 

New  York  has  gradually  developed  a  complete  sys- 
tem of  corporation  taxes  which  supplement  the  general 
property  tax. 

There  is,  first,  the  "organization  tax"  on  domestic 
corporations,  with  a  corresponding  "license  tax"  for 
foreign  corporations,  both  of  which  are  described  un- 
der "B.  Fees,"  below,  because  of  their  close  analogy 
to  the  fees  for  incorporation  charged  in  other  states ; 
second,  an  annual  franchise  tax,  based  upon  the  capi- 
tal stock  at  rates  which  vary  somewhat  with  the  divi- 
dends; and  third,  a  series  of  "additional"  and  other 
franchise  taxes  on  different  classes  of  corporations. 

These  three  classes  of  franchise  taxes  should  not  be 


confused  with  the  taxation  of  "special  franchises,"  or 
mainly  the  privileges  to  go  on,  over,  or  under  the  pub- 
lic streets,  which  are  taxed  as  real  estate  under  the 
general  property  tax. 

The  following  are  exclusively  state  taxes  and  the 
comptroller  is  the  executive  officer  for  their  adminis- 
tration. If  they  are  not  paid  within  thirty  days  of 
the  time  when  due,  a  penalty  of  5  per  cent  is  added  and 
1  per  cent  per  month,  together  with  legal  interest,  until 
paid.  They  may  be  collected  by  action,  and  failure  to 
pay  works  forfeiture  of  charter. 

The  "organization  tax"  on  domestic  corporations  and  the  "license 
tax"  on  foreign  corporations  are  to  be  found  under  State  revenues,  "  B. 
Fees,"  below. 

The  "annual  franchise  tax"  levied  on  every  corporation  is  based 
on  the  amount  of  its  capital  stock  employed  in  the  state.  The  rate  is 
one-fourth  of  1  mill  for  each  1  per  cent  of  dividends  declared  during  the 
year  ending  October  31,  if  the  dividends  amount  to  6  per  cent  or  more  on 
the  par  value  of  the  stock.  If  the  dividends  for  the  year  amount  to  less 
than  6  per  cent,  the  rate  is  1  \  mills.  If  no  dividend  is  declared,  the  rate 
of  1J  mills  applies  to  the  appraised  instead  of  the  par  value  of  the  capital 
stock  used  in  the  state.  When  a  corporation  has  different  kinds  of 
stock  and  different  rates  of  dividends,  each  kind  of  stock  is  treated 
separately  and  each  in  the  manner  above  described. 

Street  railroad  companies  of  all  kinds,  whose  properties  are  leased  to 
and  operated  by  other  companies  so  that  their  gross  earnings  consist  of 
rentals  or  the  like,  pay  3  per  cent  of  the  dividends  declared  from  such 
sources  in  excess  of  4  per  cent  on  amount  of  capital  stock. 

Banks,  savings  banks,  institutions  for  savings;  title  guarantee,  insur- 
ance, or  surety  companies;  trust  companies,  organized  under  the  laws  of 
New  York;  laundry  corporations,  manufacturing  corporations,  mining 
corporations,  agricultural  and  horticultural  societies;  companies  oper- 
ating elevated  or  surface  railroads  not  operated  by  steam,  or  formed  for 
supplying  water  or  gas  for  electric  or  steam  heating,  lighting,  or  power 
purposes  are  exempt  from  this  tax.  But  to  gain  such  exemption  laun- 
dry, manufacturing,  and  mining  companies  must  have  at  least  40  per 
cent  of  their  capital  invested  in  the  state,  and  that  part  only  is  exempt 
which  is  so  employed. 

An  "additional  franchise  tax"  is  levied  upon  corporations  formed 
for  steam  surface  railroads,  canal,  steamboat,  ferry,  express,  navigation, 
pipe-line,  transfer,  baggage  express,  telegraph,  telephone,  palace  car  or 
sleeping  car  purposes  and  all  other  transportation  companies  not  liable 
to  the  taxes  described  in  the  two  following  paragraphs.  The  rate  per 
annum  is  five-tenths  of  1  per  cent  of  the  gross  earnings  in  the  state, 
which  shall  include  gross  earnings  from  its  business  originating  and 
terminating  within  the  state,  but  not  earnings  derived  from  business 
of  an  interstate  character. 

Elevated  railroads  or  surface  roads  not  operated  by  steam  pay  1 
per  cent  of  gross  earnings  and  3  per  cent  on  dividends  in  excess  of  4  per 
cent  upon  actual  amount  of  paid-up  capital.  (For  leased  roads,  see 
"annual  franchise  tax,"  above.) 

Waterworks,  gas,  electric  or  steam  heating,  lighting,  and  power  com- 
panies pay  five-tenths  of  1  per  cent  of  gross  earnings  and  3  per  cent  of 
dividends  in  excess  of  4  per  cent. 

Insurance  companies  generally  pay  1  per  cent  of  gross  premiums, 
but  fire  and  marine  companies,  if  incorporated  in  other  states  of  the 
United  States,  are  exempt;  if  incorporated  under  the  laws  of  foreign 
countries  they  pay  five-tenths  of  1  per  cent,  and  life,  health,  and  casu- 
alty companies  formed  under  laws  of  foreign  countries  are  exempt. 
This  tax  does  not  apply  to  fraternal  beneficiary  societies,  to  companies 
for  the  insurance  of  domestic  animals,  nor  to  a  few  others.  There  is 
also  a  retaliatory  tax  law. 

Trust  companies,  domestic,  pay  1  per  cent  of  capital  stock,  sur- 
plus, and  undivided  profits. 


TAXATION  AND  REVENUE  SYSTEMS— NEW  YORK. 


759 


Savings  banks,  domestic,  pay  1  per  cent  of  capital  stock,  surplus, 
and  undivided  profits. 

Foreign  bankers  pay  5  per  cent  on  interest  earned  on  money  loaned 
in  the  state. 

V.  Business  taxes  and  licenses. 
The  taxes  and  licenses  are  annual. 

Liquor  tares. — One-third  to  the  state  and  two-thirds  to  the  munici- 
pality. (Made  one-half  each  in  1903.)  Upon  trafficking  in  liquors  to 
be  drunk  on  the  premises. — In  cities,  towns,  etc.,  of  1,500,000  inhab- 
itants or  more,  $800  (1903,  $1,200);  500,000  to  1,500,000,  $650  (1903, 
$975):  50,000  to  500,000,  $.500  (1903,  $750);  10,000  to  50,000,  $350 
(1903,  $525);  5,000  to  10,000,  $300  (1903,  $450);  1,200  to  5,000,  $200 
(1903,  $300) ;  in  any  other  place,  $100  (1903,  $150).  Upon  trafficking  in 
liquors  not  to  be  drunk  on  the  premises. — In  cities,  etc.,  of  1,500,000 
inhabitants  or  more,  $500  (1903,  $750);  500,000  to  1,500,000,  $400 
(1903,  $000);  50,000  to  500,000,  $300  (1903,  $450);  10,000  to  50,000, 
$200  (1903,  $300);  5,000  to  10,000,  $100  (1903,  $150);  1,200  to  5,000, 
$75  (1903,  $112.50). 

Dealers  in  convict-made  goods,  an  annual  license  of  $500.  Pharma- 
cists, $5  (1903,  $7.50).  Car,  steamboat,  or  vessel,  $200  (1903,  $300). 
Persons,  etc.,  holding  license  to  sell  liquors  not  to  be  drunk  on  the 
premises,  for  delivery  wagons,  each,  $100  (1903,  $150).  Alcohol  for 
industrial  purposes. — In  cities,  etc.,  of  1,500,000  inhabitants  or  more, 
$25  (1903,  $37.50);  500,000  to  1,500,000,  $20  (1903,  $30);  50,000  to 
.500,000,  $15  (1903,  $22.50);  10,000  to  .50,000,  $10  (1903,  $15);  in  any 
other  place,  $5  (1903,  $7.50).  Growers  of  fruits,  etc.,  for  right  to  sell 
liquors  not  to  be  drunk  on  the  premises,  $50  (1903,  $75).  Race  meet- 
ings (horse  racing),  5  per  cent  of  gross  receipts.  Peddlers  on  foot,  $20: 
one  horse,  etc.,  $30;  more  than  one  horse,  $50.  In  all  cases  $2  addi- 
tional must  be  paid  to  the  secretary  of  state. 

B.    FEES. 

Every  stock  company  when  incorporated  pays  a  so-called  organiza- 
tion tax  of  one-twentieth  of  1  per  cent  of  authorized  capital  stock, 
which  is  collected  by  the  state  treasurer.  The  same  rate  applies  to 
every  increa-r. 

Every  foreign  company  entering  the  state  pays  a  "license  fee"  of 
one-eighth  of  1  per  cent  of  capital  stock  employed  by  it  in  the  state 
during  its  first  year  of  business  and  upon  any  increase  in  subsequent 
years. 

Banks  have  to  pay  all  the  expenses  of  conducting  the  department 
of  banking,  which  are  apportioned  among  them  as  the  superintendent 
deems  just. 

The  expenses  of  the  railroad  board,  not  to  exceed  $60,000,  are  ap- 
portioned among  the  roads,  one-half  in  proportion  to  the  net  income 
and  one-half  in  proportion  to  the  mileage. 

The  superintendent  of  insurance  collects  the  following:  For  riling 
charter,  $30;  annual  statement,  $20;  certificates  to  agents,  not  over  $5; 
copies  of  papers  on  file,  10  cents  per  folio;  certifying  same,  $1;  exami- 
nation of  companies,  actual  expenses,  not  to  exceed  $50. 

The  railroad  board  collects  the  following:  For  copies  of  papers,  etc.. 
per  folio,  10  cents;  certified,  15  cents;  for  seal,  $1;  certified  copy  of 
quarterly  report,  50  cents;  certified  copy  of  annual  report,  $1.50. 

County  Revenues. 

a.   TAXES. 

I.    The  general  property  tax. 
1.  Base — 
The  property  included  and  the  method  of  assessment 
and  of  equalization  are  the  same  for  the  county  as  al- 
ready described  for  the  state. 


2.  Rate— 

The  rate  is  determined  and  the  tax  levy  made  by  the 
board  of  supervisors. 

3.  Collection — 

County  taxes  are  collected  with  other  taxes  by  the 
local  tax  collectors. 

II,  III,  and  IV.  Poll  tax,  inheritance  tax,  and  corpora- 
tion taxes. 

There  is  no  county  poll  tax,  and  counties  do  not 
share  in  the  inheritance  tax  nor  in  the  special  corpora- 
tion taxes. 
V.  Business  taxes  and  licenses. 

Dog  licenses  or  taxes  may  be  imposed  by  the  county  board  of  super- 
visors at  rates  to  be  fixed  by  them.  They  are  collected  by  the  tax  col- 
lectors, being  added  to  the  assessment  roll  by  the  assessors.  When  not 
otherwise  fixed,  the  rates  are:  For  one  bitch,  per  family,  $3 ;  each  addi- 
tional bitch,  $5;  for  one  dog  other  than  bitch,  50  cents;  each  additional 
dog,  $2.     The  tax  collector  retains  10  per  cent  as  his  fee. 

Municipal  Revenues. 

A.    TAXES. 

I.  The  general  property  tax. 

1.  Base — 

The  property  included  and  the  method  of  assessment 
and  of  equalization  have  already  been  described  under 
State  revenues. 

2.  Rate— 

The  rate  is  limited  to  2  per  cent  in  certain  cities  by 
charter,  in  some  by  statute,  and  in  others  is  fixed 
by  the  various  municipal  authorities.  In  New  York 
city  it  is  fixed  by  the  board  of  aldermen  on  certification 
from  the  board  of  estimate  and  apportionment ;  and  in 
a  similar  manner,  in  cities  of  the  second  class. 

3.  Collection — 

Municipal  taxes  are  collected  by  the  local  collectors, 
as  described  under  State  revenues,  above. 

II.  Poll  tax. 

This  is  a  highway  labor  assessment.  The  commis- 
sioners of  highways  assess  and  apportion  the  highway 
labor  to  be  performed  in  each  town.  The  whole  num- 
ber of  days'  work  assessed  must  not  be  less  than  three 
times  the  number  of  taxable  inhabitants.  Every  male 
inhabitant  over  21  years  of  age,  except  soldiers  and  sail- 
ors maimed  in  war,  members  of  fire  companies,  persons 
at  least  70  years  of  age,  clergymen,  paupers,  idiots,  and 
insane,  is  assessed  at  least  one  day's  work,  which  may 
be  commuted  at  the  rate  of  $1  per  daj\  The  residue  is 
apportioned  upon  the  estates,  real  and  personal. 

Towns  may  vote  to  change  this  to  a  money  tax,  in 
which  case  the  part  assessed  on  polls  is  $1. 

III.  Inheritance  tax. 

There  is  no  inheritance  tax  for  cities  and  towns. 

IV.  Corporation  taxes. 

Under  the  provision  of  chapter  550  of  general  laws 
of  1901,  the  tax  on  shares  of  bank  stock  collected  by 


r60 


WEALTH,  DEBT,  AND  TAXATION. 


the  county  treasurer  is  apportioned  among  the  cities, 
towns,  and  school  districts.  The  basis  of  apportion- 
ment is  the  number  of  shares  owned  by  residents  of 
the  several  civil  divisions  and  the  rates  within  such 
divisions.  In  some  cities  public  service  corporations 
pay  an  annual  rental  for  their  franchises,  and  all  mu- 
nicipalities levy  on  "special  franchises"  as  on  other 
property. 
V.  Business  taxes  and  licenses. 

Auctioneers,  in  cities  of  1 ,000,000  inhabitants  or  over,  $250.  New  York 
labor  commissioners  collect  from  ballast  lighters  and  captains  a  tax  of 
$10,  and  $5  for  renewal.  Cities  get  two-thirds  of  the  liquor  licenses  (see 
state  licenses) ;  since  1903,  one-half.  Pawnbrokers,  annually,  $500. 
Towns  may  license  peddlers  and  fix  the  rates.  Dog  licenses — in  cities  of 
from  20,000  to  800,000,  except  Buffalo,  $1;  in  cities  over  800,000,  $2; 
renewal,  $1.  Villages  may  license  carriages,  cabs,  etc.,  auctioneering, 
hawking,  peddling,  retail  business  from  canal  boats,  circuses,  theaters, 
or  other  exhibitions,  billiards,  bowling  alleys,  etc.,  and  public  halls 
stad  opera  houses.  A  license  tax  on  bicycles  may  be  issued  to  assist 
in  the  construction  of  bicycle  paths. 

The  board  of  aldermen  of  New  York  city  may  license  and  tax  carts, 
hacks,  cabs,  expressmen,  etc.,  car  drivers,  boatmen,  bootblacks,  pawn- 
brokers, junk  dealers,  keepers  of  intelligence  offices,  dealers  in  second- 
hand articles,  hawkers,  peddlers,  vendors,  scalpers  in  coal  freights, 
menageries,  circuses,  shows,  bone  boiling,  fat  rendering,  etc.,  and  dogs. 


In  New  York  city  these  licenses  are  annual:  For  each  public  cart  or 
truck,  $2;  public  hack  coach,  $3;  public  hack  cab,  $2;  special  hack 
coach,  $5;  special  hack  cab,  $3;  express  wagon,  $5;  junk  shop  or 
dealer,  $20;  dealer  in  secondhand  articles,  $25;  junk  cart  or  boat,  $5; 
peddler  using  horse  and  wagon,  $8;  peddler  using  push  cart,  $4;  ped- 
dler carrying  merchandise,  $2 ;  ticket  speculator,  $50 ;  coal  scalper,  $250; 
common  show,  $25;  public  shooting  gallery,  $5;  public  bowling  alley, 
$5;  public  billiard  table,  $3;  dirt  cart,  $1;  general  hoisting,  $25;  spe- 
cial hoisting,  $1;  fruit  stand,  $5;  soda  water  stand,  $5;  movable  news- 
paper stand,  $1;  newspaper  and  periodical  stand,  $5;  chair  of  a  boot- 
black stand,  $5;  stand  under  elevated  railroad  station,  $10;  driver  of 
any  licensed  vehicle,  50  cents. 

School  Revenues. 

School  taxes  are  levied  on  the  real  estate  and  the 
personal  property  of  each  school  district.  There  is  a 
special  equalization  made  by  the  two  or  more  super- 
visors concerned  when  a  district  occupies  parts  of  two 
or  more  towns;  otherwise  the  assessment  is  the  same 
as  for  other  taxes.  The  levy  is  made  and  the  rate 
fixed  by  the  school  trustees,  but  the  taxes  are  collected 
as  are  other  state,  county,  and  municipal  taxes. 
School  districts  also  receive  a  portion  of  the  taxes  on 
bank  shares  collected  by  the  county  treasurer,  and 
by  him  apportioned  among  the  minor  civil  divisions. 


NORTH   CAROLINA. 


North  Carolina  draws  her  revenue  from  various 
sources.  In  addition  to  the  general  property  tax  there 
is  an  elaborate  system  of  privilege  or  license  taxes,  for 
both  state  and  county,  and  also  state  inheritance  and 
income  taxes.  On  corporations  there  is  a  franchise 
tax,  graduated  according  to  capital  stock.  Railroad, 
telegraph,  telephone,  express,  and  insurance  compa- 
nies also  pay  special  taxes,  based  on  gross  receipts, 
but  in  some  cases,  where  the  assets  of  the  company  are 
invested  in  the  state  and  taxable  there,  these  are 
reduced. 

CONSTITUTIONAL    PROVISIONS. 
ARTICLE  V. 

Sec.  3.  Laws  shall  be  passed  taxing,  by  a  uniform  rule,  all  moneys, 
credits,  investments  in  bonds,  stocks,  joint-stock  companies  or  other- 
wise; and  also  all  real  and  personal  property,  according  to  its  true  value 
in  money.  The  general  assembly  may  also  tax  trades,  professions, 
franchises,  and  incomes,  provided  that  no  income  shall  be  taxed  when 
the  property  from  which  the  income  is  derived  is  taxed. 

Sec.  1.  The  general  assembly  shall  levy  a  capitation  tax  on  every 
male  inhabitant  over  twenty-one  and  under  fifty  years  of  age,  which 
shall  be  equal  on  each  to  the  tax  on  property  valued  at  three  hundred 
dollars  in  cash.  The  commissioners  of  the  several  counties  may  exempt 
from  capitation  tax  in  special  cases,  on  account  of  poverty  and  infirmity, 
and  the  state  and  county  capitation  tax  combined  shall  never  exceed 
two  dollars  on  the  head. 

Sec.  2.  The  proceeds  of  the  state  and  county  capitation  tax  shall  be 
applied  to  the  purposes  of  education  and  the  support  of  the  poor,  but  in 

1  This  compilation  is  derived  mainly  from  the  following  sources: 

"Revenue  act,"  Public  Laws  and  Resolutions  of  the  State  of  North 
Carolina,  Session  of  1901:  Raleigh,  N.  C,  1901. 

"Machinery  act,"  An  act  to  provide  for  the  assessment  of  property 
and  the  collection  of  taxes:  Session  of  1901. 

Code  of  North  Carolina,  1883:  Banks  &  Co.,  Albany,  N.  Y. 


no  one  year  shall  more  than  twenty-five  per  cent  thereof  lie  appropri- 
ated to  the  latter  purpose. 

Sec.  5.  Property  belonging  to  the  state  or  to  municipal  corporations 
shall  be  exempt  from  taxation.  The  general  assembly  may  exempt 
cemeteries  and  property  held  for  educational,  scientific,  literary,  chari- 
table, or  religious  purposes;  also  wearing  apparel,  arms  for  muster, 
household  and  kitchen  furniture;  the  mechanical  and  agricultural  imple- 
ments of  mechanics  and  farmers;  libraries  and  scientific  instruments,  or 
any  other  personal  property,  to  a  value  not  exceeding  three  hundred 
dollars. 

Sec.  6.  The  taxes  levied  by  the  commissioners  of  the  several  counties 
for  county  purposes  shall  be  levied  in  like  manner  with  the  state  taxes 
and  shall  never  exceed  the  double  of  the  state  tax,  except  for  a  special 
purpose  and  with  the  special  approval  of  the  general  assembly. 

ARTICLE    I. 

Sec  32.  Ex  post  facto  laws  *  *  *.  No  law  taxing  retrospec- 
tively sales,  purchases,  or  other  acts  previously  done,  ought  to  be  passed. 

ARTICLE    VII. 

Sec.  7.  (No  county,  city,  or  town  or  other  municipal  corporation  is  to 
levy  any  tax  except  for  necessary  expenses  thereof,  unless  by  a  vote  of 
the  majority  of  the  qualified  voters  therein.) 

Sec.  9.  All  taxes  levied  by  any  county,  city,  town,  or  township  shall 
be  uniform  and  ad  valorem,  upon  all  property  in  the  same,  except  prop- 
erty exempted  by  this  constitution. 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  Board  of  state  tax  commissioners,  composed  of  the  board  of  cor- 
poration commissioners,  which  exercises  general  supervision  over  tax 
listers  and  assessing  officers,  and  is  required  to  make  an  annual  report  to 
the  governor. 

(2)  Board  of  list  takers  and  assessors,  three  freeholders  in  each  town- 
ship, appointed  by  the  commissioners  of  each  county. 


TAXATION  AND  REVENUE  SYSTEMS— NORTH  CAROLINA. 


761 


(3)  The  county  board  of  equalization,  composed  of  the  board  of 
county  commissioners  and  the  chairman  of  the  board  of  list  takers  and 
assessors. 

(4)  Corporation  commissioners  are  to  be  a  board  of  appraisers  and 
assessors  for  railroad,  telegraph,  telephone,  street  railway,  canal,  and 
steamboat  companies,  and  other  companies  exercising  the  right  of 
eminent  domain. 

(5)  The  sheriff  is  ex  officio  tax  collector. 

State  Revenues. 

A.    TAXES. 

I.    The  general  property  tax. 
1.  Base — 

a.  Tht  property  included  and  exempt. — All  real  and 
personal  property  is  subject  to  taxation,  except  as 
exempted  by  statute. 

(1)  "Real  property,"  for  purposes  of  taxation,  includes  not  only  the 
land  itself,  bat  also  all  buildings,  structures,  and  improvements. 

(2)  "Railroad  property"  is  declared  to  be  personal  for  purposes  of 
taxation. 

(3)  Exemptions,  in  addition  to  public  property,  are:  Property  set 
apart  for  educational  purposes;  graveyards;  property  of  religious, 
scientific,  literary,  or  benevolent  associations;  parsonages;  endowment 
funds  of  public  library  associations;  property  of  Indians  not  citizens, 
except  lands  held  by  purchase;  wearing  apparel;  private  libraries; 
kitchen  and  household  furniture  not  exceeding  in  value  825;  growing 
crops;  and  armories  of  the  State  Guard.  All  corporate  property  is 
made  liable  to  taxation  and  tax  exemptions  to  corporations  are  repealed, 
except  as  to  property  held  for  religious,  charitable,  educational,  literary, 
or  benevolent  purposes,  and  cemeteries. 

b.  Assessment. — The  assessment  of  real  and  per- 
sonal property  is  made  by  the  board  of  list  takers  and 
assessors  of  each  township  on  the  basis  of  lists  made, 
under  oath,  by  the  taxpayers  of  property  owned  on 
June  1.  Property  is  to  be  assessed  at  its  true  value  in 
money,  such  valuation,  determined  after  actual  view 
if  practicable,  to  be  the  full  price  the  property  would 
bring  at  private  sale.  The  assessment  of  real  property 
is  in  force  for  four  years  or  until  altered  for  improve- 
ments or  deteriorations. 

Penalty  for  not  listing  property  is  $10  for  every 
$100  withheld  from  the  assessor. 

Debts  owing  by  any  person  may  lie  deducted  by  the  tax  lister  from 
the  amount  of  the  person's  credits. 

Improvements  and  lands  are  to  be  valued  separately. 

Corporations  are  required  to  make  reports  on  capital  stock  and  ap- 
praise the  actual  value  in  cash  thereof  on  June  1,  after  deducting  the 
assessed  value  of  all  real  and  personal  estate,  as  indicated  by  the 
amount  of  profit  made.  But  if  the  auditor  and  state  treasurer  are  not 
satisfied,  they  are  authorized  to  make  a  valuation  of  the  stock.  The 
valuation  of  the  stock  is  certified  to  the  counties  for  county,  township, 
town,  or  city  taxes  upon  the  total  value  of  the  stock.  There  is  a  penalty 
of  5  per  cent  for  failure  to  furnish  reports. 

Interests  in  limited  partnerships  and  joint-stock  associations  are 
deemed  capital  stock  and  assessed  accordingly. 

Companies  taxed  on  capital  stock  are  not  assessed  further  on  mort- 
gages, bonds,  or  other  securities  and  credits  owned  by  them  in  their 
own  right.  Individual  shareholders  are  not  taxed  on  their  stock. 
The  corporation  is  required  to  pay  the  state  tax  on  stock  directly  to  the 
state  treasurer. 


Bank  shares,  state  or  national,  are  to  be  listed  by  the  bank  for  the 
shareholders  at  the  market  or  actual  value,  from  which  the  value  of  real 
and  personal  property  «Ssessed  is  to  be  deducted.  The  state  taxes  on 
the  shares  are  to  be  paid  by  the  cashier  to  the  state  treasurer. 

Shares  of  stock  in  building  and  loan  associations  are  to  be  listed  by 
the  secretary  at  their  actual  value.  Shares  pledged  as  security  for 
loans  are  to  be  deducted.  The  secretary  is  to  pay  to  the  state  treas- 
urer the  state  tax,  and  to  the  sheriff  the  county  and  school  tax.  No 
other  tax  is  to  be  charged  on  the  association. 

Railroads  are  assessed  by  the  board  of  appraisers  and  assessors  upon 
property  of  general  state  character.  Machine  and  repair  shops,  etc., 
are  to  be  assessed  by  the  local  list  takers.  The  aggregate  value  of  tan- 
gible property  and  franchises  is  apportioned  to  the  counties  according 
to  length  of  road  therein. 

Canal  and  steamboat  companies  are  to  be  assessed  like  railroads. 

Telegraph,  telephone,  express,  sleeping  car  and  similar  car  companies, 
freight  and  refrigerator  car  companies,  street  railway,  waterworks, 
electric  light  and  power,  gas,  ferry,  bridge,  and  canal  companies,  and 
other  corporations  exercising  the  right  of  eminent  domain  are  assessed 
by  the  board  of  appraisets  and  assessors  on  the  cash  value  of  their  prop- 
erty in  the  state,  as  determined  from  the  market  value  of  the  capital 
stock  and  the  amount  of  mortgages.  The  valuation  is  apportioned  to 
the  counties. 

c.  Equalization. — The  county  board  of  equalization 
equalizes  the  valuation  of  property  by  raising  or 
lowering  the  assessment  to  make  it  conform  to  its  true 
value  in  money  and  to  the  average  valuations. 

The  state  tax  commissioners  review  the  tax  lists  as 
passed  upon  by  the  county  boards  and  equalize  them. 

2.  Rate— 

An  ad  valorem  tax  of  43  cents  on  every  $100  of  the  value  of  real 
and  personal  property  is  imposed  as  follows:  General  state  purposes, 
21  cents;  pensions,  4  cents;  public  schools,  18  cents.  The  taxes  for 
public  schools  are  paid  by  the  sheriff  to  the  county  treasurer  and 
appear  in  reports  of  county  revenue  and  not  of  state. 

3.  Collection — 

Taxes  are  due  on  the  first  Monday  in  September  in 
each  year  and  are  collected  by  the  sheriff  of  the  county, 
who  may  levy  on  personalty  after  November  1 .  Taxes 
are  .  a  lien  on  real  property  assessed  after  June  1 . 
Taxes  due  the  state  from  corporations  assessed  by  the 
state  board  of  corporation  commissioners  are  to  be  paid 
by  the  secretary  of  the  company  direct  to  the  state 
treasurer.  Companies  failing  to  pay  the  tax  are  liable 
to  suit  and  to  a  penalty  of  50  per  cent,  to  be  included 
in  the  judgment. 

II.  Poll  tax. 

On  each  male  between  21  and  50  ;years  of  age,  except 
the  poor  and  infirm,  there  is  levied  a  poll  tax  of  $1.29, 
the  proceeds  to  be  devoted  to  education  and  to  the 
support  of  the  poor.  In  1902  the  poll  tax  collected 
was  $1.58,  of  which  8  cents  was  paid  into  the  state 
treasury  for  pensions,  and  the  balance  was  retained 
and  disbursed  in  the  counties  for  school  purposes. 

III.  Inheritance  tax. 

Both  real  and  personal  property,  passing  by  will  or 
descent,  or  transfer  made  in  contemplation  of  death, 
where  the  decedent  was  a  resident  or  the  property  was 


762 


WEALTH,  DEBT,  AND  TAXATION. 


located  in  the  state,  is  subject  to  an  inheritance  tax  as 
follows : 

Where  the  share  is  from  $2,000  to  $5,000:  (a)  Lineal  issue  or  an- 
cestor, brother  or  sister,  75  cents  per  $100;  (b)  descendant  of  brother 
or  sister,  $1.50  per  $100;  (c)  brother  or  sister  of  father  or  mother,  or 
descendant  thereof,  $3  per  $100;  (</)  brother  or  sister  of  grandfather  or 
grandmother  or  descendant  thereof ,  $4  per  $100;  (e)  other  collaterals 
and  strangers,  $5  per  $100;  property  passing  to  the  husband  or  wife  of 
the  decedent,  or  for  religious,  charitable,  or  educational  purposes,  is 
exempt  from  tax  or  duty.  Where  the  share  is  from  $5,000  to  $10,000, 
these  rates  are  multiplied  by  1$;  where  from  $10,000  to  $25,000,  by2; 
where  from  $25,000  to  $50,000,  by  2\ ;  and  where  over  $50,000,  by  3. 

IV.  Corporation  taxes. 

On  every  corporation  doing  business  in  the  state  or  organized  under 
its  laws  (railroads,  banks,  building  and  loan  associations,  insurance  com- 
panies, telegraph,  express,  and  telephone  companies  excepted)  an  annual 
franchise  tax  is  imposed:  Capital  stock,  $25,000  or  less,  $5;  $25,000  to 
$50,000,  $10;  $.50,000  to  $100,000,  $25;  $100,000  to  $250,000,  $50; 
$250,000  to  $500,000,  $100;  $500,000  to  $1,000,000,  $200;  over 
$1,000,000,  $500.  Tax  on  land  companies  wlien  actual  value  does  not 
exceed  $10,000  is  $25. 

Railroads  pay  a  privilege  tax  according  to  gross  earnings  per  mile: 
$1,000  or  less  per  mile,  per  3'ear,  $2  per  mile;  $1,000  to  $2,000  per  mile, 
per  year,  $3  per  mile;  $2,000  to  $3,000  per  mile,  per  year,  $4  per  mile; 
over  $3,000  per  mile,  per  year,  $5  per  mile.  (No  county  or  town  tax.) 
Tax  is  to  be  paid  to  state  treasurer. 

Express,  telegraph,  and  telephone  companies  pay  a  license  tax  of  2 
percent  on  gross  receipts  within  the  state,  except  as  follows:  If  one- 
fourth  assets  invested  and  taxable  in  state,  tax  is  1J  per  cent;  if  one- 
half  assets  invested  and  taxable  in  state,  tax  is  1  per  cent;  if  three- 
fourths  assets  invested  and  taxable  in  state,  tax  is  one-half  of  1  per 
cent.     (No  county  or  city  tax  except  ad  valorem.) 

Insurance  companies  are  taxed  at  the  rate  of  2J  per  cent  upon  their 
gross  receipts  in  the  state  in  addition  to  the  license  and  ad  valorem 
property  tax.  But  if  one-fourth  of  the  assets  are  invested  in  property 
taxable  in  the  state,  the  tax  is  1  per  cent  on  gross  receipts  and  the  license 
is  one-half  of  the  amount  named.  If  the  amount  invested  is  three- 
fourths  of  the  total  assets,  the  tax  is  to  be  one-half  of  1  per  cent  and  the 
license  fee,  one-fourth  of  the  amount  named.  Companies  paying  these 
taxes  are  not  liable  for  the  tax  on  capital  stock,  and  no  county  or  mu- 
nicipality may  impose  any  additional  tax  or  fee. 

V.  Business  taxes  and  licenses. 

License  taxes  for  the  privilege  of  carrying  on  busi- 
ness are  levied  as  follows : 

Theaters — town  of  over  10,000  inhabitants,  $200;  town  of  5,000  to 
10,000,  $100;  town  of  2,500  to  5,000,  $50;  town  of  1,000  to  2,500,  $25; 
town  of  less  than  1,000,  $15  (one-half  goes  to  state,  one-half  to  county). 
Traveling  theatrical  companies,  per  exhibition,  $10;  circuses,  menager- 
ies, per  day,  $200;  side  shows,  per  day,  $50  (counties  may  fix  county 
tax  between  $200  and  $1,000).  Junk  dealers,  same  as  auctioneers;  horse 
dealers,  $25  (none  to  county);  peddlers  of  clocks,  stoves,  and  ranges, 
$50;  peddlers  of  eyeglasses  (per  county),  $10  (no  other  tax  by  town  or 
county).  Bicycle  dealers — town  of  12,000  inhabitants  or  over,  $10; 
town  of  less  than  12,000,  $5.  Dealers  in  theater  tickets,  $5;  commis- 
sion merchants,  brokers,  or  dealers,  $10;  ship  brokers,  $20:  pawnbrokers, 
$100;  attorneys,  physicians,  dentists,  and  oculists,  $5  (no  city  or 
county  shall  levy  additional  license).  Auctioneers— city  of  15,000 
inhabitants,  $20;  city  of  10,000  to  15,000,  $15;  city  of  5,000  to  10,000, 
$10;  city  of  1,000  to  5,000,  $5.  Real  estate  agents,  same  as  auctioneers. 
Dealers  in  fresh  meats,  same  as  auctioneers.  Wood  and  coal  dealers 
same  as  auctioneers.  Photographers,  lumber  dealers,  one-half  fee  for 
auctioneers.  Undertakers,  laundries,  steam  laundries,  same  as  auc- 
tioneers. Collecting  accounts, agency, $25;  dealer  in  secondhand  cloth- 
ing, $25;  livery  stables,  for  each  horse  or  mule  kept,  50  cents;  sewing 


machine  manufacturers,  $350;  feather  renovators,  per  county,  $10. 
Peddlers — on  foot,  per  county,  $10;  animal  or  vehicle,  per  county, 
$30.  Itinerant  salesman  with  stand,  per  county,  $100;  mercantile 
agencies,  $200  (no  town  or  county  tax) ;  gypsies,  or  fortune  tellers, 
$150;  lightning  rod  agents,  $20.  Hotels— less  than  $2  per  day,  per 
room,  25  cents;  over  $2  per  day,  per  room,  50  cents.  Cotton  com- 
presses, per  compress,  $.50.  Billiard  and  pool  tables — with  liquor,  $50; 
others,  $20.  Gift  enterprise,  prize  photographs,  $100;  slot  machines, 
$10;  slot  machines,  fixed  returns,  $2.50;  skating  rinks,  merrv-go- 
rounds,  etc.,  $20.  Stockbrokers — town  of  5,000  inhabitants,  $25;  town 
of  5,000  to  10,000,  $.50;  town  of  10,000  and  over,  $75.  State  banks, 
private  bankers,  etc.,  on  each  $1 ,000  capital  employed,  $1  (no  county, 
city,  or  town  tax) ;  agents  of  packing  houses,  $100.  Breweries  and 
agencies  of  breweries — brewery,  $200;  each  agency,  $50.  Oil  tanks, 
each  tank  over  500  gallons,  $20.  Dealers  in  futures — town  of  less 
than  5,000  inhabitants,  $50;  town  of  5,000  to  10,000,  $100;  town  of 
10,000  to  15,000,  $200;  town  of  over  15,000,  $300.  Liquor  dealers- 
less  than  5  gallons,  $50  per  six  months;  5  gallons  or  more,  $100  per  six 
months;  malt  liquors,  $25;  druggist  selling  liquors,  $50  per  year.  Grain 
distilleries,  where  liquor  is  sold — to  state,  $25;  to  county,  $25.  Social 
clubs, semiannual  tax,  per  member,  $1 :  malt  liquors  only,  per  member,  50 
cents  (liquor  license  taxes  are  to  be  applied  to  county  school  fund,  whether 
levied  by  state  or  county).  Merchants'  tax,  annual  license,  $1:  ulso 
on  sales  less  than  $500,  50  cents;  $500  to  $1,000,  $1;  $1,000  to  $2,000, 
$1.50;  $2,000  to  $5,000,  $2.50;  $5,000  to  $10,000,  $4;  $10,000  to  $20,000, 
$8;  $20,000  to  $40,000,  $12;  $40,000  to  $60,000,  $16:  $60,000  to  $80,000, 
$20;  $80,000  to  $100,000,  $24;  $100,000  to  $150,000,  $28;  $150-,000  to 
$200,000,  $30;  $200,000  to  $300,000,  $35;  $300,000  to  $500,000,  $40; 
$500,000  to  $750,000,  $50;  over  $1,000,000,  $70.  Dealers  in  pistols, 
bowie  knives,  etc.,  $10;  pianos  and  organs,  $10.  Cigarette  dealers — 
manufacturers,  under  250  millions,  $250;  250  to  500  millions,  $500; 
over  500  millions,  $1,000  (no  county  or  town  license);  retailers  of 
cigarettes,  $5.  Public  ferries,  bridges,  etc.,  1  per  cent  of  gross  receipts; 
purchase  tax,  liquor  dealers,  in  addition  to  ad  valorem  tax  on  stock  and 
license  tax,  2  per  cent  on  total  purchases  in  or  out  of  state;  emigrant 
agents,  $25;  itinerant  oculists,  $25;  trading  stamp  concerns,  per  county, 
$50;  marriage  licenses,  $1 .  Official  seals — great  seal  of  state,  $1 ;  seal  of 
state  department,  50  cents;  seal  of  state  treasurer,  50  cents.  Insurance 
companies'  license— life  insurance,  $250;  fire  insurance,  $200:  accident 
insurance,  $200;  marine  insurance,  $200;  surety  insurance,  $100:  plate 
glass  and  boiler  insurance,  $100;  domestic  mutual  insurance,  $50:  fra- 
ternal order  insurance,  $25;  bond, investment,  title  guarantee,  etc..  $100; 
other  companies,  $100. 

VI.  Income  tax. 

Taxpayers  are  required  to  show  on  their  lists  their 
gross  incomes  from  all  property  not  otherwise  taxed — 
state  or  United  States  bonds,  salary  and  fees,  annui- 
ties, trades  or  professions,  and  to  give  the  sources 
thereof.  Upon  the  excess  over  $1,000,  which  is 
exempted,  the  rate  of  tax  is  1  per  cent  on  the  gross 
income. 

B.    FEES. 

Certificate  of  incorporation,  per  $1,000  stock  authorized,  20  cents 
(minimum,  $25);  increase  of  capital  per  $1,000,  20  cents  (minimum, 
$20);  decrease  of  capital,  $20.  Private  bills  to  incorporate  are  taxed 
double  the  above  fees. 

County  Revenues. 

a.    TAXES. 

I.    The  general  property  tax. 
1.  Base — 
The  property  included  and  the  methods  of  assess- 


TAXATION  AND  REVENUE  SYSTEMS— NORTH  DAKOTA. 


763 


ment  and  of  equalization  are  the  same  for  county  as  for 
state  taxes. 

2.  Rate— 

The  rate  of  tax  is  determined  by  the  board  of 
county  commissioners.  Various  counties  are  author- 
ized to  levy  special  taxes  for  special  purposes.  The 
rate  may  never  exceed  double  that  of  the  state  tax, 
except  for  a  special  purpose  and  with  the  special 
approval  of  the  general  assembly. 

3.  Collection — 

The  method  of  collection  is  the  same  as  for  state 
taxes. 
II.  Poll  tax. 

Every  male  inhabitant  over  21  and  under  50  years 
of  age  may  be  subjected  to  a  poll  tax  equal  to  the  tax 
on  property  valued  at  $300  in  cash.  The  state  and 
county  capitation  tax  combined  is  never  to  exceed 
$2  per  capita.  (See  also  Poll  tax  under  State  revenue.) 
Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There  are  no  county  inheritance  or  special  corpora- 
tion taxes. 

V.  Business  taxes  and  licenses. 

In  any  case  where  a  specific  license  tax  is  levied  for 
the  privilege  of  carrying  on  any  business,  trade,  or 
profession,  the  county  may  levy  the  same  tax  as  the 
state  and  no  more. 

VI.  Income  tax. 

Counties  can  not  levy  an  income  tax. 

Municipal  Revenues. 

a.    TAXES. 

I.    The  general  property  tax. 

1.  Base — 

The  property  included  and  the  methods  of  assess- 
ment and  of,  equalization  are  the  same  for  municipal 
taxation  as  for  state. 

2.  Rate— 

No  municipal  corporation  is  to  levy  more  than  1 
per  cent  on  the  assessed  valuation. 


3.   Collection— 

The  method  of  collection  is  the  same  as  for  state 
and  county. 
II.  Poll  tax. 

The  aldermen  or  commissioners  may  levy  a  tax  on 
polls  taxable  by  the  general  assembly  for  state  pur- 
poses. 

Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There  are  no  municipal  inheritance  or  corporation 
taxes. 

V.  Business  taxes  and  licenses. 

The  corporate  authorities  may  tax  privileges  taxed 
for  state  and  count}'  purposes  and  all  persons  selling 
liquors,  except  druggists  (at  retail),  per  year,  $25. 
They  may  also  tax  dogs,  swine,  horses,  and  cattle 
running  at  large  within  the  corporate  limits. 

School  Revenues. 

The  property  and  poll  taxes  levied  by  the  state 
specifically  for  school  purposes  are  paid  by  the  sheriff 
to  the  treasurer  of  the  county  within  which  they  are 
collected.  The  income  of  the  permanent  school  fund 
and  $100,000  appropriated  by  the  legislature  from  the 
general  state  funds  is  apportioned  among  the  counties 
by  the  state  board  of  education  on  the  basis  of  school 
population.  The  state  makes  additional  annual  ap- 
propriations for  equalizing  school  facilities  in  the  sev- 
eral school  districts  to  enable  each  such  district  to 
maintain  schools  for  at  least  four  months  each  year. 
The  county  board  of  education  apportions  all  taxes 
and  other  school  moneys  coining  under  its  control 
among  the  various  townships  per  capita. 

If  the  state  tax  is  insufficient  for  the  support  of 
schools  in  each  school  district  for  four  months,  a 
special  tax  may  be  levied  by  the  county  on  all  prop- 
erty, credits,  and  polls. 

All  proceeds  of  fines,  penalties,  and  forfeitures,  all 
moneys  paid  as  exemption  from  military  duty,  and 
the  net  proceeds  of  licenses  to  liquor  sellers  and  to  auc- 
tioneers are  appropriated  to  the  public  schools. 


NORTH   DAKOTA.1 


North  Dakota  depends  almost  wholly  upon  the  gen- 
eral property  tax  for  state,  county,  and  municipal  rev- 
enues. There  are  no  inheritance  taxes  and  no  special 
corporation  taxes,  except  license  fees  on  sleeping  car 
and  express  companies,  and  a  tax  on  insurance  pre- 
miums which  goes  to  the  fire  companies. 

The  revenue  laws  were  revised  in  1903,  but  the 
changes  made  have  not  been  embodied  in  this  digest. 


'This  compilation  is  derived  mainly  from  the  following  sources: 
The  Revised  Codes  of  the  State  of  North  Dakota,  1899:    Trihune 
Company,  Bismarck,  N.  Dak.,  1899. 

Laws,  Legislative  Assembly,  North  Dakota,  1901:  Knight  &  Lather- 
warp,  Fargo,  N.  Dak.,  1901. 


CONSTITUTIONAL    PROVISIONS. 

AKTIOI.E    II. 

Sec.  174.  The  legislative  assembly  shall  provide  for  raising  revenue 
sufficient  to  defray  the  expenses  of  the  state  for  each  year,  not  to  ex- 
ceed in  any  one  year  four  (4)  mills  on  the  dollar  of  the  assessed  valuation 
of  all  taxable  property  in  the  state,  to  be  ascertained  by  the  last  assess- 
ment made  for  state  and  county  purposes,  and  also  a  sufficient  sum  to 
pay  the  interest  on  the  state  debt. 

Sec.  175.  No  tax  shall  be  levied  except  in  pursuance  of  law,  and 
every- law  imposing  a  tax  shall  state  distinctly  the  object  of  the  same,  to 
which  only  it  shall  be  applied. 

Sec.  176.  Laws  shall  be  passed  taxing  by  uniform  rule  all  property 
according  to  its  true  value  in  money,  but  the  property  of  the  United 


764 


WEALTH,  DEBT,  AND  TAXATION. 


States  and  the  state,  county,  and  municipal  corporations,  both  real  and 
personal,  shall  be  exempt  from  taxation;  and  the  legislative  assembly 
shall  by  a  general  law  exempt  from  taxation  property  used  exclusively 
for  school,  religious,  cemetery,  or  charitable  purposes  and  personal  prop- 
erty to  any  amount  not  exceeding  in  value  two  hundred  dollars  for  each 
individual  liable  to  taxation;  but  the  legislative  assembly  may,  by  law, 
provide  for  the  payment  of  a  per  centum  of  gross  earnings  of  railroad 
companies  to  be  paid  in  lieu  of  all  state,  county,  township,  and  school 
taxes  on  property  exclusively  used  in  and  about  the  prosecution  of  the 
business  of  such  companies  as  common  carriers,  but  no  real  estate  of 
said  corporation  shall  be  exempted  from  taxation  in  the  same  manner 
and  on  the  same  basis  as  other  real  estate  is  taxed,  except  roadbed, 
right  of  way,  shops,  and  buildings  used  exclusively  in  their  business  as 
common  carriers,  and  whenever  and  so  long  as  such  law  providing  for 
the  payment  of  a  per  centum  on  earnings  shall  be  in  force,  that  part  of 
section  179  of  this  article  relating  to  assessment  of  railroad  property 
shall  cease  to  be  in  force. 

Sec.  177.  All  improvements  on  land  shall  be  assessed  in  accordance 
with  section  179,  but  plowing  shall  not  be  considered  as  an  improvement 
or  add  to  the  value  of  land  for  the  purpose  of  assessment. 

Sec.  178.  The  power  of  taxation  shall  never  be  surrendered  or  sus- 
pended by  any  grant  or  contract  to  which  the  state  or  any  county  or 
other  municipal  corporation  shall  be  a  party. 

Sec.  179.  All  property,  except  as  hereinafter  in  this  section  provided, 
shall  be  assessed  in  the  county,  city,  township,  town,  village,  or  district 
in  which  it  is  situated,  in  the  manner  prescribed  by  law.  The  franchise, 
roadway,  roadbed,  rails,  and  rolling  stock  of  all  railroads;  and  the  fran- 
chise and  all  other  property  of  all  express  companies,  freight  line  com- 
panies, car  equipment  companies,  sleeping  car  companies,  dining  car 
companies,  telegraph  or  telephone  companies,  or  corporations  operated 
in  this  state,  and  used  directly  or  indirectly  in  carrying  persons,  prop- 
erty, or  messages,  shall  be  assessed  by  the  state  board  of  equalization  at 
their  actual  value,  and  such  assessed  valuation  shall  be  apportioned  to 
the  counties,  cities,  towns,  villages,  townships,  and  districts  in  which 
such  railroad  companies,  express  companies,  sleeping  car  companies, 
telegraph  and  telephone  companies  are  located  or  through  which  they 
are  operated,  as  a  basis  for  taxation  of  such  property,  in  proportion  to 
the  number  of  miles  of  such  property  within  such  counties,  cities,  towns, 
villages,  townships,  and  districts.  But  should  any  railroad  allow  any 
portion  of  its  roadway  to  be  used  for  any  purpose  other  than  the  opera- 
tion of  a  railroad  thereon,  such  portion  of  its  roadway,  while  so  used, 
shall  be  assessed  in  the  manner  provided  for  the  assessment  of  other  real 
property. 

Sec.  180.  The  legislative  assembly  may  provide  for  the  levy,  collec- 
tion, and  disposition  of  an  annual  poll  tax  of  not  more  than  one  dollar 
and  fifty  cents  on  every  male  inhabitant  of  this  state  over  twenty-one 
and  under  fifty  years  of  age,  except  paupers,  idiots,  insane  persons,  and 
Indians  not  taxed. 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  Township  assessor,  elected  annually  with  the  other  town  officers. 

(2)  City  assessor,  appointed  [in  each  even  numbered  year  by  the 
mayor,  with  the  approval  of  the  city  council. 

(3)  County  assessors,  in  counties  not  organized  into  civil  townships, 
elected  for  two  years. 

(4)  County  treasurer,  elected  every  two  years,  and  eligible  for  not 
more  [than  two  terms. 

(5)  Town  board  of  review,  composed  of  the  board  of  supervisors  of 
each  town,  the  president  and  auditor  of  each  incorporated  village,  and 
the  mayor,  auditor,  and  senior  alderman  from  the  several  wards  of  each 
city. 

(6)  County  board  of  review  and  equalization,  composed  of  the  board 
of  county  commissioners. 

(7)  State  board  of  equalization,  composed  of  the  governor,  state  audi- 
tor, state  treasurer,  attorney-general,  and  the  commissioner  of  agricul- 
ture and  labor. 


State  Revenues. 


A.    TAXES. 


I.    The  general  property  tax. 
1.  Base — 

a.  The  property  included  and  exempt. — All  real  and 
personal  property  in  this  state,  and  all  personal  prop- 
erty of  persons  or  corporations  residing  or  doing  busi- 
ness therein,  except  as  specially  exempted,  is  subject 
to  taxation. 

(1)  "Real  property,"  for  the  purposes  of  taxation,  includes  the  land 
itself,  whether  laid  out  in  town  lots  or  otherwise,  and  all  buildings, 
structures,  and  improvements  (except  plowing  and  trees  thereon),  and 
all  rights  and  privileges,  and  mines  and  quarries  appertaining  thereto. 

(2)  ' '  Personal  property ' '  includes  all  goods,  chattels,  credits,  moneys, 
and  effects  wheresoever  they  may  be;  all  ships,  boats,  and  vessels, 
whetherat  home  or  abroad,  and  all  capital  invested  therein;  all  moneys  at 
interest,  whether  within  or  without  the  state,  due  the  person  to  be  taxed, 
and  all  other  debts  due  such  persons;  all  public  stocks  and  securities:  all 
stock  in  turnpikes,  railroads,  canals,  and  other  corporations,  except  na- 
tional banks  out  of  the  state,  owned  by  inhabitants  of  this  state;  the 
income  of  any  annuity  unless  the  capital  of  such  annuity  be  taxed 
within  the  state;  all  improvements  made  upon  lands  held  under  laws  of 
the  United  States,  the  title  to  which  is  in  any  railroad  company  or  other 
corporation  not  subject  to  the  same  mode  and  rule  of  taxation  as  other 
property.  The  gas  and  water  mains  and  pipes  laid  in  roads,  etc.,  are 
personal  property. 

(3)  Exemptions,  in  addition  to  public  property,  are:  Schools,  acad- 
emies, colleges,  and  institutions  of  learning  with  the  books  and  furniture 
therein,  and  grounds  not  to  exceed  forty  acres  not  used  with  a  view  to 
profit:  churches;  cemeteries;  buildings  for  purely  public  charity;  public 
hospitals,  and  all  moneys  and  credits  of  each  institution;  and  personal 
property  of  each  individual  to  the  amount  of  $10. 

Exempted  property  is  to  be  assessed  and  valued  as  other  property. 

b.  Assessment. — There  is  but  one  assessment  for 
state,  county,  and  city  purposes.  All  counties  or  parts 
of  counties  not  organized  into  civil  townships  are  di- 
vided into  assessors'  districts ;  each  organized  civil  town- 
ship and  each  city  constitutes  such  a  district.  All 
property  is  assessed  annually  at  its  full  cash  value  on 
April  1,  and  the  district  assessor  is  to  determine  the 
true  and  full  value  of  each  tract  and  parcel  of  real  prop- 
erty by  actual  examination.  A  statement  of  personal 
property,  verified  by  oath,  is  to  be  made  by  the  owner, 
with  reference  to  the  value  on  the  1st  day  of  April. 
It  is  the  duty  of  the  assessor  to  fix  the  true  and  full 
value  of  all  items  of  personal  property  and  he  is  to  take 
as  a  basis  the  price  at  a  fair  voluntary  sale  for  cash. 
Refusal  to  list  or  swear  to  the  statement  is  to  be 
noted  by  the  assessor  and  prevents  any  application 
for  correction  of  the  assessment  as  made  by  the  as- 
sessor. Refusal  is  a  misdemeanor  and  a  false  list  is 
perjury. 

In  unorganized  counties  taxation  is  administered  by  the  county  to 
which  it  is  attached  for  judicial  purposes,  and  taxes  are  assessed  for 
state  purposes  only.  Stockholders  of  every  bank,  state  and  national, 
are  assessed  on  their  stock  where  the.  bank  is  located.  As  a  basis  for 
valuation  of  the  shares  the  assessor  is  to  deduct  the  amount  of  invest- 
ment in  real  estate  from  the  aggregate  amount  of  capital  and  surplus 
and  undivided  profits.  Corporations  are,  in  general,  assessed  as  indi- 
viduals, except  railways,  including  street  railways,  and  certain  other 
public  service  companies,  which  are  assessed  by  the  state  board  of 


TAXATION  AND  REVENUE  SYSTEMS— NORTH  DAKOTA. 


765 


equalization.  The  capital  stock  and  franchises  are  to  be  listed  where 
the  principal  office  is  located.  The  aggregate  amount  of  indebtedness, 
except  for  current  expenses,  not  paid  for  purchase  or  improvement  of 
property  and  the  value  of  real  and  personal  property  are  both  de- 
ducted from  the  market  value  of  the  shares  of  stock.  The  remainder 
is  then  listed  as  "bonds  and  stocks."  Such  stock  need  not  be  listed 
by  the  shareholder. 

The  state  board  of  equalization  assesses  the  franchise,  roadway, 
roadbed,  rails,  and  rolling  stock  of  all  railroads  operated  in  the  state. 
Apportionment  is  made  by  the  board  to  counties  according  to  mileage. 
The  county  auditor  apportions  the  valuation  to  the  cities,  towns, 
townships,  and  districts,  and  the  same  is  to  be  taxed  in  each  county 
as  personal  property. 

Express,  telegraph,  telephone,  freight  line,  and  equipment  compa- 
nies, and  sleeping  and  dining  car  companies  are  assessed  by  the  state 
board  of  equalization  on  their  franchise  and  property.  The  apportion- 
ment is  the  same  as  that  of  railroad  valuation. 

The  property  of  itinerant,  transient,  or  other  merchants,  salesmen, 
or  other  persons  and  of  all  merchants  and  salesmen  of  bankrupt  stock, 
etc.,  brought  into  the  state  after  the  regular  assessment,  is  to  be  as- 
sessed, when  found,  as  other  property. 

c.  Equalization. — The  town  board  of  review  equal- 
izes the  assessment  between  individuals  in  its  town 
or  district  and  supplies  omissions.  An  appeal  from  its 
decision  lies  to  the  district  court. 

The  county  board  of  review  and  equalization  equal- 
izes the  assessment  made  in  the  districts  not  embraced 
in  an  incorporated  city,  town,  village,  or  civil  township. 
This  board  also  equalizes  between  the  several  assess- 
ment districts,  but  it  is  not  to  reduce  aggregate  values 
of  the  county.  Town  and  municipal  officers  are  to 
advise  with  the  board. 

The  state  board  of  equalization  equalizes  between 
the  several  counties  of  the  state.  It  may  not  reduce 
the  aggregate  valuation  more  than  1  per  cent. 

2.  Rate— 

The  state  tax  is  levied  by  the  state  board  of  equaliza- 
tion and  is  to  be  the  amount  necessary  to  meet  the 
appropriation  of  the  legislative  assembly  and  the 
estimated  general  expenses  of  the  state.  The  rate  of 
the  general  state  tax  is  not  to  exceed  4  mills  on  the 
dollar. 

3.  Collection — 

Taxes  are  collected  by  the  county  treasurer  for  state, 
county,  city,  town,  school,  poor,  bridge,  road,  or  other 
purposes.  All  taxes  become  due  on  the  1st  day  of 
November  and  delinquent  on  the  1st  day  of  February, 
after  which  date  a  penalty  of  5  per  cent  attaches  to 
personal  property  taxes,  and  collection  may  be  en- 
forced by  distress  and  sale  of  such  property.  The 
penalty  on  real  property  taxes  is  3  per  cent  on  delin- 
quency, 3  per  cent  additional  on  the  1st  of  June,  and 
5  per  cent  more  on  the  1st  of  November.  Taxes  on 
real  property  are  made  a  perpetual  lien  upon  all  real 
and  personal  property  of  the  taxpayer,  either  owned 
when  the  tax  fell  due  or  subsequently  acquired.  Real 
taxes  are  enforced  by  sale. 
II  and  III.  Poll  tax  and  inheritance  tax. 

There  is  no  state  poll  tax  and  no  inheritance  tax. 


IV.  Corporation  taxes. 

Corporations  are,  in  general,  taxed  under  the  general 

property  tax. 

All  companies  other  than  railway  and  street  railway  corporations 
operating  railroads  in  the  state  are  required  to  pay  a  license  fee  of 
$100  per  annum  on  each  sleeping  car  operated  in  the  state,  provided 
that  the  aggregate  amount  of  such  license  fee  is  not  to  exceed  $5,000 
per  annum.  The  license  fee  is  to  be  paid  by  May  1.  Default  for 
thirty  days  incurs  a  penalty  of  25  per  cent. 

Sleeping  cars  operated  by  railroad  companies  as  a  part  of  their  rail- 
way equipment  are  exempt. 

Express  companies  doing  business  in  the  state  are  required  to  pay 
a  license  fee  of  $5  for  each  station,  city,  and  village  having  at  least 
200  inhabitants,  in  which  they  have  an  agent;  $10  for  those  of  from 
200  to  1,000  inhabitants;  $25  for  those  of  from  1,000  to  3,000  inhab- 
itants, and  $50  for  those  of  over  3,000  inhabitants.  The  license  is  to 
be  paid  by  August  1.  Penalty  for  violation  of  these  requirements  is 
a  fine  of  from  $200  to  $1,000. 

Every  insurance  company  doing  business  in  the  state  except  joint- 
stock  and  mutual  companies  organized  under  the  laws  of  the  state  is 
required  to  pay  to  the  commissioner  of  insurance  2J  per  cent  of  the 
gross  amount  of  premiums  received  in  the  state  for  the  year. 

The  old  gross  earnings  tax  on  railroads  was  declared  unconstitu- 
tional in  1891  ana  aoes  not  appear  in  the  later  codes. 

V.  Business  tuxes  and  licenses. 
The  following  are  annual  taxes: 

Commission  merchants,  $5;  public  warehouses — capacity  less  than 
10,000  bushels,  $2;  more  than  10,000  bushels,  $3;  ticket  agents,  $5. 

B.    FEES. 

By  secretary  of  state. — Filing  articles  of  incorporation  of  corporations 
for  profit,  $5:  other  corporations,  $2.  Certificate  of  corporate  exist- 
ence, $3;  commissions,  $3;  filing  notice  of  appointment  of  agent,  $3; 
certificate  of  increase  of  capital  stock,  $3. 

By  insurance  commissioner. — Insurance  companies — filing  articles 
of  incorporation  or  copies  thereof,  $25;  filing  annual  statement,  $2.50; 
certificate  of  authority,  $2.  There  is  also  the  usual  reciprocal  provision 
as  to  reciprocal  taxes,  licenses,  and  fees  upon  foreign  insurance  com- 
panies. 

By  state  treasurer. — Every  corporation  for  profit,  except  building 
and  loan  associations,  county  mutual  insurance  companies,  corpora- 
tions for  the  manufacture  of  dairy  produce  and  the  improvement  of 
breeds  of  stock,  and  agricultural  fair  corporations,  are  required  to  pay 
on  filing  articles  of  incorporation — first  $50,000  capital  stock  or  frac- 
tion thereof,  $50;  every  additional  $10,000  or  fraction  thereof,  $5;  in- 
crease of  capital,  every  $10,000,  $5. 

By  state  examiner. — Building  and  loan  associations — first  $100,000, 
$20;  each  additional  $100,000  or  fraction, $10.  Examination  of  banks, 
capital  $10,000  or  less,  $10;  capital  $10,000  to  $20,000,  $15;  capital 
$20,000  to  $40,000,  $20;  capital  $40,000  to  $60,000,  $25;  capital  $60,000 
to  $80,000,  $30;  capital  over  $80,000,  $35. 

By  secretary  of  state  board  of  pharmacy. — Druggists — annual  reg- 
istration fee  not  to  exceed  $3;  examination  fee,  $5. 

County  Revenues. 

a.    TAXES. 

I.    The  general  property  tax. 
1.  Base — 
The  property  included  and  the  methods  of  assess- 
ment and  of  equalization  are  the  same  for  county  as 
for  state  taxes. 


766 


WEALTH,  DEBT,  AND  TAXATION. 


2.  Rate— 

County  taxes  are  to  be  levied  in  specific  amounts  by 
the  county  commissioners,  and  are  to  be  based  upon  an 
itemized  statement  of  the  county  expenses  for  the  ensu- 
ing year  and  of  the  outstanding  indebtedness.  No 
greater  levy  is  to  be  made  than  will  equal  the  amount 
of  such  expense  plus  5  per  cent  of  such  amount,  to- 
gether with  the  amount  of  one  year's  interest  upon  and 
10  per  cent  of  the  principal  of  the  outstanding  debt. 

This  is  not  to  exceed  8  mills  on  the  dollar  for  ordinary  county  reve- 
nue, including  the  support  of  the  poor;  2  mills  on  the  dollar  for  a 
bridge  tax;  nor  2  mills  on  the  dollar  for  a  road  tax,  to  be  paid  in 
money  or  labor  at  the  rate  of  $1.50  per  day;  a  further  tax  of  not  to 
exceed  2  mills  on  the  dollar  for  emergency  purposes;  and  for  county 
sinking  fund  such  a  sum  as  will  pay  interest  for  one  year  and  10  per 
cent  on  the  principal,  or  as  fixed  by  the  legislative  assembly.  The 
commissioners  are  authorized  to  levy  2  mills  on  the  dollar  upon  all 
real  estate  in  the  county  for  destruction  of  gophers.  For  schools  the 
tax  is  2  mills  on  the  dollar. 

3.  Collection — 

Collection  of  county  taxes  is  the  same  as  that  of 
state  taxes. 
II.  Poll  tax. 

a.  Schools. — The  county  auditor  may  levy  a  tax  of 
$1  on  each  elector  in  the  county  for  the  support  of  the 
common  schools. 

b.  Roads  and  bridges. — A  poll  tax  of  $1.50  may  be 
levied  by  the  county  commissioners  on  every  male  per- 
son between  21  and  40  years  of  age  for  roads  and 
bridges.     This  can  be  paid  in  labor  in  lieu  of  money. 
Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There  are  no  inheritance  or  corporation  taxes. 
V.  Business  taxes  and  licenses. 

Ferries  are  leased  to  the  highest  bidder. 

Municipal  Revenues. 

a.   TAXES. 

I.    The  general  property  tax. 

1.  Base — 

The  property  included  and  the  methods  of  assess- 
ment and  of  equalization  are  the  same  for  all  township, 
town,  city,  and  school  district  taxes  as  for  the  state. 

2.  Rate— 

The  electors  at  the  annual  township  meeting  may 
vote  such  sum  for  the  repair  and  construction  of  roads 
and  bridges,  for  the  support  of  the  poor,  and  for  all 
township  charges  as  they  think  expedient.  The  road 
tax  is  not  to  exceed  5  mills;  nor  the  bridge  tax,  2  mills. 


Cities,  towns,  and  villages  having  not  less  than  3,000 
inhabitants  may  levy  taxes  as  follows: 

Interest  fund  for  bonds,  12  mills  on  the  dollar;  sinking  fund  for  bonds 
4  mills  on  the  dollar;  school  purposes  for  bonds,  20  mills  on  the  dollar; 
municipal  purposes  generally,  20  mills  on  the  dollar.  The  village  tax  is 
not  to  exceed  50  cents  on  $100. 

3.   Collection — 
The  collection  of  these,  as  of  state  taxes,  is  made  by 
the  county  treasurer,  for  which  he  retains  a  commis- 
sion of  1  per  cent. 

II.  Poll  tax. 

Every  male  inhabitant  above  21  and  under  50  years 
of  age,  except  paupers,  idiots,  and  lunatics,  is  to  be  as- 
sessed one  day's  labor  in  each  year. 

All  road  taxes  collected  from  residents  of  any  city, 
town,  or  village  by  the  treasurer  of  the  county  are  to 
be  turned  over  to  the  municipality. 

III.  Inheritance  tax. 

There  is  no  inheritance  tax. 

IV.  Corporation  taxes. 

Every  city,  town,  or  village  is  entitled  to  receive  2  per  cent  of  the 
insurance  premium  received  from  policies  on  property  therein,  as  col- 
lected by  the  state  treasurer,  for  the  support  of  its  organized  fire 
department. 

V.  Business  taxes  and  licenses. 

The  city  council  has  power  to  fix  the  amount,  terms,  and  manner 
of  issuing  licenses  to  hawkers,  peddlers,  pawnbrokers,  keepers  of  ordi- 
naries, theatrical  exhibitions,  shows  and  amusements,  ticket  scalpers 
and  employment  agencies,  hackmen,  omnibus  drivers,  carters,  cab- 
men, draymen,  porters,  expressmen,  watermen,  runners  for  public 
houses;  billiards,  bagatelle,  and  other  games  in  any  place  of  public 
resort;  auctioneers,  lumber  yards,  public  scales,  money  changers,  and 
brokers.     Dogs,  $2;  female  dogs,  $3.     Villages  have  the  same  powers. 

School  Revenues. 

The  state  tuition  fund,  composed  of  the  net  proceeds 
of  fines  and  penalties,  the  interest  and  income  from  the 
permanent  school  fund,  and  the  leases  of  school  lands, 
is  apportioned  among  the  counties  of  the  state  in  pro- 
portion to  the  number  of  children  of  school  age  and  in 
the  same  manner  among  the  several  school  districts  of 
the  county. 

Each  district  school  board  may  levy  a  tax  for  school 
purposes  upon  the  property  of  the  district  not  to 
exceed  30  mills  on  the  dollar. 

The  county  auditor  is  to  levy  a  tax  of  2  mills  on  the 
dollar  on  all  property  in  the  county  and  a  tax  of  $1  on 
each  elector  of  the  county,  both  of  which  are  appor- 
tioned to  the  school  districts. 


TAXATION  AND  REVENUE  SYSTEMS— OHIO. 


767 


OHIO.' 


Ohio  has  a  system  of  revenues  composed  of  the  gen- 
eral property  tax,  supplemented  very  largely  by  the 
state's  proportion  of  the  liquor  tax ;  by  so-called  excise 
taxes  on  corporations  engaged  in  public  service,  on 
domestic  and  foreign  corporations  engaged  in  business 
within  the  state,  and  on  insurance  companies;  and  by 
a  collateral  inheritance  tax  three-fourths  of  which 
accrues  to  the  state. 

The  effort  is  being  made  to  reduce  the  state  levy  on 
general  property  by  obtaining  sufficient  revenues  from 
the  other  sources  mentioned.  This  has  succeeded  to 
the  extent  that  in  1902  the  sum  of  $93,620  only  was 
levied  on  the  grand  duplicate  for  state  general  revenue 
purposes.  The  schools  are  still  a  charge  on  the  general 
property  tax.  A  peculiar  feature  of  the  Ohio  law  is 
the  permission  granted  to  the  county  commissioners  to 
employ  tax  inquisitors  to  ferret  out  evasions  of  taxes, 
these  inquisitors  being  paid  by  commissions  on  the 
amount  they  enable  the  government  to  recover. 

CONSTITUTIONAL    PROVISIONS. 

ARTICLE    X. 

Sec.  7.  The  commissioners  of  counties,  the  trustees  of  townships,  and 
similar  boards  shall  have  such  power  of  local  taxation  for  police  pur- 
poses, as  may  be  prescribed  by  law. 

ARTICLE    XII. 

Sec.  1.  The  levying  of  taxes  by  the  poll  is  grievous  and  oppressive; 
therefore,  the  general  assembly  shall  never  levy  a  poll  tax  for  county  or 
state  purposes. 

Sec.  2.  Laws  shall  be  passed,  taxing  by  a  uniform  rule  all  moneys, 
credits,  investments  in  bonds,  stocks,  joint-stock  companies,  or  other- 
wise; and  also,  all  real  and  personal  property,  according  to  its  true  value 
in  money;  but  burying  grounds,  public  schoolhouses,  houses  used  exclu- 
sively for  public  worship,  institutions  of  purely  public  charity,  public 
property  used  exclusively  for  any  public  purpose,  and  personal  property 
to  an  amount  not  exceeding  in  value  two  hundred  dollars  for  each  indi- 
vidual, may,  by  general  laws,  be  exempted  from  taxation;  but  all  such 
laws  shall  be  subject  to  alteration  or  repeal,  and  the  value  of  all  prop- 
erty so  exempted  shall  from  time  to  time  be  ascertained  and  published, 
as  may  be  directed  by  law. 

Sec.  3.  The  general  assembly  shall  provide  by  law  for  taxing  the 
notes  and  bills  discounted  or  purchased,  moneys  loaned,  and  all  other 
property,  effects,  or  dues  of  every  description  (without  deduction),  of 
all  banks  now  existing  or  hereafter  created,  and  of  all  bankers,  so  that 
all  property  employed  in  banking  shall  always  bear  a  burden  of  taxation 
equal  to  that  imposed  on  the  property  of  individuals. 

Sec.  4.  The  general  assembly  shall  provide  for  raising  revenue  suffi- 
cient to  defray  the  expenses  of  the  state  for  each  year,  and  also  a  suffi- 
cient sum  to  pay  the  interest  on  the  state  debt. 

Sec.  5.  No  tax  shall  be  levied,  except  in  pursuance  of  law;  and  every 
law  imposing  a  tax  shall  state  distinctly  the  object  of  the  same,  to  which 
only  it  shall  be  applied. 

Sec.  6.  The  state  shall  never  contract  any  debt  for  purposes  of  internal 
improvement. 

1  This  compilation  is  derived  mainly  from  the  following  sources: 
The,  Annotated  Revised  Statutes  of  the  State  of  Ohio,  by  Clement 
Bates.     Third  edition  of   1900,  fourth  edition  to  1904,  in  three  vol- 
umes.    Published  at  Cincinnati  in  1900  and  in  1903,  respectively. 

Tax  Laws  of  Ohio,  so  far  as  the  same  relate  to  the  assessment  of  per- 
sonal property  as  codified  and  revised  for  1903,  "  to  which  is  appended 
Revised  Instructions  to  County  Auditors  and  Personal  Property  .' 
ors  for  the  year  1903,  by  the  auditor  of  the  state." 


OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  The  district  assessors,  elected  annually  in  each  township  and  city 
ward,  or,  in  certain  cities,  appointed. 

(2)  The  county  auditors,  elected  for  a  term  of  three  years. 

(3)  The  state  auditor,  elected  for  a  term  of  four  years. 

(4)  The  state  board  of  appraisers  and  assessors,  composed  of  the  state 
auditor,  state  treasurer,  and  attorney-general. 

(5)  The  annual  county  (and  city)  boards  of  equalization,  each  com- 
posed of  the  county  commissioners  (the  general  governing  body  of  the 
county)  and  the  county  auditor;  (in  cities  the  board  is  composed  of  the 
auditor  and  a  number  of  citizens,  usually  six,  appointed  for  this  work  by 
the  city  council,  the  mayor,  or  the  board  of  tax  commissioners,  the  prac- 
tice varying  in  the  different  classes  and  grades  of  cities.) 

(6)  The  decennial  county  boards  of  equalization  for  real  estate,  com- 
posed of  the  annual  county  boards,  with  the  surveyor  added. 

(7)  The  decennial  state  board  of  equalization  for  real  estate,  com- 
posed of  as  many  persons  as  compose  the  state  senate,  and  elected  from 
the  senatorial  districts. 

(8)  The  annual  state  board  of  equalization  for  banks,  composed  of  the 
governor,  the  attorney-general,  and  the  state  auditor. 

(9)  The  annual  state  board  of  equalization  for  railroads,  composed  of 
the  state  auditor,  the  commissioner  of  railroads  and  telegraph  lines,  the 
attorney-general,  and  the  state  treasurer. 

(10)  The  county  treasurers,  elected  for  two  years,  who  collect  state, 
county,  and  local  taxes. 

(11)  Tax  inquisitors,  who  may  be  appointed  by  the  county  commis- 
sioners, together  with  the  county  auditor  and  treasurer,  to  search  for  and 
help  recover  taxes  that  have  been  evaded. 

State  Revenues. 

A.  TAXES. 

I.  The  general  property  tax. 
1.  Base — 
a.  The  property  included  and  exempt. — All  property 
;n  the  state,  whether  real  or  personal,  and  whether 
belonging  to  individuals  or  corporations,  and  all 
moneys,  credits,  investments  in  bonds,  stocks,  or 
otherwise,  of  persons  residing  in  the  state,  are  de- 
clared to  be  subject  to  taxation,  except  only  such  as 
may  be  expressly  exempted. 

(1)  "Real  property'' includes  not  only  land  itself,  with  all  things 
contained  therein,  but,  unless  otherwise  specified,  all  buildings,  im- 
provements, and  fixtures,  with  all  rights  and  privileges  pertaining 
thereto.  The  roadbed,  water  and  wood  stations,  and  such  other  realty 
as  is  necessary  for  the  daily  running  of  railroads  is  classed  as  personal 
property. 

(2)  "Personal  property"  includes  every  tangible  thing  being  the  sub- 
ject of  ownership,  whether  animate  or  inanimate,  other  than  money, 
and  not  forming  part  of  any  parcel  of  real  property,  as  hereinbefore 
defined;  the  capital  stock,  undivided  profits,  and  all  other  means  not 
forming  part  of  the  capital  stock  of  every  company,  whether  incor- 
porated or  unincorporated,  and  every  share,  portion,  or  interest  in  such 
stock,  profits,  or  means,  by  whatsoever  name  the  same  may  be  desig- 
nated, inclusive  of  every  share  or  portion,  right,  or  interest,  either  legal 
or  equitable,  in  and  to  every  ship,  vessel,  or  boat,  of  whatsoever  name 
or  description,  used  or  designed  to  be  used  either  exclusively  or  par- 
tially in  navigating  any  of  the  waters  within  or  bordering  on  this  state, 
whether  such  ship,  vessel,  or  boat  shall  be  within  the  jurisdiction  of 
this  state,  or  elsewhere,  and  whether  or  not  the  same  shall  have  been 
enrolled,  registered,  or  licensed  at  any  collector's  office,  or  within  any 


768 


WEALTH,  DEBT,  AND  TAXATION. 


collection  district  in  this  state;  the  money  loaned  on  pledge  or  mort- 
gage of  real  estate,  although  a  deed  or  other  instrument  may  have  been 
given  for  the  same,  if  between  the  parties  the  same  is  considered  as  | 
security  merely;  "the  gross  premium  receipts"  of  insurance  companies  ] 
for  the  calendar  year  previous  to  assessment,  less  dividends  of  surplus, 
cancellation  or  surrender  values,  and  commissions  paid  in  the  state,  is 
classed  as  the  personal  property  of  each  agency. 

"Money, "  or  "  moneys,  "  is  any  surplus  or  undivided  profits  held  by    | 
societies  for  savings  or  banks  having  no  capital  stock,  gold  and  silver 
coin,  bank  notes  of  solvent  banks,  in  actual  possession,  and  every  de- 
posit which  the  person  owning,  holding  in  trust,  or  having  the  bene- 
ficial interest  therein,  is  entitled  to  withdraw  in  money  on  demand. 

"Investment  in  bonds"  are  all  moneys  in  bonds,  or  certificates  of 
indebtedness,  or  other  evidences  of  indebtedness  of  whatever  kind, 
whether  issued  by  incorporated  or  unincorporated  companies,  towns, 
cities,  villages,  townships,  counties,  states,  or  other  incorporations,  or 
by  the  United  States,  held  by  persons  residing  in  this  state,  whether 
for  themselves  or  others.  The  courts  have  ruled  that  ''investments" 
in  exempted  property,  such  as  United  States  bonds  or  greenbacks, 
may  be  taxed  only  for  that  proportion  of  a  year's  taxes  which  corre- 
sponds to  that  proportion  of  the  whole  year  during  which  the  exempt 
property  was  not  held.  (See  Shotwell  v.  Moore,  129  U.  S.  Supreme 
Court,  590.) 

''Investment  in  stocks"  are  all  moneys  invested  in  the  capital  or 
stock  of  any  association,  corporation,  joint-stock  company,  or  other 
company,  the  capital  or  stock  of  which  is  or  may  l>e  divided  into 
shares,  which  are  transferable  by  each  owner  without  the  consent  of 
the  other  partners  or  stockholders,  for  the  taxation  of  which  no  special 
provision  is  made  by  law,  held  by  persons  residing  in  the  state,  either 
for  themselves  or  others;  shares  of  stock  in  Ohio  companies  taxed  on 
their  capital  stock  in  Ohio  are  not  included. 

"Credits"  are  the  excess  of  the  sum  of  all  legal  claims  and  de- 
mands, whether  for  money  or  other  valuable  thing,  or  for  labor  or 
services  due  or  to  become  due  to  the  person  liable  to  pay  taxes  thereon, 
including  deposits  in  banks  or  with  persons  in  or  out  of  this  state,  other 
than  such  as  are  held  to  be  money,  as  hereinbefore  defined  when  added 
together  (estimating  every  such  claim  at  its  true  value  in  money) 
over  and  above  the  sum  of  legal  bona  fide  debts  owing  by  such  person; 
but  in  making  up  the  sum  of  legal  bona  fide  debts  owing,  there  shall 
be  taken  into  account  no  obligation  to  any  mutual  insurance  company, 
nor  any  unpaid  subscription  to  the  capital  stock  of  any  joint-stock 
company,  nor  any  subscription  for  any  religious,  scientific,  literary,  or 
charitable  purpose;  nor  any  acknowledgment  of  any  indebtedness, 
unleas  founded  on  some  consideration  actually  received,  and  believed 
at  the  time  of  making  such  acknowledgment  to  be  a  full  consideration 
therefor;  nor  any  acknowledgment  made  for  the  purpose  of  diminish- 
ing the  amount  of  credits  to  be  listed  for  taxation:  Prorided,  That  pen- 
sions receivable  from  the  United  States  shall  not  be  held  to  be  credits. 
Both  credits  and  debts  are  to  be  estimated  at  no  larger  sum  than  it  is 
believed  can  be  collected  or  paid. 

(3)  Exemptions  consist  of  all  public  property,  and  property  used 
exclusively  for  or  belonging  to  or  included  under  the  following:  Armo- 
ries; cemeteries  and  companies  for  preserving  dead  bodies;  charities; 
churches;  fire  companies;  indigent  and  insurance  funds  of  certain 
secret,  religious,  and  charitable  societies;  certain  law  libraries;  per- 
sonal property  of  each  taxpayer  up  to  $100,  excepting  dogs;  public 
parks  containing  prehistoric  earthworks;  soldiers'  monuments. 

b.  Assessment. — In  general,  there  is  but  one  assess- 
ment for  state,  county,  and  municipal  taxes.  Certain 
classes  of  property,  notably  that  of  corporations,  are 
assessed  by  the  county  auditors  or  by  special  state 
boards,  and  generally  such  assessment  is  apportioned 
among  the  different  townships  to  which  it  properly  be- 
longs by  more  or  less  arbitrary  rules.  With  the  ex- 
ception of  real  estate  and  certain  other  minor  excep- 
tions, all  property  is  assessed  annually. 


Real  estate  is  assessed  but  once  every  ten  years  (last 
time  in  1900-1901),  the  assessment  so  made  remaining 
in  force  for  a  decade;  the  only  revision  being  by  the 
addition  each  year  of  new  construction,  or  the  deduc- 
tion of  buildings  destroyed,  when  over  $100  in  value. 
The  initial  assessment  of  real  estate  is  made  by  the 
district  assessor,  who  receives  from  the  county  auditor 
maps  and  an  abstract  showing  the  real  property  re- 
corded in  the  county.  He  returns  his  "lists"  to  the 
county  auditor.  The  "lists"  so  returned  are  in  tabu- 
lar form  and  contain  the  names  of  the  owners  and  the 
description  and  value  of  all  real  property.  There  are 
two  "lists,"  one  for  town  lots  and  one  for  acreage 
property.  Exempt  real  estate  has  to  be  listed  and 
valued.  Real  estate,  excluding  growing  crops,  is  as- 
sessed at  its  true  value  in  money,  and  not  at  the  price 
it  would  bring  at  auction  or  forced  sale.  The  assess- 
ment so  made  may  be  reviewed  by  the  county  auditor. 
The  assessor  "at  the  time  for  taking  the  lists  of  per- 
sonal property,  etc.,"  each  year  corrects  the  assess- 
ment of  real  property  by  adding  new  buildings  and 
deducting  property  destroyed  when  over  $100  in  value, 
and  by  correcting  errors  or  omissions  discovered. 
(See  Equalization.) 

Every  person  of  full  age  and  of  sound  mind  is  required  each  year  to 
list  all  taxables  in  his  possession.  He  is  required  to  take  oath  that 
the  property  so  "listed"  is  all  that  is  owned  b\'  him  or  under  his  control 
subject  to  taxation  on  the  second  Monday  in  April,  and  that  the  value 
affixed  to  each  item  is  "the  true  value  thereof  as  ascertained  by  the 
usual  selling  price  thereof  for  cash,  at  voluntary  sales  thereof  at  the  time 
and  place  of  listing,"  or  such  price  as  could  be  obtained  for  it  in  money  at 
such  sale.  Persons  claiming  to  have  nothing  to  list  must  take  oath  to  that 
effect.  In  case  a  person  refuses  to  list  his  taxable  property  or  refuses  to 
swear  to  the  list,  the  assessor  makes  return  of  such  property  as  he  can  find, 
and  the  auditor  raises  the  assessment  by  50  per  cent.  The  penalty  for 
a  false  return  is  an  assessment  at  50  per  cent  in  addition  to  true  value. 

All  officers  connected  with  the  assessment,  from  the 
assessor  up,  are  authorized  to  examine  persons  under 
oath  and  to  examine  books,  etc. 

The  county  auditor  is  required  to  call  together  once 
each  year  prior  to  the  assessment  all  the  assessors  in 
his  county  for  consultation  and  to  instruct  them  as  to 
uniformity. 

The  county  auditors  of  the  counties  through  which  any  railroad  runs 
constitute  a  board  of  appraisers  and  assessors  for  such  railroad.  The 
stationary  property  of  each  road  is  apportioned  among  the  townships, 
etc.,  through  which  it  passes,  and  the  rolling  stock  in  proportion  to  the 
mileage  in  each.  When  a  railroad  has  part  of  its  road  in  the  state  and 
part  in  another  state  the  board  is  required  to  take  the  value  of  all 
property  and  divide  it  in  the  proportion  which  the  road  in  the  state 
bears  to  the  whole,  apportioning  the  latter  among  the  counties,  etc.,  as 
aforesaid. 

Bank  shares  are  taxed  to  their  owners,  but  the  banks  report  to  the 
county  auditors  the  names,  residences,  and  the  number  of  shares  of 
stockholders,  together  with  the  resources  of  the  banks.  On  this  basis 
the  county  auditor  fixes  the  value  of  the  shares.  They  are  taxed  where 
the  bank  is  located.  Deposits  are  the  property  of  depositors  and  must 
be  listed  by  them  for  taxation,  while  the  bank  itself  must  list  and  pay 
taxes  on  the  surplus  and  undivided  profits,  real  estate,  and  furniture. 
An  attempt  to  value  national  bank  stocks  at  their  full  value  was  de- 
feated by  the  courts,  on  the  ground  that  "  the  systematic  and  intentional 


TAXATION  AND  REVENUE  SYSTEMS— OHIO. 


769 


valuation  of  all  other  moneyed  capital  by  taxing  official  i  far  Ixlow  its 
true  value,  while  the  shares  are  assessed  at  their  full  value,  is  a  violation 
of  the  act  of  Congress." ' 

The  property  of  corporations,  not  specially  provided  for,  is  re- 
turned to  the  county  auditors,  who  assess  it  and  apportion  the  total 
assessment  among  the  townships,  villages,  cities  or  wards  in  proportion 
to  the  real  property  of  the  corporations  within  each. 

The  following  classes  of  corporations  make  their  returns  to  the  state 
auditor  and  are  assessed  by  the  state  board  of  appraisers  and  assessors 
upon  the  basis  indicated,  the  assessment  also  being  apportioned  as 
indicated  below.  Express,  telegraph,  and  telephone  companies  are 
■Messed  on  that  proportion  of  their  total  property  which  is  used  in  the 
state,  by  rules  to  be  determined  by  the  state  board  of  appraisers  and 
assessors;  the  apportionment  for  express  companies  being  made  on 
the  basis  of  gross  earnings,  and  for  telegraph  and  telephone  companies 
on  the  basis  of  mileage  of  wire.  Freight-line  and  equipment  companies 
and  sleeping  car  companies  are  assessed  upon  the  amount  and  value 
of  that  proportion  of  the  capital  stock  which  represents  the  capital  and 
property  owned  and  used  in  Ohio,  the  guide  being  the  mileage  of  roads 
over  which  the  rolling  stock  is  run.  Entire  tax  is  paid  into  the  state 
treasury. 

The  following  peculiarities  in  procedure  should  be  noted: 

Merchants  and  manufacturers  are  assessed  upon  their  average  holdings 
throughout  the  year,  and  not  upon  what  they  may  happen  to  hold  on  tax 
day;  transient  traders  are  assessed  upon  that  proportion  of  their  stock 
which  the  time  they  are  present  bears  to  the  year,  and  may  be  assessed 
whenever  the}'  arrive;  thus,  a  trader  opening  a  shop  for  one  month  only 
pays  on  one-twelfth  of  his  stock,  whether  he  was  present  on  tax  day  or 
not. 

Dogs  are  listed  separately  and  need  not  be  valued  by  the  owner,  nor 
should  they  be  included  in  the  $100  of  exempted  personal  property.  A 
per  capita  tax  of  $1  on  each  male  and  spayed  female  and  $2  on  each 
unspayed  female  is  levied. 

The  county  commissioners,  the  county  auditor,  and  the  county  treas- 
urer in  any  county,  or  a  majority  thereof,  when  they  have  reason  to 
believe  that  there  has  not  been  a  full  return  of  property  within  the 
county  for  taxation,  shall  have  power  to  employ  any  person  to  make 
inquiry  and  to  furnish  the  county  auditor  the  facts  as  to  any  omissions 
of  property  for  taxation  and  the  evidence  necessary  to  authorize  him  to 
■abject  to  taxation  any  property  improperly  omitted  from  the  tax  dupli- 
cate; compensation  not  to  exceed  20  per  cent  of  taxes  recovered  may 
be  granted  by  above  authorities.  In  counties  containing  large  cities 
there  is  no  percentage  limit  on  compensation. 

c.  Equalization. — It  is  a  general  rule  that  the  aggre- 
gate value  returned  by  the  assessing  authorities  may 
not  be  reduced  by  process  of  equalization. 

Real  property  valuations  are  equalized,  first,  by  the 
decennial  county  boards  of  equalization  "so  that  each 
tract  or  lot  shall  be  entered  on  the  tax  list  at  its  true 
value."  Then  the  decennial  state  board  equalizes  the 
valuations  between  the  several  towns  and  counties. 
After  that  the  county  board  may  reconvene"as  a  "board 
of  revision,"  to  pass  upon  complaints  which  may  have 
been  filed  with  the  auditor.  The  changes  made  annu- 
ally in  the  assessment  of  real  property  are  equalized  by 
the  annual  county  boards. 

The  valuations  of  personal  property,  moneys,  credits, 
and  investments  are  equalized  annually  by  the  county 
or  the  city  boards  of  equalization. 

The  assessment  of  railroads  is  equalized  annually  by  the  state  board 
of  equalization  for  railroads. 

'This  decision  was  materially  changed  by  the  Supreme  Court  of  the 
United  States,  in  Lander,  Treas.,  v.  Mercantile  Bank,  186  U.  S.,  458. 


The  assessment  of  banks  is  equalized  annually  by  the  state  board  of 
equalization  for  incorporated  banks.  This  board  may  raise  or  lower  the 
aggregate  assessment  of  banks,  but  not  more  than  by  20  per  cent  in 
either  direction. 

2.  Rate— 

The  rate  for  state  taxation,  expressed  in  mills  upon 
each  dollar  of  the  assessed  valuation  of  property,  is 
fixed  each  year  by  the  general  assembly.  Should  the 
general  assembly  fail  to  fix  the  rate,  the  statutory  rates 
provided  for  each  of  the  several  funds  prevail.  The 
funds  for  which  such  rates  are  fixed  are: 

The  sinking  fund,  eighteen  one-hundredths  of  1  mill:  the  common 
school  fund,  ninety-live  one-hundredths  of  1  mill;  and  the  Ohio  State 
and  Miami  University  fund,  fifteen  one-hundredths  of  1  mill.  For  the 
past  two  years  the  income  has  been  sufficient  from  the  various  forms 
of  excise  taxes,  so  that  no  state  levy  for  "general  revenue"  has  been 
required. 

3.  Collection — 

The  lien  for  taxes  attaches  to  the  property  in  each 
year  on  the  day  preceding  the  second  Monday  in  April, 
except  bank  taxes,  which  attach  on  the  first  Monday  in 
May.  All  taxes,  state,  county,  and  local,  are  collected 
by  the  county  treasurer.  At  least  one-half  of  all  taxes 
and  all  of  the  road  tax,  must  be  paid  on  or  before  the 
20th  day  of  December,  the  remainder  on  or  before  the 
20th  day  of  June  next  ensuing.  The  penalty  for  de- 
linquency is  5  per  cent  (for  the  use  of  the  treasurer), 
and  if  the  first  installment  is  not  paid  when  due,  the 
whole  amount  becomes  delinquent  on  the  day  when  the 
first  was  due.  Delinquent  taxes  are  collected  by  dis- 
traint and  sale. 

In  case  of  taxes  on  real  estate  which  have  become  de- 
linquent by  failure  to  pay  one-half  on  the  20th  of  De- 
cember and  which  can  not  be  collected  by  distraint  and 
sale  of  personalty,  the  penalty  is  15  per  cent,  and  this, 
with  taxes  and  cost,  is  eventually  collected  by  sale  of 
the  property. 

II.  Poll  tax. 

Prohibited  by  the  constitution. 

III.  Inheritance  taxes  (repealed  in  1906). 
Direct  (declared  unconstitutional) : 

Base — (a)  A  direct  inheritance  tax  was  enacted  by  the  general  as- 
sembly of  the  state  of  Ohio  April  25,  1904  (97  O.  L.,  398,  400).  It  pro- 
vides that  the  right  to  succeed  to  or  inherit  property  within  the  juris- 
diction of  this  state,  *  *  *  whether  belonging  to  inhabitants  of 
this  state  or  not,  tangible  or  intangible,  including  annuities,  which  shall 
pass  by  will  or  by  the  inheritance  laws  of  the  state,  or  by  conveyance 
made  to  take  effect  in  possession  or  enjoyment  after  the  death  of  the 
grantor,  to  the  use  of  the  father,  mother,  husband,  wife,  brother,  sister, 
niece,  nephew,  lineal  descendant,  adopted  child,  or  person  recognized  as 
an  adopted  child  and  made  a  legal  heir,  or  the  lineal  descendant  thereof, 
the  lineal  descendant  of  any  adopted  child,  the  wife  or  widow  of  a  son, 
the  husband  of  a  daughter  of  a  decedent,  or  to  anyone  in  trust  for  such 
person  or  persons,  shall  be  taxed  upon  the  value  of  the  property  exceed- 
ing $3,000  succeeded  to  or  inherited  by  any  person,  2  per  cent  on  such 
excess;  such  tax  to  be  tiorne  by  the  person  so  succeeding  to  or  inheriting 
the  same. 

Such  tax  becomes  due  and  payable  immediately  upon  the  death  of 
the  decedent  and  at  once  lx-comes  a  lien  upon  the  property  subject  to 
such  tax. 


932—07 


-49 


770 


WEALTH,  DEBT,  AND  TAXATION. 


The  attorney-general  of  the  state  and  the  prosecuting  attorneys  of 
the  various  counties  are  charged  with  the  duty  of  collecting  such  tax. 

The  taxes  imposed  by  this  act  are  paid  into  the  state  treasury  by 
the  executors  or  other  persons  chaiged  with  the  payment  thereof  for  the 
use  of  the  state. 

All  property  within  the  jurisdiction  of  the  state,  and 
any  interests  therein,  whether  belonging  to  inhabitants 
of  the  state  or  not,  and  whether  tangible  or  intangible, 
which  shall  pass  by  will  or  by  the  intestate  laws  of  the 
state,  or  by  deed,  grant,  sale,  or  gift,  made  or  intended  to 
take  effect  in  possession  or  enjoyment  after  the  death 
of  the  grantor,  to  any  person  in  trust  or  otherwise,other 
than  to  or  for  the  use  of  the  father,  mother,  husband, 
wife,  brother,  sister,  niece,  nephew,  lineal  descendant, 
adopted  child,  or  person  recognized  as  an  adopted  child 
and  made  a  legal  heir,  or  the  lineal  descendants  thereof, 
the  wife  or  widow  of  a  son,  the  husband  or  daughter  of 
a  decedent,  is  subject  to  a  tax  of  5  per  cent  of  the  in- 
heritance above  .$200. 

Such  taxes  become  a  lien  on  the  property  upon  the 
death  of  the  decedent,  are  payable  into  the  county 
treasury,  and  if  not  paid  within  a  year,  the  prosecuting 
attorney  is  to  sue.  The  state  receives  75  per  cent  of 
the  tax. 

Property  passing  to  the  state  of  Ohio,  any  municipal 
corporation  or  other  political  subdivision  for  exclu- 
sively public  purposes,  or  to  any  public  institution  of 
learning,  public  charity,  or  other  exclusively  public 
purpose,  is  exempt. 

IV.  Corporation  taxes. 

All  corporations  are  taxed  under  the  general  prop- 
erty tax. 

Certain  classes  of  corporations  pay  an  additional  state  tax,  known 
as  an  excise  tax,  as  follows:  Railroads,  which  pay  one-half  of  1  per 
cent  of  that  part  of  their  gross  earnings  proportional  to  the  mileage 
in  Ohio;  express  companies,  which  pay  2  per  cent  of  their  gross  earn- 
ings less  what  is  paid  for  transportation  of  freight;  sleeping,  palace, 
chair,  dining,  and  buffet  car  companies,  and  freight  line  and  equip- 
ment companies,  which  pay  1  per  cent  on  the  excess  of  the  value  of 
that  proportion  of  their  capital  stock  for  Ohio  over  the  value  of  their 
real  estate;  electric  light,  gas,  natural  gas,  pipe-line,  waterworks,  street 
railroad,  and  messenger  or  signal  companies,  which  pay  1  per  cent  of 
their  gross  receipts  from  business  done  in  Ohio. 

Railroads  also  pay  the  expenses  of  the  state  railroad  commissioner's 
office,  not  to  exceed  $15,000,  which  is  apportioned  among  the  railroads 
in  proportion  to  net  earnings. 

Insurance  companies  are  assessed,  as  above  explained,  on  their  gross 
premiums  at  each  agency  as  if  on  personal  property.  The  tax  is  2$ 
per  cent  per  annum. 

The  assessments  for  the  excise  taxes  are  made  by  the  state  board 
of  appraisers  and  assessors,  and  the  taxes  are  collected  by  the  state 
treasurer. 

V.  Business  taxes  and  licenses. 

The  state  levies  license  taxes  on  auctioneers,  the  rate  being  fixed  in 
each  case  by  the  court  of  common  pleas.  Also,  duties  on  certain 
articles  sold  at  auction.  Also,  an  annual  license  tax  on  peddlers,  $12 
if  they  go  on  foot,  $20  if  with  one  horse,  $28  if  with  two  horses,  $60 
if  on  boat  or  train.  Also,  a  license  tax  on  itinerant  vendors  of  $25  per 
annum.  Also,  a  license  tax  on  the  manufacturer,  importer,  or  agents 
of  any  commercial  fertilizer  of  $20  annually  on  each  train.  This  is 
paid  directly  to  the  Ohio  state  board  of  agriculture. 


The  liquor  tax  (known  as  the  "Dow  law"):  Upon  the  business  of 
trafficking  in  spirituous,  vinous,  malt,  or  any  intoxicating  liquors, 
there  shall  be  assessed  yearly,  and  shall  be  paid  into  the  county  treas- 
ury, by  every  person,  etc.,  engaged  therein  and  for  each  place  where 
such  business  is  carried  on,  the  sum  of  $350.  The  tax  becomes  a  lien 
on  the  property  on  the  fourth  Monday  in  May  each  year,  and  is  paya- 
ble and  collectible  at  the  same  time  and  in  the  same  manner  as  the 
property  taxes.  Three-tenths  of  the  proceeds  are  paid  into  the  state 
treasury,  five-tenths  of  that  received  in  each  township  or  village  to 
the  township  or  village  treasury,  part  for  the  benefit  of  the  police  or 
poor  funds,  and  two-tenths  into  the  county  poor  fund. 

Dealers  in  cigarettes  and  cigarette  wrappers,  wholesale,  $30  annu- 
ally; retail,  $15  annually. 

B.    FEES. 

The  secretary  of  state  collects  on  copies  of  documents,  10  cents  per 
100  words;  on  seal,  50  cents;  and  from  testing  gas  meters,  $5.  The 
secretary  retains  $1,000  of  such  fees  collected  during  the  year  and 
pays  balance  into  state  treasury.  Fees  for  filing  the  articles  of  incorpo- 
ration— stock  under  $10,000,  fee  $10;  over  $10,000,  one-tenth  of  1  per 
cent,  the  same  amount  to  be  paid  as  an  annual  fee;  same  for  increase 
Mutual  or  other  companies  without  stock,  $25;  religious,  benevolent, 
or  literary  corporations,  $2;  building  and  loan,  $10;  increase  of  stock, 
$5;  certificate  of  reduction  of  stock,  any  corporation,  $5;  change  of 
name,  $5;  amending  articles  of  incorporation,  20  cents  per  100  words, 
minimum,  $5;  for  filing  or  copying  miscellaneous  other  documents,  $5, 
or  20  cents  per  100  words.  Foreign  corporations,  except  those  engaged 
in  interstate  commerce,  pay  above  fees  of  one-tenth  of  1  per  cent  on 
that  part  of  their  capital  stock  which  represents  property  owned  and 
used  and  business  transacted  in  Ohio,  the  same  to  be  paid  annually  to 
the  secretary  of  state,  and  paid  by  him  into  the  state  treasury. 

The  superintendent  of  insurance  collects  the  following  fees:  Filing 
copy  of  charter,  $25;  filing  annual  statements,  $20;  each  certificate  of 
authority  or  license,  $2;  each  copy  of  paper  filed,  20  cents  per  folio  and 
$1  for  seal.  Life  insurance  companies  pay  further  1  cent  per  $1,000 
insured  for  making  valuations  of  its  policies. 

Board  of  pharmacy  collects:  Examination  as  pharmacist,  $5;  exami- 
nation as  assistant  pharmacist,  $2. 

County  Revenues. 

a.   TAXES. 

I.  The  general  property  tax. 

1.  Base — 

The  property  subject  to  taxation  and  the  methods  ' 
of  assessment  and  of  equalization  are  the  same  for 
county  as  for  state. 

2.  Rate— 

The  rate  in  mills  on  each  dollar  of  assessed  valuation 
is  fixed  by  the  county  commissioners,  under  certain 
statutory  restrictions  as  to  the  maximum  amount  to 
be  levied  for  each  purpose,  except  for  the  state  and 
county  road  improvement  fund,  the  rate  for  which  is 
five-tenths  of  1  mill.  These  maximum  rates  vary 
with  the  amount  of  property  in  the  county.  Gen- 
erally these  rates  may  be  exceeded  only  by  sanction 
of  a  popular  vote. 

3.  Collection — 

The  same  as  for  state  taxes. 

II.  Poll  tax. 

There  is  no  county  poll  tax.  (See  Const.,  Art.  xn, 
sec.  1.) 


TAXATION  AND  REVENUE  SYSTEMS— OKLAHOMA. 


771 


III.  Inheritance  tax. 

The  county  receives  25  per  cent  of  the  collateral 
inheritance  tax.     (See  State  revenues,  a.  III.) 

IV.  Corporation  taxes. 

There  are  no  special  corporation  taxes  for  the  coun- 
ties. 

V.  Business  taxes  and  licenses. 

By  the  court  of  common  picas:  Ferries,  $2  to  $50  annually. 

By  the  county  auditors:  Traveling  or  temporary  shows,  circuses, 
etc.,  according  to  population  of  place  where  exhibited,  $25,  $40,  and 
$60  per  exhibition. 

Municipal  Revenues. 

A.    TAXES. 

I.    The  general  property  tax. 

1.  Base — 

The  property  subject  to  taxation  and  the  methods 
of  assessment  and  of  equalization  are  the  same  for 
municipal  taxation  as  for  state. 

2.  Rate— 

The  rate  in  mills  on  each  dollar  of  assessed  valuation 
is  fixed,  under  certain  statutory  restrictions  as  to  the 
maximum  rates  for  specified  purposes,  by  the  town- 
ship trustees,  the  trustees  of  hamlets,  or  the  city  coun- 
cil. These  rates  may  be  exceeded  by  popular  vote. 
Villages  may  levy  a  road  tax. 

3.  Collection — 

The  same  as  for  state  taxes,  except  that  in  certain 
townships  the  amount  levied  for  the  road  tax  may  be 
paid  in  labor  on  the  roads  at  the  rate  of  $1.50  per  day, 
which  labor  must  be  performed  before  the  1st  day  of 
September.  In  certain  cities  the  dog  tax  is  collected 
by  the  city  clerk. 


II.  Poll  tax. 

All  males  21  to  55  years  of  age  able  to  perform  or 
cause  to  be  performed  the  labor  (on  highways  within 
road  districts  and  cities) ,  except  honorably  discharged 
soldiers,  pensioners,  militiamen,  and  volunteer  fire- 
men, are  liable  for  two  days'  labor  each  year  on  the 
roads  or  in  cities  on  the  streets.  This  is  commutable 
into  a  tax  of  .13. 

Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There  are  no  municipal  inheritance  or  corporation 
taxes. 

V.  Business  taxes  and  licenses. 

The  council  of  any  city  or  village  may  license  and  fix  the  tax  on: 
Advertising  signs,  auctions,  automobiles,  ball  alleys,  billiard  tables, 
bill  posters,  bowling  alleys,  vendors  of  explosives,  ferries,  vehicles  for 
hire,  hawkers,  house  movers,  house  boats,  hucksters,  peddlers,  plumb- 
ers, goods  sold  on  street,  shows  and  exhibitions,  shooting  galleries, 
taverns,  theaters,  and  itinerant  vendors. 

School  Revenues. 

The  school  districts  in  Ohio  receive  an  apportion- 
ment from  the  state  school  fund,  which  is  supplied 
from  the  ad  valorem  tax  on  property  and  from  interest 
paid  by  the  state  on  certain  funds  created  by  the  sale 
of  school  lands  and  the  like;  also,  an  apportionment  of 
the  county  school  fund  into  which  flows  a  large  number 
of  miscellaneous  fines,  fees,  and  penalties  expressly 
devoted  to  the  support  of  the  schools.  In  addition  to 
these  there  may  be  levied  on  the  basis  of  an  estimate  by 
the  board  of  education  in  any  district  a  school  tax  not 
to  exceed,  in  general,  7  mills,  although  different  limits 
are  fixed  for  different  places. 


OKLAHOMA. 


Oklahoma  derives  its  revenues  mainly  from  the  gen- 
eral property  tax.  There  are  no  special  inheritance 
or  corporation  taxes..  Business  taxes  and  licenses  are 
left  to  the  cities  and  counties  and  the  poll  tax  is  levied 
for  road  purposes. 

ORGANIC    LAW. 

As  Oklahoma  is  a  territory,  there  are  no  constitu- 
tional limitations.  The  act  organizing  the  territory 
provides  as  follows : 

Sec.  6.  No  tax  shall  l>e  imposed  on  the  property  of  the  United  States, 
nor  shall  the  land  or  other  property  of  nonresidents  be  taxed  higher  than 
the  lands  or  other  property  of  residents,  nor  shall  any  unequal  discrimi- 
nation be  made  in  taxing  different  kinds  of  property,  but  all  property 
subject  to  taxation  shall  be  taxed  in  proportion  to  its  value:  Provided, 
That  nothing  herein  shall  be  held  to  prohibit  the  levying  and  collecting 
of  license  or  special  taxes  in  the  territory  from  persons  engaged  in  any 
business  therein  if  the  legislative  power  shall  consider  such  taxes  nec- 


OFFICERS. 


'This  compilation  is  derived  mainly  from  Wilson's  Revised  and  An- 
notated Statutes  of  Oklahoma,  1903,  by  \V.  F.  Wilson,  Guthrie,  Okla., 
1903:  State  Capital  Company. 


The  officers  most  directly  concerned  with  taxation 
are: 

(1)  Township  assessor,  elected  biennially.  All  towns,  cities,  and  vil- 
lages over  1,000  population  are  townships. 

(2)  County  assessor,  elected  for  two  years. 

(3)  County  treasurer,  who  is  ex  officio  collector  of  taxes,  elected  for 
two  years. 

(4)  Township  board  of  equalization,  composed  of  the  township 
assessor  and  township  treasurer.  The  town  or  city  assessor,  mayor,  and 
city  clerk  compose  a  board  of  equalization  for  cities,  towns,  and  villages. 

(5)  County  board  of  equalization,  composed  of  the  board  of  county 
commissioners  of  each  county. 

(6)  Territorial  board  of  equalization,  composed  of  the  governor,  ter- 
ritorial auditor,  and  secretary. 

Territorial  Revenues. 

a.   TAXES. 

I.    The  general  property  tax. 
1.  Base — 
a.    The  property  included  and  exempt. — All  property, 
real  and  personal,  not  specially  exempt  is  subject  to 
taxation. 


772 


WEALTH,  DEBT,  AND  TAXATION. 


(1)  and  (2)  "Real  property"  includes  all  real  estate,  land  acquired 
by  the  territory  on  credit  or  otherwise  ,|fcrry  franchises,  and  toll  bridges. 
All  other  property  of  any  kind,  except  improvements  upon  Government 
land  or  lots,  not  deeded,  is  also  subject  to  taxation. 

(3)  Exemptions,  in  addition  to  public  property,  are  property  of 
library,  scientific,  educational,  benevolent,  and  religious  institutions, 
colleges  or  societies,  not  exceeding  10  acres;  the  property  of  students 
used  for  their  education  in  such  institutions;  all  breaking,  wells,  or  fer- 
tilizing upon  lands  upon  which  final  proof  has  not  been  made;  family 
portraits;  provisions  of  a  family  for  one  year's  time;  pensions  until  paid; 
cemeteries  not  for  profit;  and  live  stock  brought  into  the  territory 
after  November  1  to  be  prepared  for  market. 

b.  Assessment. — There  is  one  assessment  roll  for  ter- 
ritorial, county,  and  municipal  purposes,  and  it  is  made 
up  for  real  and  personal  property  with  reference  to 
March  1  in  each  year.  Every  person  must  fill  out, 
under  oath,  a  list  of  his  property,  with  its  true  cash 
value.  For  refusal  to  make  a  list  the  assessment  is  for 
the  actual  value  and  50  per  cent  in  addition  as  a  pen- 
alty.    Returning  a  false  list  is  punishahle  as  perjury. 

Stocks  of  merchandise  and  personal  assets  of  banks,  including  money 
and  credits,  are  to  be  listed  at  the  average  during  the  year.  National 
bank  stock  is  to  be  assessed  at  its  par  value  and  where  the  bank  is 
located  as  of  February  1.  The  tax  may  be  collected  from  the  divi- 
dends, a  part  of  which  is  to  be  held  by  the  bank  for  taxes. 

Net  receipts  of  foreign  insurance  companies  are  to  be  assessed  where 
the  agency  is  located,  as  personal  property,  for  territorial,  county, 
town,  and  municipal  taxes,  and  are  subject  to  the  same  rate  of  taxa- 
tion as  personal  property. 

Corporations  are  taxed  as  individuals. 

Railroads  are  assessed,  by  a  board  of  railroad  assessors,  on  rolling 
stock  and  other  property,  except  real  estate  not  used  in  operation  of 
the  road  and  buildings  not  upon  the  right  of  way.  Such  real  estate 
is  assessed  like  other  real  estate.  The  assessment  is  made  with  refer- 
ence to  the  1st  of  February  and  is  on  the  basis  of  sworn  schedules,  and 
the  penalty  for  failure  to  make  such  a  return  is  $5,000.  The  assess- 
ment is  apportioned  to  the  counties,  townships,  cities,  and  school  dis- 
tricts according  to  the  mileage  of  main  track  in  each. 

All  sleeping,  dining,  palace,  or  other  cars  not  owned  by  the  railroad 
on  which  they  are  operated  are  to  be  listed  by  the  company  in  the 
name  of  the  owners,  and  are  assessed  by  the  board  of  railroad  assessors. 

Telegraph  and  telephone  lines  are  required  to  furnish  the  auditor  of 
the  territory  and  the  county  clerk  of  the  counties  where  such  lines  are 
operated  a  sworn  list  of  their  property  as  of  February  1,  under  a  penalty 
of  from  $500  to  $5,000  for  noncompliance. 

c.  Equalization. — The  boards  of  equalization  of  town- 
ships, and  of  cities,  towns,  and  villages,  equalize  indi- 
vidual assessments,  and  their  decision  is  final. 

The  county  board  of  equalization  equalizes  the 
assessment  roll  between  the  different  townships. 

The  territorial  board  of  equalization  equalizes  the 
assessment  as  between  the  counties.  The  board  can 
not  raise  or  lower  the  total  valuation  for  the  territory. 
2.  Rate— 

The  territorial  board  of  equalization  determines  the 
rate  of  territorial  tax  within  the  following  limitations: 

General  tax,  one-half  to  3  mills  on  the  dollar;  normal  school,  one-half 
mill  (Edmond);  normal  school,  one-half  mill  (Alva):  Oklahoma  Uni- 
versity, one-half  mill;  agricultural  college,  one-tenth  mill;  colored  agri- 


cultural college,  one-tenth  mill:  school  for  blind,  one-tenth  mill;  deaf 
and  dumb,  two-fifths  mill. 

The  territorial  tax  to  be  levied  by  the  counties  is  2  mills  on  the  dol- 
lar, unless  some  other  rate  is  fixed. 

3.  Collection — 
Taxes  are  collected  by  the  county  treasurer,  who  is 
required  to  be  at  the  county  seat  at  all  times  to  receive 
them.  They  are  payable  after  November  1,  and  no 
demand  is  necessary.  One-half  of  all  taxes  is  due  on 
June  15  arid  one-half  on  December  15  of  each  year; 
they  become  delinquent  on  the  third  Monday  in  Janu- 
ary following,  and  bear  interest  at  18  per  cent  per 
annum.  Delinquent  personal  taxes  are  to  be  collected 
after  the  second  Monday  in  March  by  distress  and  sale 
of  chattels,  and  after  the  third  Monday  in  October  real 
property  is  to  be  sold  for  the  payment  of  delinquent 
taxes. 

II.  Poll  tax. 

All  able-bodied  male  residents  between  21   and  50 
years  of  age  are  liable  each  year  to  perform  four  days' 
work  on  the  public  roads,  or  to  pay  $1  per  day  in  lieu 
thereof. 
Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There  are  no  county  inheritance  or  corporation  taxes. 
V.  Business  taxes  and  licenses. 

Domestic  insurance  company,  $10;  foreign  insurance  company,  $25; 
itinerant  vendors  of  drugs  and  persons  advertising  cures,  $100 — all 
annual. 

B.    FEES. 

By  secretary  of  the  territory. — Filing  articles  of  incorporation,  $5;  cer- 
tificate of  incorporation,  $3;  commissions  by  governor,  $1. 

By  commissioner  of  insurance. — Filing  declaration  or  copy  of  charter, 
$30;  filing  annual  statement,  $10:  certificates  to  agents,  $2. 

County  Revenues. 

a.    TAXES. 

I.  The  general  property  tax. 

1.  Base — 

The  property  included  and  the  methods  of  assess- 
ment and  of  equalization  are  the  same  for  county  taxes 
as  for  territorial. 

2.  Rate— 

The  rate  is  determined  by  the  county  commissioners 
by  comparing  the  assessed  valuation  with  an  esti- 
mate of  the  amount  to  be  raised,  to  which  is  added 
25  per  cent  for  delinquency. 

Levy  for  salaries,  determined  by  county  commissioners:  court  ex- 
penses, 3  mills;  poor  and  insane,  2  mills;  roads  and  bridges,  2  mills; 
county  supplies,  3  mills;  contingent  fund,  3  mills;  sinking  fund,  deter- 
mined by  county  commissioners. 

II,  III,  and  IV.  Poll  tax,  inheritance  tax,  and  corpora- 

tion taxes. 
There  are  no  county  poll,  inheritance,  or  corpora- 
tion taxes. 

3.   Collection — 
Same  as  for  territory. 


TAXATION  AND  REVENUE  SYSTEMS— OREGON. 


773 


V.  Business  taxes  and  licenses. 

Sale  of  liquor,  per  annum,  retail  license,  $200;  wholesale  license,  $100; 
ferries,  fixed  by  county  commissioners. 

Municipal  Revenues. 

a.    TAXES. 

I.  The  general  property  tax. 

1.  Base — 

The  property  included  and  the  methods  of  assess- 
ment and  equalization  are  the  same  for  municipal  as 
for  territorial  and  county  taxes. 

2.  Rate— 

The  rate  is  limited  to  5  mills  on  the  dollar  for  general 
revenue  purposes  in  cities  of  the  first  class,  and,  exclu- 
sive of  school  taxes,  is  not  to  exceed  4  per  cent  of  the 
taxable  property  of  the  city. 

3.  Collection — 

Same  as  for  territory  and  county. 

II.  Poll  tax. 

The  city  council  may  impose  a  poll  tax  not  exceed- 
ing $1  on  all  able-bodied  males  between  21  and  50 
years  of  age.  These  persons  are  also  liable  to  perform 
four  days'  work  on  the  roads  or  to  pay  $1  per  day  to 
any  road  overseer. 


Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There  are  no  municipal  inheritance  or  corporation 
taxes. 
V.  Business  taxes  and  licenses. 

The  city  council  has  authority  to  levy  a  license  tax  on  auctioneers, 
contractors,  druggists,  hawkers,  peddlers,  bankers,  brokers,  pawn- 
brokers, merchants  of  all  kinds,  grocers,  confectioners,  restaurants, 
butchers,  taverns,  public  boarding  houses,  dramshops,  saloons,  liquor 
sellers,  billiard  tables  and  other  gambling  tables,  bowling  alleys,  drays, 
hacks,  and  other  vehicles  used  in  the  city  for  pay,  real  estate  agents, 
express  companies,  life  and  fire  insurance  companies  or  agencies,  thea- 
ters, etc.  The  license  for  the  sale  of  liquors  is  from  $100  to  $500  per 
annum. 

School  Revenues. 

School  funds  of  the  territory  are  to  be  apportioned  to 
the  various  counties  in  proportion  to  school  popula- 
tion. The  |county  school  fund  consists  in  a  levy  not 
to  exceed  1  cent  on  the  dollar  of  the  taxable  property 
of  the  county,  which,  with  the  proceeds  of  all  moneys 
collected  from  fines,  forfeitures,  and  penalties,  money 
paid  as  exemption  from  military  duty,  and  money  col- 
lected from  marriage  licenses,  is  apportioned  to  the 
school  districts.  Additional  funds  may  also  be  pro- 
vided by  taxes  voted  in  the  school  districts. 


OREGON. 


Before  1903  Oregon  depended  almost  entirely  upon 
the  general  property  tax  for  state,  county,  and  munici- 
pal revenues,  there  being  but  few  special  corporation 
taxes.     An  inheritance  tax  was  added  in  1903. 

CONSTITUTIONAL    PROVISIONS. 
ARTICLE   I. 

Sec.  32.  No  tax  or  duty  shall  be  imposed  without  the  consent  of  the 
people  or  their  representatives  in  the  legislative  assembly ;  and  all  taxa- 
tion shall  be  equal  and  uniform. 

ARTICLE   IX. 

Sec.  1.  The  legislative  assembly  shall  provide  by  law  for  a  uniform 
and  equal  rate  of  assessment  and  taxation,  and  shall  prescribe  such  regu- 
lations as  shall  secure  a  just  valuation  of  all  property,  both  real  and  per- 
sonal, excepting  such  only  for  municipal,  educational,  literary,  scientific, 
religious  or  charitable  purposes,  as  may  be  specially  exempted  by  law. 

Sec.  2.  The  legislative  assembly  shall  provide  for  raising  revenue  suf- 
ficient to  defray  the  expenses  of  the  state  for  each  fiscal  year,  and  also  to 
pay  the  interest  on  the  state  debt. 

Sec.  3.  No  tax  shall  be  levied  except  in  pursuance  of  law,  and  every 
law  imposing  a  tax  shall  state  distinctly  the  object  of  the  same,  to  which 
only  it  shall  be  applied. 

Sec.  6.  Whenever  the  expenses  of  any  fiscal  year  shall  exceed  the 
income,  the  legislative  assembly  shall  provide  for  levying  a  tax  for  the 
ensuing  fiscal  year,  sufficient  with  other  sources  of  income,  to  pay  the 
deficiency,  as  well  as  the  estimated  expense  of  the  ensuing  fiscal  year. 


1  This  compilation  is  derived  mainly  from  the  Codes  and  Statutes 
of  Oregon,  compiled  and  annotated  by  Hon.  Chas.  B.  Bellinger  and 
Wm.  W.  Cotton,  and  published  by  authority  of  an  act  of  February  25, 
1901;  2  vols:  San  Francisco,  1902. 


article  IV. 

Sec.  23.  The  legislative  assembly  shall  not  pass  special  or  local  laws 
in  any  of  the  following  enumerated  cases — that  is  to  say,  *  *  * 
for  the  assessment  and  collection  of  taxes  for  state,  county,  township, 
or  road  purposes. 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  County  assessor,  elected  for  a  term  of  two  years;  made  four  years 
in  1903. 

(2)  Sheriff  of  the  county,  elected  for  two  years,  who  is  the  tax  collector 
thereof. 

(3)  The  county  board  of  equalization,  consisting  of  the  county  "judge, 
county  clerk,  and  assessor  of  each  county. 

(4)  The  "county  court,"  which  refers  to  the  board  of  county  commis- 
sioners in  counties  which  have  a  separate  board  for  county  business,  and 
the  county  judge  and  commissioners  in  other  counties.  There  are  two 
county  commissioners  in  each  county,  elected  for  four  years. 

State  Revenues. 

a.   TAXES. 

I.    The  general  property  tax. 
1.  Base — 
a.   The  property  included  and  exempt. — All  property, 
real   and   personal,  within    the   state,   not  expressly 
exempted,  is  subject  to  taxation. 

(1)  "Real  property"  includes  not  only  the  landitself,  but  also  all  build- 
ings and  fixtures  and  all  rights  and  privileges  appertaining  thereto. 

(2)  "Personal  property"  includes  all  goods  and  chattels,  all  vessels,  all 
debts  due  or  to  become  due  from  solvent  debtors,  all  shares  in  corpora- 


774 


WEALTH,  DEBT,  AND  TAXATION. 


tions,  and  such  portion  of  the  capital  of  corporations  as  shall  not  be 
invested  in  real  estate.  Transient  live  stock  being  driven  through  the 
state  is  assessed  as  personal  property.  (This  tax  on  live  stock  is  to  be 
immediately  collected  by  the  sheriff.) 

(3)  Exemptions  in  addition  to  public  property  are:  Property  used  for 
the  public  good,  as  that  of  literary,  benevolent,  charitable,  and  scientific 
institutions,  churches,  cemeteries,  public  libraries',  land  of  Indians  not 
citizens,  except  property  held  by  them  by  purchase;  personal  property 
of  every  householder  up  to  $300;  and  the  property  of  all  persons,  who  by 
reason  of  infirmity,  age,  or  poverty  may,  in  the  opinion  of  the  assessor,  be 
unable  to  contribute  toward  the  public  charges. 

b.  Assessment. — In  general,  there  is  but  one  com- 
plete assessment  roll  for  state,  county,  and  municipal 
taxes.  The  county  is  the  unit,  and  the  initial  assess- 
ment is  made  by  the  county  assessor.  All  property  is 
to  be  assessed  annually  with  reference  to  the- first  Mon- 
day in  March  at  its  true  cash  value,  that  is,  the  amount 
for  which  such  property  would  sell  at  a  voluntary 
sale  made  in  the  ordinary  course  of  business.  No  de- 
ductions from  assessments  are  allowed  on  account  of 
indebtedness.  It  is  the  duty  of  the  assessor  to  re- 
quire each  taxpayer,  under  a  penalty  of  $20,  to  fur- 
nish a  sworn  list  of  his  property,  but  such  list  is  not 
binding  upon  the  assessor,  but  is  merely  to  aid  him  in 
arriving  at  the  items  and  true  value  of  the  property  to 

be  assessed. 

» 

All  shares  in  banks  located  in  the  state  are  assessed  to  the  owners 
where  they  reside;  nonresident  stock  is  assessed  where  the  bank  is 
located. 

Shareholders  in  any  domestic  company  which  is  taxed  on  its  capital 
are  not  taxed  individually  for  the  stock. 

When  personal  property  is  mortgaged  or  pledged,  for  purposes  of  taxa- 
tion it  is  deemed  the  property  of  the  person  in  possession.  In  the  case 
of  land  the  mortgaged  premises  are  to  be  assessed  to  the  mortgagor,  and 
the  loan  to  the  mortgagee. 

c.  Equalization. — The  board  of  equalization  of  the 
county  equalizes  between  individuals  and  corrects  the 
assessment  roll  of  the  county.  The  county  court  is 
authorized  to  complete  the  equalization  as  to  unfinished 
matters  pending  before  the  board  at  the  time  of  ad- 
journment, and  also  to  examine  and  correct  the  roll*  in 
general. 

The  sheriff  as  tax  collector  has  power  to  remit  any 
excess  of  taxes  due  to  wrongful  assessment,  on  affidavit 
by  the  person  aggrieved. 

2.  Rate— 

All  regular  taxes  for  the  support  of  state  govern- 
ment are  apportioned  among  the  several  counties  on 
the  basis  of  the  average  expenditure  in  the  counties 
for  the  preceding  five  years. 

3.  Collection — 

The  amount  of  state  tax  apportioned  to  the  county 
is  to  be  levied  and  collected  in  the  same  manner  as  the 
county  taxes,  and  the  county  is  debtor  to  the  state  for 
this  amount.  One-half  is  to  be  paid  over  by  the  county 
treasurer  by  May  1  and  the  remainder,  by  Novem- 
ber 1. 


Collection  is  by  the  county  sheriff.  Taxes  on  real 
property  from  the  day  the  warrant  for  collection  is 
issued  to  the  sheriff,  and  all  taxes  are  to  be  paid  on  or 
before  the  first  Monday  of  April  following  the  levy, 
but  if  one-half  is  paid  at  that  time  the  remainder 
need  not  be  paid  till  the  first  Monday  in  October. 
For  payment  before  March  15,  a  rebate  of  3  per  cent 
is  allowed,  and  for  delinquency  a  penalty  of  10  per 
cent  is  charged,  with  interest  at  12  per  cent.  Delin- 
quent taxes  on  personal  property  may  be  collected  by 
the  sheriff  by  levy  and  sale,  and  those  on  real  property, 
by  sale  of  the  property. 

II.  Poll  tax. 

A  state  poll  tax  is  to  be  assessed  on  every  male  per- 
son between  21  and  50  years  of  age.  The  assessor 
must  require  every  person  to  pay  his  poll  taxes  at  the 
time  of  assessment,  and  in  default  to  give  a  list  of  the 
delinquents  to  the  sheriff,  who  is  to  collect  by  sale  of 
personal  property.  Under  the  practical  operation  of 
the  tax  laws  of  Oregon  the  proceeds  of  this  tax  accrues 
to  the  benefit  of  the  county. 

III.  Inheritance  tax. 

There  was  no  inheritance  tax  in  Oregon  in  1902. 

(In  1903  a  law  taxing  inheritances  was  enacted.  The  rate  on  direct 
heirs,  which  are  the  husband,  wife,  ancestors,  lineal  issue,  brothers  and 
sisters,  sons  and  daughters-in-law,  is  1  per  cent  on  the  excess  of  each 
share  over  $5,000,  estates  below  $10,000  being  exempt.  On  collateral 
heirs,  uncles,  aunts,  nephews,  nieces,  and  descendants,  the  rate  is  2  per 
cent  on  the  excess  of  each  share  over  $2,000.  Strangers,  $500  to  $10,000, 
3  per  cent;  $10,000  to  $20,000,  4  per  cent;  $20,000  to  $50,000  or  more, 
6  per  cent.) 

IV.  Corporation  taxes. 

Corporations  are  taxed  on  their  real  estate  and  per- 
sonal property,  in  the  same  manner  as  individuals. 
The  owner  of  stock  in  any  company  taxed  on  its 
capital  is  not  to  be  taxed  as  an  individual  for  his  stock. 
(In  1903  a  franchise  tax  was  imposed  on  both  foreign 
and  domestic  corporations,  graded  from  $10  to  $200, 
according  to  capital  stock.) 

The  railroads  are  taxed  on  the  valuation  of  their  general  property 
by  the  local  assessors.  "Rolling  stock"  is  apportioned  among  the 
several  counties  of  the  state  in  the  ratio  of  the  number  of  miles  in  the 
county  to  the  total  of  miles  in  the  state.  Every  county  assessor  is  to 
place  upon  such  rolling  stock  its  true  value  and  levy  a  tax  upon  the 
county's  proportion. 

Foreign  insurance  companies  are  to  pay  a  tax  of  2  per  cent  on  the 
amount  of  gross  receipts  from  business  done  in  the  state  less  losses  paid. 
This  tax  is  in  lieu  of  all  taxes  on  personal  property  and  shares  of  stock  of 
the  company.  Real  property  is  to  be  listed,  assessed,  and  taxed  as  that 
of  individuals. 

V.  Business  taxes  and  licenses.  > 

Agents  of  foreign  life  insurance  companies,  per  annum,  $100;  license 
to  each  life  insurance  company,  per  annum,  $100;  license  to  each  fire 
insurance  company,  per  annum,  $50;  license  to  each  accident  insurance 
company,  per  annum,  $100  (the  commissioner  of  insurance  receives  40 
per  cent  of  these  licenses);  foreign  insurance  company,  annual  state- 
ment, $5;  insurance  solicitors,  $5;  salmon  canneries  (eight  classes, 
according  to  number  of  cases  packed),  $100  to  $450. 


TAXATION  AND  REVENUE  SYSTEMS— OREGON. 


775 


B.    FEES. 

Secretary  of  state. — Certificate  of  deposit  by  foreign  corporation, 
recording,  $25;  issuing  license  to  life  insurance  agent,  $10. 

Insurance  commissioner. — Filing  power  of  attorney  by  company,  $5. 

Practice  of  medicine,  examination,  $10;  pharmacists,  examination, 
$5;  assistant  pharmacists,  examination,  $5;  dentists,  examination,  $10; 
barbers,  examination,  $5;  barbers,  registration,  $1. 

D.    INCOME    FROM    PUBLIC    PROPERTY. 

The  state  land  board  is  authorized  to  sell  all  lands  acquired  by  grant 
from  the  United  States  at  not  less  than  $1.25  per  acre ;  swamp  and  over- 
flowed lands,  $1  per  acre;  tidelands,  held  b3r  state  by  virtue  of  sov- 
ereignty, at  true  value.     (These  prices  were  changed  in  1903.) 

County  Revenues, 
a.  taxes. 

I.  The  general  property  tax. 

1.  Base — 

The  property  included  and  the  methods  of  assess- 
ment and  of  equalization  are  the  same  for  county 
taxation  as  for  state. 

2.  Rate— 

The  county  court  or  the  board  of  commissioners 
levies  the  tax  for  county  purposes,  together  with  the 
amount  of  state  and  school  tax  required  by  law  to  be 
raised  in  the  county  for  the  year. 

3.  Collection — 

The  collection  for  county  taxes  is  the  same  as  for 
state. 

II.  Poll  tax. 

a.  General. — For  county  purposes  a  poll  tax  of  $1 
is  to  be  assessed  upon  every  male  inhabitant  of  the 
state  between  the  ages  of  21  and  50  years.  Firemen 
are  exempt. 

b.  Road. — There  is  also  a  road  poll  tax  of  $3  per 
annum,  which  may  be  paid  in  labor. 

Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There  are  no  inheritance  or  special  corporation  taxes 
for  the  counties. 
V.  Business  taxes  and  licenses. 

Insurance  brokers,  quarterly,  $15.  The  county  court  requires 
licenses  from — keepers  of  billiard  tables  and  ball  alleys,  per  annum,  $50; 
dance  houses,  per  month,  $100;  peddlers,  per  annum,  $10  to  $200; 
public  shows,  each  performance,  $10  to  $500;  ferries,  per  annum,  $1  to 
$100;  liquor  licenses,  general,  per  annum,  $400;  liquor  licenses,  malt 
liquors  only,  per  annum,  $200. 

Municipal  Revenues. 

a.   TAXES. 

I.    The  general  property  tax. 
1.  Base — 
The    property   included    and    the    assessment    and 
equalization  thereof  are  in  general  the  same  as  for 
state  and  county  taxes.     In  preparing  the  tax  rolls  of 


the  several  counties  after  equalization  by  the  board  of 
equalization,  it  is  the  duty  of  the  clerks  of  the  county 
courts  to  compute  the  aggregate  valuation  in  each  of 
the  incorporated  towns  or  cities,  and  of  each  school 
district.  Town  and  school  levies  are  made  on  this 
valuation.  The  council  used  to  sit  as  a  board  of  equali- 
zation to  hear  complaints  in  towns  or  cities,  but  this 
has  been  superseded  in  the  new  system. 

2.  Rate— 

The  rate  is  determined  by  the  council  of  cities  and 
towns  which  levy  municipal  taxes  at  the  rate  pre- 
scribed by  their  charter.  In  cities  incorporated  under 
the  code  it  may  not  exceed  1  per  cent  of  the  assessed 
valuation.  The  individual  taxes  at  this  rate  are  then 
computed  by  the  clerk  of  the  county  court. 

3.  Collection — 

Collection  is  the  same  as  for  county  taxes. 
II.  Poll  tax. 

There  is  a  road  district  poll  tax  of  $3,  which  may  be 
paid  in  labor. 
Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There    are    no   inheritance    or   special    corporation 
taxes  for  the  municipalities. 
V.  Business  taxes  and  licenses. 

The  common  council  in  cities  and  towns  has  power 
to  license,  regulate,  and  control  any  lawful  business, 
trade,  occupation,  profession,  or  calling. 

Liquor  licenses  may  not  be  granted  for  a  less  sum  than  provided  by 
the  general  laws  of  the  state.     (See  under  County  revenues,  V.) 

School  Revenues. 

The  irreducible  school  fund  of  the  state  is  com- 
posed of  the  proceeds  of  the  sales  of  the  sixteenth  and 
thirty-sixth  sections  of  every  township  in  the  state; 
all  property  accruing  to  the  state  by  escheat  or  for- 
feiture; proceeds  of  the  sale  of  tidelands  or  sand 
islands;  all  the  proceeds  of  the  sale  of  500,000  acres  of 
land  granted  to  the  state  by  Congress;  and  certain 
other  miscellaneous  income.  The  interest  of  this 
fund,  which  is  to  be  loaned  out,  is  to  be  apportioned 
among  the  counties  in  proportion  to  the  number  of 
children.  The  county  superintendent  distributes  the 
county's  share  among  the  several  school  districts  of  Ids 
county. 

Each  county  of  the  state  is  to  be  divided  into  school 
districts.  The  county  courts  of  the  several  counties 
are  required  to  levy,  with  other  taxes,  a  tax  of  at  least 
5  mills  on  the  dollar  for  school  purposes  (amended  in 
1903).  This  school  tax  is  apportioned  to  the  dis- 
tricts. The  county  courts  are  also  required  to  include 
in  the  annual  levy  an  amount  sufficient  to  maintain  a 
county  high  school. 

The  district  meetings,  legally  called,  have  power  to 
levy  a  tax  not  to  exceed  5  per  cent  on  all  assessed  prop- 
erty. 


776 


WEALTH,  DEBT,  AND  TAXATION. 


PENNSYLVANIA. 


Pennsylvania  places  the  burden  of  taxation  for 
state  purposes  almost  wholly  on  corporations,  leaving 
the  property  of  individuals  subject  to  taxation  for  local 
purposes  only.  Mortgages,  bonds,  and  certain  other 
classes  of  personal  property,  however,  pay  a  state  tax, 
but  three-fourths  of  this  tax  is  returned  to  the  coun- 
ties to  relieve  the  burden  of  local  taxation.  Thus  the 
state  system  is  kept  separate  from  the  local  taxation. 
Corporations  are  taxed  by  state  officers,  except  on 
their  real  estate,  which  is  taxed  locally,  and  uniformity 
is  thus  secured.  Local  taxation  falls  principally  upon 
the  real  estate  of  individuals,  also  on  horses  and  cattle, 
occupations,  licenses,  and  certain  corporate  real 
estate,  as  that  of  manufacturing  companies,  but  not 
that  of  railroads  and  other  quasi  public  corporations. 

The  bulk  of  the  revenue  derived  from  retail  liquor 
licenses  goes  to  the  counties,  townships,  boroughs,  and 
cities. 

There  is  a  state  inheritance  tax  on  collateral  inher- 
itances. There  is  also  an  established  system  of  busi- 
ness taxes  and  licenses,  and  special  state  taxes  are 
levied  on  writs,  wills,  deeds,  and  certain  emoluments 
of  public  office.  Capital  stock  of  manufacturing  cor- 
porations is  exempt  from  taxation. 

In  counties  and  municipalities  all  offices,  posts  of 
profit,  professions,  trades,  and  occupations,  as  well  as 
single  freemen  following  no  calling,  are  assessed  along 
with  property,  but  there  appears  to  be  a  tendency  to 
change  these  taxes  into  a  uniform  poll  tax,  more  espe- 
cially for  school  purposes. 

CONSTITUTIONAL    PROVISIONS. 
ARTICLE  IX. 

Sec.  1.  All  taxes  shall  be  uniform  upon  the  same  class  of  subjects 
within  the  territorial  limits  of  the  authority  levying  the  tax,  and  shall  be 
levied  and  collected  under  general  laws;  but  the  legislative  assembly 
may,  by  general  laws,  exempt  from  taxation  public  property  used  for 
public  purposes,  actual  places  of  religious  worship,  places  of  burial  not 
used  or  held  for  private  or  corporate  profit,  and  institutions  of  purely 
public  charity. 

Sec.  2.  All  laws  exempting  property  from  taxation,  other  than  the 
property  above  enumerated,  shall  be  void. 

Sec.  3.  The  power  to  tax  corporations  and  corporate  property  shall 
not  be  surrendered  or  suspended  by  any  contract  or  grant  to  which  the 
state  shall  be  a  party. 

Sec.  9.  Any  county,  township,  school  district,  or  other  municipality, 
incurring  any  indebtedness,  shall,  at  or  before  the  time  of  so  doing,  pro- 
vide for  the  collection  of  an  annual  tax  sufficient  to  pay  the  interest,  and 
also  the  principal  thereof,  within  thirty  years. 

1  This  compilation  is  derived  mainly  from  the  following  sources: 

Brightly's  Purdon's  Digest,  1700  to  1894,  12th  edition;  compiled  by 
Frank  F.  Brightly,  esq. :  Kay  &  Bro.,  Philadelphia,  1894. 

Brightly's  Digest,  1893  to  1903;  F.  F.  Brightly:  Rees-Welsh  Com- 
pany, Philadelphia,  1905. 

Pepper  and  Lewis's  Digest,  1700  to  1894;  G.  W.  Pepper  and  Wm.  D. 
Lewis:  Philadelphia,  1896. 

Pepper  and  Lewis's  Digest  Supplement,  1894  to  1897. 

Taxation  in  Pennsylvania,  by  Frank  M.  Eastman. 

Acts  of  the  general  assembly  of  Pennsylvania  under  which  revenue 
is  collected.  Arranged  by  E.  B.  Hardenbergh,  auditor-general:  State 
Printer,  1904. 


ARTICLE    III. 


Sec.  1.  The  general  assembly  shall  not  pass  any  local  or  special  law: 
Exempting  property  from  taxation. 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  Township  and  borough  assessors,  elected  for  three  years. 

(2)  Assessors  in  counties  with  over  1,250,000  population,  appointed 
by  the  county  board  of  revision.  The  majority  political  party  is  to  be 
represented  to  the  extent  of  one-half  the  total  number.  One  assessor 
from  such  party  is  to  be  assigned  to  each  of  the  assessment  districts  of 
such  county. 

(3)  Assessors  in  cities  of  the  second  class,  five  residents,  elected  by  the 
city  council,  for  three  years. 

(4)  Assessors  in  cities  of  the  third  class,  three  residents,  elected  by  the 
people  by  wards,  for  three  years. 

(5)  Board  of  revision  of  taxes  in  cities  of  the  third  class,  five  residents, 
elected  by  the  city  council,  for  three  years. 

(6)  City  treasurers  in  cities  of  the  third  class,  elected.  They  are  col- 
lectors of  all  city,  school,  and  poor  taxes  of  the  city. 

(7)  Collectors  of  state  and  county  taxes,  appointed  by  the  commis- 
sioners of  the  county,  for  one  or  more  wards  in  cities  of  the  third  class. 

(8)  Collectors  for  cities,  townships,  and  boroughs,  elected  generally 
for  a  term  of  three  years. 

(9)  Board  of  revision  in  counties,  composed  of  the  county  commis- 
sioners. This  board  acts  as  a  board  of  equalization.  In  Philadel- 
phia the  court  of  common  pleas  appoints  three  persons  who  constitute  a 
board  of  revision. 

(10)  State  board  of  revenue  commissioners,  composed  of  the  auditor- 
general,  state  treasurer,  and  secretary  of  the  commonwealth. 

State  Revenues. 

a.  TAXES. 

v 

I.    The  general  property  tax. 
1.  Base — 

a.  The  property  included  and  exempt. — Property 
subject  to  this  tax  for  state  purposes  is  limited  to  cer- 
tain classes  of  intangible  personalty  and  vehicles  for 
hire. 

"  Intangible  personalty  "  includes  all  mortgages,  all  money  owing  by 
solvent  debtors,  all  articles  of  agreement,  and  accounts  bearing  interest; 
all  public  loans  except  those  of  the  state  or  of  the  United  States;  all 
loans  issued  by  or  shares  of  stock  in  any  bank,  corporation,  or  company, 
including  car  trust  securities,  bonds,  or  other  evidence  of  indebtedness, 
except  shares  of  stock  in  any  company  liable  to  the  capital  stock 
tax;  all  moneys  loaned  or  invested  outside  the  state;  all  other  moneyed 
capital  in  the  hands  of  individual  citizens  of  the  state;  and  all  annui- 
ties yielding  annually  over  $200.  Bank  notes  and  notes  discounted  or 
negotiated  by  any  banking  institution;  building  and  loan  associations; 
pleasure  carriages:  and  horses,  mules,  and  cattle  are  exempt. 

Under  "vehicles"  are  included  all  stages,  omnibuses,  hacks,  cabs, 
and  other  vehicles  used  for  transporting  passengers  for  hire,  except 
steam  and  street  cars. 

b.  Assessment. — The  assessment  is  made  by  the  local 
assessors  of  the  several  townships,  boroughs,  and  cities 
of  the  respective  counties.  Sworn  lists  are  to  be  made 
by  the  taxpayers  of  the  different  classes  of  personal 
property  subject  to  the  state  tax.  False  returns  are 
punishable  by  a  fine  of  $500  and  imprisonment  not  ex- 
ceeding seven  years,  while  50  per  cent  is  added  for 


TAXATION  AND  REVENUE  SYSTEMS— PENNSYLVANIA. 


777 


refusal  to  make  return.  The  recorder  of  deeds  and 
mortgages  is  to  keep  a  daily  record  of  every  mortgage 
or  agreement  given  to  secure  the  payment  of  money 
and  file  the  same  with  the  board  of  revision  of  taxes 
(county  commissioners).  The  prothonotary  or  clerk 
of  the  court  of  common  pleas  in  each  county  is  to  keep 
records  of  judgments,  bills,  bonds,  etc.,  entered  in  his 
office,  and  file  the  same  with  the  board  of  revision. 
Mortgages  and  judgments  held  by  nonresidents  are  to 
be  certified  to  the  proper  county.  Statements  of  these 
securities  are  in  turn  to  be  furnished  the  assessors  and 
compared  with  returns. 

Railroads  and  other  transportation  and  transmission  companies  are 
assessed  for  state  purposes  only  on  such  property  as  is  not  essential  to 
operation  or  the  exercise  of  their  franchise.  They  are  exempt  from  all 
local  taxation  on  such  property  as  is  essential  to  operation,  such  as 
railroad  tracks,  rolling  stock,  stations,  telegraph  lines,  etc.,  except  rail- 
road property  in  Philadelphia  and  Pittsburg.  The  tax  on  capital  stock 
exempts  them  from  taxes  on  personal  securities.  Transportation  com- 
panies are  thus  taxed  under  the  general  corporation  taxation  and  pay 
little  in  the  way  of  state  or  local  taxes  on  property.  They  are  taxed 
principally  on  capital  stock,  gross  receipts,  and  domestic-held  bonds, 
and  by  the  bonus  on  charters. 

c.  Equalization. — The  board  of  revision  corrects 
and  equalizes  the  assessments  made  by  each  assessor 
in  the  county  upon  mortgages,  credits,  stocks,  loans, 
investments,  etc.,  as  well  as  other  property  taxable 
for  county  purposes. 

The  board  of  revenue  commissioners  equalizes  the 
assessments  of  taxes  for  the  use  of  the  state  among  the 
several  cities  and  counties  in  proportion  to  actual 
value,  and  any  county  considering  itself  aggrieved  by 
increase  in  valuation  of  personal  property  liable  to 
state  tax  and  the  quota  of  tax  due  may  appeal  to  the 
court  of  common  pleas  of  Dauphin  county. 

2.  Rate— 

The  rate  of  the  personal  property  tax  for  state  pur- 
poses is  4  mills  on  the  dollar. 

3.  Collection — 

Collection  is  to  be  made  by  the  collectors  of  the 
several  counties  and  cities.  Counties  are  responsible 
for  collection  and  settlement  is  to  be  completed  with 
the  state  treasurer  by  the  second  Monday  of  Novem- 
ber, or  in  default  thereof  10  per  cent  penalty  is  added 
to  taxes  remaining  unpaid.  The  city  and  county 
treasurers  are  permitted  to  retain  their  commissions 
for  collection.  Three-fourths  of  the  net  amount  of 
tax  is  to  be  returned  by  the  state  treasurer  to  the 
counties  for  their  own  use  in  payment  of  expenses 
incurred  in  assessment  and  collection. 

II.  Poll  tax. 

There  is  no  state  poll  tax. 

III.  Inheritance  tax. 

All  estates  situated  within  the  state,  real  or  per- 
sonal, whether  the  decedent  be  domiciled  within  or 
without  the  state,  and  estates  situated  without  the 
state  when  the  decedent  is  domiciled  within  the  state, 
passing  by  will,  descent,  or  transfer  made  in  contem- 


plation of  death,  other  than  to  the  father,  mother, 
husband,  wife,  children,  and  lineal  descendants,  or  the 
wife  or  widow  of  a  son,  are  subject  to  a  tax  of  $5  on 
every  $100  of  clear  value,  for  the  use  of  the  state. 
Estates  of  less  value  than  $250  are  not  subject  to  the 
tax. 

IV.   Corporation  taxes. 

Corporations  are  subject  to  both  state  and  local 
taxation. 

The  local  taxation  of  a  corporation  is  like  that  of  an 
individual  and  includes  taxes  on  tangible  property. 
Public  service  companies,  however,  are  exempt,  not  by 
statute,  but  by  judicial  decision,  from  local  taxation 
on  property  used  in  their  business,  except  that  by 
statute  the  real  estate  of  railroads  is  subject  to  local 
taxation  in  Philadelphia  and  Pittsburg.  Public  serv- 
ice companies  include  railroad,  canal,  and  telegraph 
companies,  natural  and  artificial  gas  companies,  elec- 
tric light  companies,  street  railway  companies,  etc. 
(Eastman,  Private  Corporations  in  Pa.,  3655.) 

Manufacturing  companies,  except  those  manufac- 
turing liquors,  are  exempted  from  taxation. 

Aside  from  the  bonus  on  charters,  paid  once  only  at 
the  time  of  beginning  business  or  increasing  stock,  all 
public  service  corporations,  and  a  number  of  others, 
pay  in  general  three  taxes  to  the  state :  (a)  On  capital 
stock,  5  mills;  (6)  on  the  interest  paid  on  loans,  4  mills; 
(c)  on  the  gross  earnings,  8  mills. 

The  exceptions  are  set  forth  in  detail  below : 

Bonus  on  charters. — Except  building  and  loan  associations  and  cor- 
porations of  the  first  class,  every  domestic  corporation  is  to  pay  to  the 
state  treasurer  at  the  time  of  beginning  business  or  increasing  stock, 
for  the  privileges  conferred  in  its  charter,  a  bonus  of  one-third  of  1  per 
cent  upon  the  authorized  amount  of  its  capital  stock;  and  the  charter 
is  forfeited  for  nonpayment  of  such  bonus. 

Foreign  corporations,  except  insurance  companies,  are  subject  to  the 
same  conditions  and  bonus  upon  their  capital  employed  wholly  within 
the  state. 

Tax  on  capital  stock. — The  ordinary  tax  imposed  by  the  state  upon 
corporations  is  that  upon  capital  stock.  Every  corporation,  joint-stock 
association,  or  company  having  capital  stock,  and  every  foreign  corpo- 
ration, except  banks,  savings  institutions,  and  foreign  insurance  com- 
panies, are  required  to  pay  an  annual  tax  of  5  mills  on  each  dollar  of 
capital  stock.  The  assessment  is  made  on  the  basis  of  reports  which 
give  an  estimate  of  the  value,  which  is  to  be  not  less  than  the  average 
price  for  which  the  stock  was  sold  and  not  less  than  the  value  indicated 
by  the  net  earnings.  The  auditor-general  and  the  state  treasurer  may 
revise  this  valuation.  The  corporations  are  not  required  to  pay  any 
further  tax  upon  mortgages,  bonds,  and  other  securities  owned  by  them 
in  their  own  right,  but  the  value  of  real  estate  taxed  locally  is  not  to 
be  deducted.  The  tax  on  capital  stock  does  not  apply  to  that  of  manu- 
facturing companies  used  in  the  state,  except  brewing  and  distilling 
companies  and  such  as  exercise  the  right  of  eminent  domain.  Foreign 
corporations  are  taxed  only  on  the  portion  of  capital  stock  employed  in 
the  state,  and  the  same  is  true  of  domestic  corporations.  Fixed  capital 
employed  in  business  outside  the  state  is  deducted.  The  tax  on  capital 
stock  is  thus  a  tax  on  the  company's  property  and  assets,  together  with 
the  franchises,  privileges,  good  will,  and  earning  capacity. 

The  tax  on  fire  and  marine  insurance  companies  is  at  the  rate  of  3  mills 
on  each  dollar  of  actual  value  of  the  whole  capital  stock. 

A  tax  of  4  mills  on  the  dollar  of  actual  value  is  imposed  on  shares  of 
every  bank  and  savings  institution  incorporated  under  the  laws  of  the 


778 


WEALTH,  DEBT,  AND  TAXATION. 


state  or  of  the  United  States.  The  shares  are  assessed  by  the  auditor- 
general  by  adding  together  the  amount  of  stock  paid  in,  the  surplus, 
and  undivided  profits,  on  the  basis  of  reports  by  the  bank.  The  bank  is 
to  pay  within  forty  days,  under  50  per  cent  penalty.  Banks  paying  by 
the  1st  of  March  are  exempt  from  local  taxation  on  their  shares  and 
capital  and  profit  not  invested  in  real  estate.  The  bank  has  the  op- 
tion of  collecting  10  mills  on  the  par  value  of  all  its  shares  from  the 
shareholders  and  paying  the  same  in  lieu  of  local  taxation,  except  on 
real  estate. 

All  "full  paid,  prepaid,  or  fully  matured"  stock  in  any  building  and 
loan  association  upon  which  cash  dividends  are  paid  are  required  to 
pay  a  state  tax  equal  to  that  on  moneys  at  interest  by  the  tax  laws  of 
the  state,  viz,  4  mills  on  the  dollar.  Such  tax  is  to  be  deducted  from 
the  cash  dividend  or  interest  and  paid  to  the  treasurer  of  the  state. 

Distilling  companies  are  subject  to  a  state  tax  of  10  mills  upon 
each  dollar  of  the  actual  value  of  the  whole  capital  stock.  The  auditor- 
general  assesses  the  value  upon  reports  by  the  corporation. 

Tax  on  receipts. — Every  railroad,  pipe -line,  conduit,  steamboat, 
canal  slack  water  transportation,  street  car,  telephone,  telegraph,  ex- 
press, electric  light,  and  car  company  is  required  to  pay  a  tax  of  8  mills 
on  the  dollar  of  gross  receipts  from  business  in  the  state.  The  tax  is  to 
be  paid  semiannually  upon  the  last  days  of  January  and  July.  There  is 
a  penalty  of  10  per  cent  for  neglect  to  make  return  and  pay  the  tax. 

Private  bankers  or  brokers  pay  1  per  cent  on  gross  earnings.  Sav- 
ings institutions  and  corporations  not  subject  to  tax  on  their  capital 
stock  or  gross  premiums  are  subject  to  a  tax  of  3  per  cent  on  their  net 
earnings  or  income. 

Domestic  insurance  companies  pay  a  tax  of  8  mills  upon  the  gross 
premiums  and  assessments  received  from  business  transacted  within 
the  state,  except  companies  doing  business  on  the  mutual  plan  with- 
out capital  stock  or  reserve.  The  companies  are  to  make  semiannual 
reports  and  pay  the  taxes  on  the  last  days  of  January  and  July. 

Foreign  insurance  companies  pay  an  annual  tax  of  2  per  cent  on 
gross  premiums  received  from  business  in  the  state. 

Tax  on  corporate  loans. — The  treasurer  of  every  corporation  is  to 
deduct  from  interest  payable  on  any  scrip,  bond,  or  other  indebtedness 
of  the  corporation  due  to  residents  of  Pennsylvania  a  state  tax  of  4  mills 
on  the  dollar  of  such  debts. 

This  tax  is  laid  on  the  bonds  of  all  corporations,  public  or  private, 
excepting  banks,  savings  institutions,  and  foreign  insurance  companies, 
and  including  counties  and  cities. 

The  tax  is  not  on  the  corporation  or  its  property,  but  on  the  indi- 
vidual citizen  of  the  state  who  holds  the  bonds.  The  corporation  is 
chargeable  only  as  collector.  The  tax  was  formerly  laid  on  all  bond- 
holders, foreign  and  domestic,  but  was  held  unconstitutional  as  to  for- 
eign bondholders  in  the  case  of  State  Tax  on  Foreign-Held  Bonds. 

V.  Business  taxes  and  licenses. 

The  following  business  taxes  and  licenses  are  annual 
unless  otherwise  specified. 

Dealers  and  vendors — Retail  dealers  and  vendors,  $2  and  also  1  mill 
additional  of  the  whole  volume,  gross,  of  business  transacted  annually; 
wholesale  dealers  and  vendors,  $3  and  J  mill  additional  on  gross  busi- 
ness; dealers  and  vendors  at  exchanges  and  boards  of  trade,  25  cents 
on  each  $1,000  gross  sales.  Restaurants  and  eating  houses — first  class 
annual  sales  over  $20,000,  $200;  second  class,  annual  sales  $15,000  to 
$20,000,  $125;  third  class,  annual  sales  $10,000  to  $15,000,  $75;  fourth 
class,  annual  sales  $5,000  to  $10,000,  $30;  fifth  class,  annual  sales 
$3,000  to  $5,000,  $20;  sixth  class,  annual  sales  $2,000  to  $5,000,  $12; 
seventh  class,  annual  sales  $1,000  to  $2,000,  $10;  eighth  class,  annual 
sales  $500  to  $1,000,  $5;  feme  sole  boarding  house  keepers,  under 
$2,000  exempt.  Brokers'  and  auctioneers'  annual  license  fees — all 
stock,  exchange,  bill,  real  estate,  and  merchandise  brokers  and  auc- 
tioneers are  required  to  take  out  an  annual  license  before  they  engage 
in  business.  For  such  license  they  pay,  if  a  resident  of  Philadelphia 
county,  $100;  Allegheny  county,  $50;  any  other  county,  $25.  Brokers 
and  auctioneers — in  addition  to  the  license  fees  called  for  by  the  pre- 
ceding section,  license  taxes  are  collected  annually,  as  follows:  Mer- 
chandise and  real  estate  brokers  and  auctioneers  are  required  to  pay 


for  the  use  of  the  state  upon  their  annual  receipts  from  commissions, 
discounts,  etc.,  a  license  tax  of  3  per  cent.  Stock  brokers,  bill  brokers, 
exchange  brokers,  and  private  bankers  pay  upon  gross  receipts  from 
commissions  a  license  tax  of  1  per  cent.  Theaters  and  museums — 
cities,  first  class,  $500;  cities,  second  class,  $400;  cities,  third  class,  $75; 
boroughs  and  townships.  $30;  circuses  and  menageries  (no  exemption 
from  city  or  borough  license),  $1,000.  Wholesale  liquor  dealers — 
cities,  first  and  second  classes,  $1,000;  cities,  third  class,  $500;  bor- 
oughs, $200;  townships,  $100.  Rectifiers,  compounders,  storekeepers, 
and  agents — cities,  first  and  second  classes,  $1,000;  cities,  third  class, 
$500;  boroughs,  $200 ;  townships,  $100.  Licenses  are  collected  by  the 
county  treasurer  and  paid  over  to  the  state,  as  follows:  Retail  liquor 
dealers  (for  state  in  addition  to  local  licenses) — cities,  first  and  second 
classes,  $100;  other  cities,  $50;  boroughs,  $50;  townships,  $25.  Distill- 
ers— production  less  than  50  barrels,  $100;  50  to  100  barrels,  $200: 
100  to  200  barrels,  $250;  200  to  300  barrels,  $300;  300  to  400  barrels, 
$400;  400  to  500  barrels,  $500;  500  to  3,000  barrels,  $1,000;  3,000  to 
5,000  barrels,  $1,250;  5,000  to  10,000  barrels,  $1,500;  10,000  to  20,000 
barrels,  $1,750;  20,000  barrels,  $2,000;  all  new  distilleries  and  brew- 
eries, first  year,  $1,000.  Bottlers — cities,  first  and  second  classes, 
$500;  cities,  third  class,  $350;  boroughs,  $250;  townships,  $125.  Brew- 
ers— brewers,  $1,000;  they  are  to  sell  only  to  licensed  dealers;  and  the 
following  wholesale  licenses:  Production,  less  than  1,000  barrels,  $250; 
1,000  to  2,000  barrels,  $300:  2,000  to  3,000  barrels,  $400;  3,000  to 
5,000  barrels,  $500;  5,000  to  10.000  barrels,  $750;  10,000  to  20,000 
barrels,  $1,000;  20,000  to  30,000  barrels,  $1,250;  30,000  to  40,000  bar- 
rels, $1,500;  40,000  to  50,000  barrels,  $1,750;  50,000  to  60,000  barrels, 
$2,000;  60,000  to  70,000  barrels,  $2,250;  70,000  tox  80,000  barrels, 
$2,500;  80,000  to  90,000  barrels,  $2,750;  90,000  to  100,000  barrels, 
$3,000;  100,000  to  150,000  barrels,  $4,000;  150,000  to  200,000  barrels, 
$4,500;  200,000  to  300,000  barrels,  $5,000;  over  300,000  barrels,  $6,000. 
Manufacturers,  dealers,  and  users  of  oleomargarine  and  renovated  but- 
ter— manufacturers,  $1,000;  wholesale  dealers,  $500:  retail  dealers, 
$100;  restaurant  keepers  and  hotel  proprietors,  $50;  boarding  house 
keepers,  $10.  Hawkers  and  peddlers — retail  peddlers,  on  foot,  $8; 
with  one  horse  and  wagon,  $16;  with  two  horses  and  wagon,  $25; 
wholesale  peddlers,  with  one  horse  and  wagon,  $40:  with  two  horses 
and  wagon,  $50.  Retail  licenses  authorize  to  do  business  within  the 
county  where  issued;  wholesale  licenses  authorize  to  do  business  in 
any  part  of  the  state.  Billiard  rooms,  saloons,  bowling  alleys,  and 
tenpin  alleys,  $30  for  first  billiard  table,  bowling  and  tenpin  alley, 
and  $10  for  each  additional  table  or  alley.  Manufacture  and  sale  of 
commercial  fertilizers — 100  tons  or  less,  $15  for  each  brand;  100  to 
500  tons,  $20  for  each  brand;  500  tons  or  more,  $30  for  each  brand. 

B.    FEES. 

By  secretary  of  the  commonwealth. — Filing  papers  creating  corpora- 
tion, $25;  filing  increase  or  decrease,  capital  stock,  $25;  filing  articles  of 
association,  railroads,  $50;  filing  agreements  of  merger  and  consolida- 
tion, $50;  amendments  to  charter,  $10;  instrument  incorporating 
bank,  per  $1,000  capital,  10  cents;  instrument  incorporating  compa- 
nies, $25;  prothonotary  writ  of  error  or  appeal  entered  by  the  supreme 
court,  to  be  paid  by  the  losing  party,  $3.50;  original  writs  in  common 
pleas,  50  cents;  transcript  of  judgment  of  justice  of  peace,  25  cents. 

By  register  of  wills. — Probate  of  wills  or  letters  of  administration,  50 
cents. 

By  recorder  of  deeds. — Recording  deeds  and  mortgages,  50  cents; 
commissions  of  inferior  officers  of  cities  and  counties,  clerks  of  court, 
health  officers,  notaries,  recorders,  etc.,  $10. 

County  Revenues. 

A.    TAXES. 

I.    The  general  property  tax. 
1.  Base — 
a.   The    property    included    and    exempt. — Property 
subject  to  and  exempt  from  taxation  for  county  pur- 
poses is  as  follows: 


TAXATION  AND  REVENUE  SYSTEMS— PENNSYLVANIA. 


779 


(1)  Real  estate,  including  all  houses,  lands,  lots  of  ground  of  all 
descriptions,  furnaces,  forges,  bloomeries,  distilleries,  sugarhouses, 
malthouses,  breweries,  tanyards,  and  ferries. 

(2)  The  following  personal  property,  viz:  All  horses,  mares,  geldings, 
and  cattle  above  the  age  of  four  years.  Mortgages,  judgments,  and 
articles  of  agreement  given  by  corporations  for  the  sale  of  real  estate. 

(3)  In  addition  to~public  property,  churches,  cemeteries,  hospitals, 
colleges,  and  institutions  of  learning,  benevolence,  or  charity,  public 
libraries,  and  endowments  thereof,  are  exempt.  Mortgages,  judgments, 
and  moneys  owing  upon  articles  of  agreement  for  the  sale  of  real  estate, 
except  those  of  corporations,  are  exempt  from  all  taxation  except  for 
state  purposes. 

i.  Assessment. — The  county  assessment  is  made 
triennially  (1897,  1900)  by  the  assessors  of  the  respec- 
tive townships,  wards,  and  districts.  The  assessment 
is  to  be  made  between  the  second  Monday  of  Septem- 
ber and  the  31st  day  of  December,  and  refers  to  the 
second  Monday  in  September.  Property  is  to  be  as- 
sessed at  its  actual  value,  being  the  price  for  which  it 
would  sell.  The  list  is  made  by  the  assessors,  and  no 
statement  of  valuation  is  required  of  the  taxpayer. 
Timber  lands  are  assessed  separately  from  cleared 
lands.  No  reduction  from  real  estate  is  made  for  any 
ground  rent,  dower,  or  mortgage. 

Failure  to  make  return  renders  the  taxpayer  liable 
to  an  increase  of  50  per  cent.  False  return  is  punish- 
able by  a  fine  of  $500,  or  imprisonment  not  exceeding 
seven  years. 

All  offices  and  posts  of  profit,  professions,  trades,  and  occupations, 
and  all  single  freemen  above  the  age  of  21  years  who  do  not  follow  any 
occupation  or  calling,  are  to  be  assessed  by  the  assessors  of  the  several 
counties  along  with  real  estate  and  personal  property. 

All  unseated  lands — that  is,  lands  lacking  either  residence  or  cultiva- 
tion— are  to  be  assessed  in  the  same  manner  as  other  property.  Hold- 
ers of  such  lands  are  to  make  returns  to  the  commissioners  of  the  county 
under  penalty  of  quadruple  the  tax. 

Seated  lands  are  to  be  assessed  where  the  mansion  house  is  situated. . 

c.  Equalization. — The  board  of  revision  equalizes 
the  valuation  of  property  in  the  county,  and  they  may 
raise  the  whole  of  the  valuation. 

An  appeal  lies  to  the  commissioners  of  the  county  by 
the  taxpayer  from  the  sum  for  which  he  stands  rated 
and  the  rate  per  cent  of  such  amount.  Freeholders 
may  appeal  from  the  commissioners  to  the  court  of 
common  pleas  for  the  district  where  the  property  is 
situated.  The  county  commissioners  supervise  the  tri- 
ennial assessment  and  may  raise  or  reduce  valuations 
only  in  such  year. 
2.  Rate — 

The  county  commissioners  apportion  taxes  among 
the  wards,  townships,  and  districts  according  to  the 
valuation  of  taxable  property  and  other  subjects  of 
taxation.  The  tax  is  not  to  exceed  1  cent  on  every 
dollar  of  valuation. 

The  rate  for  any  office  or  post  of  profit,  profession, 
trade,  or  occupation,  or  on  any  single  freeman  who 
follows  no  occupation,  is  to  be  lowered  in  due  propor- 
tion as  the  tax  on  property  is  lower  than  1  cent  on  the 
dollar. 


3.  Collection — 
State,  county,  borough,  and  township  taxes  are  col- 
lected by  the  local  tax  collectors  of  the  boroughs  and 
townships,  who  are  compensated  by  commissions. 
On  receipt  of  the  tax  duplicate  the  collector  gives 
notice,  and  all  persons  who  make  payment  within 
sixty  days  are  entitled  to  a  reduction  of  5  per  cent. 
Warrants  for  collection  are  in  effect  two  years.  Col- 
lectors have  power  to  levy  by  distress  and  sale  of  chat- 
tels, and  if  necessary  to  confine  the  delinquent  in  jail. 
Lands  may  be  sold  for  county  and  township  taxes  two 
years  due.  Taxes  on  unseated  lands  are  to  be  paid 
within  a  year.  All  taxes,  county,  township,  poor, 
school,  or  municipal  (except  in  cities  of  the  first  and 
second  classes)  are  a  lien  on  real  estate  from  the  date 
of  levy  for  three  years,  and,  if  recorded,  for  five  years. 

Refund  of  state  tax  on  personalty. — Three-fourths  of  the  state  tax  .on 
personalty  is  refunded  to  the  counties  where  collected. 

II  and  III.  Poll  tax  and  inheritance  tax. 

There  are  no  county  poll  or  inheritance  taxes. 

IV.  Corporation  taxes. 

Bonus  received  by  the  state  from  foreign  railway  cor- 
porations is  to  be  paid  to  the  counties  in  which  the 
lines  are  located  in  proportion  to  the  assessed  valuation 
of  real  estate  in  the  counties.  (By  virtue  of  the  pay- 
ment of  the  bonus  the  railroad  is  relieved  from  local 
taxation  on  its  property.) 

V.  Business  taxes  and  licenses. 

An  annual  dog  tax  to  be  fixed  by  the  county  commissioners,  not  to 
exceed  the  following  rates  per  annum:  Male  dog,  $2;  female  dog,  $4; 
spayed  female  dog,  $2.     Detectives,  annual  license,  $25. 

Counties  receive  $100  from  each  of  municipal  licenses  on  retail  liquor 
dealers,  and  one-fifth  of  each  township  or  borough  license. 

Municipal  Revenues. 

A.    TAXES. 

I.    The  general  property  tax. 
1.  Base — 

a.  The  property  included  and  exempt. — In  the  vari- 
ous municipal  divisions  the  property  included  and 
exempt  is,  in  the  main,  the  same  as  for  county  taxa- 
tion. 

The  cities  of  Philadelphia  and  Pittsburg  have  special  systems  for 
local  taxation  on  the  property  subject  to  county  and  municipal  taxes. 
In  addition,  by  city  ordinances,  the  offices,  depots,  car  houses,  and 
other  real  property,  except  the  superstructure  of  the  roads  and  water 
stations,  of  railroad  corporations  situated  in  these  cities  is  subject  to 
taxation  for  municipal  purposes.  Pittsburg,  also,  is  authorized  to 
tax  the  property  subject  to  taxation  for  state  purposes. 

b.  Assessment. — In  townships  and  boroughs  the  as- 
sessment is  the  same  as  that  for  county  purposes.  In 
cities  of  the  first  class  (those  with  a  population  of 
600,000  or  over)  the  assessment  is  made  annually  by 
the  assessors  of  the  districts  into  which  counties  of 
1,250,000  population  are  divided.     In  cities  of  the  sec- 


780 


WEALTH,  DEBT,  AND  TAXATION. 


ond  class  (those  with  a  population  of  from  100,000  to 
600,000)  the  assessment  is  made  by  the  city  board  of 
assessors,  who  take  as  a  basis  the  last  preceding  assess- 
ment, and  revise,  equalize,  and  alter  it.  Real  estate 
is  to  be  classified  as  built  up,  rural,  agricultural,  and 
untillable  land.  The  assessment  is  made  triennially. 
In  cities  of  the  third  class  (those  with  a  population 
less  than  100,000)  the  city  board  of  assessors  make 
the  assessment  during  the  year  of  the  triennial  assess- 
ment for  county  purposes. 

c.  Equalization. — In  townships  and  boroughs,  the 
assessment  is  equalized  by  the  county  commissioners; 
in  cities  of  the  first  class  by  the  board  of  revision;  in 
cities  of  the  second  class  by  the  board  of  assessors ;  and 
in  cities  of  the  third  class  by  the  board  of  revision. 
From  any  of  these  an  appeal  lies  to  the  county  court 
of  common  pleas. 

2.  Rate— 

Supervisors  of  townships  may  levy  an  annual  tax 
not  exceeding  1  cent  on  the  dollar  for  township  pur- 
poses. Road  supervisors  may  levy  a  like  tax  of  not 
more  than  10  mills  on  the  dollar  for  the  construction 
and  maintenance  of  roads  and  highways,  and  over- 
seers of  the  poor  may  also  levy  a  tax  of  1  cent  on  the 
dollar. 

Every  borough  has  the  power  to  levy  and  collect  a 
tax  of  not  exceeding  1  cent  on  the  dollar. 

In  cities  the  councils  fix  the  rate  of  municipal  taxa- 
tion, but  in  cities  of  the  third  class  the  rate  for  gen- 
eral purposes  is  limited  to  10  mills  on  the  dollar. 

In  cities  of  the  second  class  the  rate  on  agricultural, 
farm  or  untillable  land  is  to  be  one-half  the  highest 
rate  of  tax  for  the  current  year;  upon  rural  and  sub- 
urban it  is  to  be  two-thirds,  while  upon  built-up  prop- 
erty the  tax  is  to  be  at  the  highest  rate  levied. 

3.  Collection — 

In  townships  and  boroughs  the  collection  is  the  same 
as  for  county  taxes,  except  that  a  taxable  is  allowed 
to  pay  not  less  than  one-fourth  or  more  than  one-half 
of  the  road  tax  by  labor  on  the  highways. 

City  collectors  are  vested  with  the  same  powers  as 
the  collectors  of  state  and  county  taxes. 

There  are  certain  special  provisions  as  to  liens  and 
methods  of  collection. 

II.  Poll  tax. 

In  cities  of  the  second  and  third  classes  a  tax  of  $1 


upon  each  resident  may  be  levied  in  lieu  of  the  former 
taxes  on  trades,  professions,  and  occupations. 

In  townships  upon  every  taxable  the  supervisors  may 
levy  $1,  one-half  at  least  to  be  paid  in  money  and  the 
balance  in  work. 

III.  Inheritance  tax. 

There  is  no  municipal  inheritance  tax. 

IV.  Corporation  taxes. 

One-half  of  the  net  amount  received  from  the  2  per 
cent  tax  upon  premiums  of  foreign  fire  insurance  com- 
panies is  to  be  paid  to  the  several  cities  and  boroughs. 

V.  Business  taxes  and  licenses. 

Cities  of  the  first  and  second  classes  are  authorized 
to  issue  licenses  for  pawnbrokers,  omnibuses,  and 
other  vehicles,  including  street  cars;  for  the  sale  of 
petroleum  and  gunpowder,  for  lodging  houses,  vendors, 
and  sundry  other  minor  occupations. 

Cities  of  the  third  class  are  authorized  to  levy  and 
collect  for  general  revenue  purposes  a  license  tax  not 
exceeding  $100  annually  on  various  occupations  and 
lines  of  business  and  amusements. 

Every  city  is  authorized  to  tax  dogs. 

Transient  retail  merchants  selling  at  bankrupt  sales,  etc.,  are  required 
to  take  out  a  license.  The  amount  is  to  be  fixed  by  the  authorities  of 
the  city,  borough,  or  township,  between  $25  and  $200  per  month,  to  be 
paid  to  the  local  school  fund. 

Retail  liquor  dealers'  licenses  for  one  year  are  as  follows:  Cities,  first 
and  second  classes  ($100  of  this  goes  to  county),  $1,000;  cities,  third 
class,  $500;  other  cities,  $300;  boroughs,  $150;  townships  (roads  and 
schools,  one-fifth  goes  to  county),  $75. 

Pittsburg  may  tax  sales  of  merchandise  at  the  rate  of  5  mills  on  the 
dollar  and  an  annual  business  tax  of  one-third  of  1  mill  on  the  dollar  on 
the  average  quarterly  business  of  commission  merchants,  brokers,  banks 
insurance  agencies,  express  companies,  and  telegraph  companies. 

School  Revenues. 

State  appropriations  are  distributed  to  districts,  one- 
third  on  the  basis  of  the  number  of  teachers  paid,  one- 
third  according  to  the  number  of  children  of  school  age, 
and  one-third  according  to  the  number  of  taxpayers. 

The  school  directors  of  any  district  are  to  fix  the 
amount  of  tax  necessary  for  the  district  not  exceeding 
the  amount  of  state  and  county  taxes,  on  all  objects, 
persons,  and  property  taxable  for  state  or  county  pur- 
poses. The  tax  on  trades,  professions,  and  occupa- 
tions, or  on  single  freemen  is  not  to  be  less  than  $1.  A 
poll  tax  may  be  levied  in  lieu  of  the  occupation  tax  for 
school  purposes. 


RHODE  ISLAND. 


Taxation  in  Rhode  Island  is  almost  entirely  a  matter 
of  local  administration  in  the  towns.  State  taxes  are 
apportioned  among  the  towns  on  the  basis  of  a  fixed 
valuation  revised  from  time  to  time,  but  at  long  inter- 
vals, by  the  general  assembly.     Save  for  certain  gen- 

1  This  compilation  is  derived  mainly  from  the  General  Laws  of  the 
State  of  Rhode  Island,  in  effect  February  1,  1896,  published  by  author- 
ity of  the  general  assembly:  Providence,  R.  I.,  1896. 


eral  legislation  designed  to  bring  about  uniformity 
between  individuals,  the  state  can  not  be  said  to  exer- 
cise any  supervision  over  the  manner  in  which  its  reve- 
nues are  raised. 

The  main  dependence  is  upon  the  general  property 
tax,  but  there  are  some  special  corporation  taxes  on  tele- 
graph, telephone,  express,  and  street  railroad  com- 
panies, savings  banks,  and  insurance  companies,  and 


TAXATION  AND  REVENUE  SYSTEMS— RHODE  ISLAND. 


781 


gas  and  electric  light  companies  shared  between  the 
state  and  the  municipalities. 

The  counties  are  merely  judicial  districts  and  have 
no  independent  treasuries  or  revenues. 

There  are  a  few  license  taxes  reserved  for  the  state, 
and  some  in  which  both  the  state  and  the  towns  partic- 
ipate ;  but  in  the  main  licenses  are  locally  administered. 
The  state  receives  one-fourth  of  the  liquor  licenses. 

There  is  a  local  poll  tax  of  $1  in  lieu  of  other  taxes 
upon  persons  whose  other  taxes  do  not  amount  to  $1. 
There  is  no  inheritance  tax. 

CONSTITUTIONAL    PROVISIONS. 

ARTICLE    IV. 

Sec.  15.  The  general  assembly  shall  from  time  to  time  provide  for 
making  new  valuations  of  property  for  the  assessment  of  taxes  in  such 
manner  as  they  deem  best. 

AMENDMENT    VII. 

Sec.  2.  The  assessors  of  each  town  and  city  shall  annually  assess  upon 
every  person,  who,  if  registered,  would  be  qualified  to  vote,  a  tax  of  one 
dollar  or  such  sum  as  with  his  other  taxes  shall  amount  to  one  dollar, 
which  tax  shall  be  paid  into  the  treasury  of  the  town  or  city  to  be  applied 
to  the  support  of  public  schools  therein. 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  Town  assessors,  not  less  than  three  nor  more  than  seven,  elected 
annually  at  the  town  election. 

(2)  Collectors  of  taxes,  elected  annually  at  the  town  election.  They 
are  paid  a  commission  of  5  per  cent  for  collecting  unless  they  agree  with 
the  towns  for  less. 

(3)  General  treasurer  of  the  state,  elected  every  year. 

State  Revenues. 

a.   TAXES. 

I.   The  general  property  tax. 
1.  Base — 
a.   The  property  included  and  exempt. — All  real  prop- 
erty in  the  state  and  all  personal  property  belonging 
to  the  inhabitants  thereof  is  liable  to  taxation  unless 
otherwise  specially  provided. 

(1)  "Real  estate,"  for  the  purposes  of  taxation  and  assessment, in- 
cludes all  land,  buildings  on  leased  land,  the  leases  whereof  are  in  writ- 
ing and  recorded;  gearing  or  fixtures  when  owned  by  the  owner  of  the 
realty  to  which  they  are  attached.  The  mortgagor  is  deemed  the  owner 
of  mortgaged  real  estate  so  long  as  he  is  in  possession. 

(2)  "Personal  property,"  for  the  purposes  of  taxation,  includes  all 
goods,  chattels,  and  debts  due  from  solvent  persons,  money  and  effects, 
wherever  they  may  be;  all  vessels  at  home  or  abroad;  all  public  stocks 
and  securities  not  specially  exempt;  all  shares  in  any  bank,  turnpike, 
bridge,  or  other  corporation  within  or  without  this  state,  except  such  as 
are  exempt  from  taxation  by  the  laws  of  this  state. 

No  shareholder  is  liable  to  taxation  for  shares  held  in  any  corporation 
within  the  state  which  in  its  corporate  capacity  is  taxed  within  the  state 
for  an  amount  equal  to  the  value  of  its  property;  nor  for  shares  in  any 
corporation  without  the  state  which  is  so  liable  to  taxation,  or  the 
shares  of  which  are  taxed  in  the  state  of  charter. 

(3)  Exemptions  are:  All  public  property,  except  the  estates  of  alms- 
houses belonging  to  the  towns,  which  are  subject  to  taxation  for  school 


purposes,  and  town  and  city  property,  which  may  be  included  in  state 
valuations;  churches;  property  held  for  educational  or  charitable  insti- 
tutions; the  estates  and  persons  of  the  president  and  professors  of 
Brown  University  and  their  families  up  to  $10,000  per  officer;  property 
exempted  by  charter  or  legislative  contract;  cemeteries;  public  libraries; 
property  held  for  the  use  of  homes  or  hospitals  for  the  helpless  or  for 
public  education ;  estates  of  persons  who  in  the  judgment  of  the  assessors 
are  unable  to  pay;  land  worth  not  more  than  $25  per  acre  planted  in 
certain  kinds  of  trees  for  fifteen  years  from  the  time  the  trees  reach  4  feet 
in  height;  manufacturing  property  by  vote  of  towns  for  ten  years. 

Actual  indebtedness  is  deducted  from  the  personal  property  liable  to 
taxation. 

h.  Assessment. — The  assessment  or  valuation  of 
property  in  the  towns  for  the  apportionment  of  state 
taxes  is  made  by  the  general  assembly  at  long  and 
irregular  intervals.  But  each  town's  share  so  fixed  is 
raised  by  a  levy  upon  the  assessed  valuations  made 
each  year  by  the  town  assessors,  and  is  the  same  as  that 
upon  which  all  property  taxes  are  levied.  There  does 
not  appear  to  be  any  uniform  date  to  which  the  assess- 
ment or  valuation  refers,  each  town  being  at  liberty  to 
determine  for  itself  when  the  assessment  shall  be  made. 
The  figures  relating  to  the  valuations  are  not  therefore 
synchronous  and  can  not  be  made  so. 

All  property  liable  to  taxation  is  to  be  assessed  at  its 
full  and  fair  cash  value  by  the  assessors.  Every  per- 
son and  corporation  is  required  to  bring  in  a  sworn  list 
of  his  property,  specifying  the  value,  which  value  is  not, 
however,  binding  on  the  assessor.  Whoever  neglects 
to  bring  in  a  sworn  list  has  no  remedy  if  overtaxed. 

Power  machinery,  live  stock,  and  farming  tools  are 
taxed  always  where  located,  and  other  personal  prop- 
erty is  taxed  at  the  owner's  domicile,  if  resident  in 
the  state;  if  not,  in  the  town  where  it  is  located. 
Residents  are  not  to  be  assessed  on  property  taxed 
in  another  state. 

Shares  in  national  banks  held  by  nonresidents  are  taxed  in  the  town  in 
which  the  bank  is  located.     Such  taxes  are  a  lien  on  the  shares. 

Stockholders  in  domestic  corporations  are  taxed  only  for  the  difference 
between  the  cash  market  value  of  each  share  and  the  proportionate 
amount  per  share  at  which  its  real  estate  and  machinery  were  last 


Vessels  engaged  in  foreign  commerce  may  be  assessed  on  their  net 
profits.     A  tax  of  1  per  cent  is  then  levied  in  lieu  of  other  taxation. 

The  statutes  prescribe  a  fixed  valuation  for  the  several  towns,  which  is 
to  be  the  basis  of  the  state  tax  at  the  rate  fixed. 

c.  Equalization. — There  is  no  provision  for  equali- 
zation strictly  so  called,  but  any  person  aggrieved  by 
assessment  may  petition  the  supreme  court  for  relief. 
This  petition ,  however,  does  not  stay  proceedings 
for  collecting  the  taxes. 
2.  Rate- 
There  is  a  fixed  rate  of  IS  cents  on  each  SI 00  of  the 
ratable  property  of  the  several  towns,  which  is  to  be 
assessed  annually,  collected,  and  paid  by  them  to  the 
general  treasurer. 

Whenever  the  general  assembly  orders  a  further 
state  tax  to  be  levied  on  inhabitants  or  ratable  estates, 
the  secretary  of  state  is  forthwith  to  send  a  certified 
copy  of  the  act  to  the  town  clerk  of  each  town,  who 


782 


WEALTH,  DEBT,  AND  TAXATION 


are  to  notify  the  assessors  to  assess  their  town's  pro- 
portion in  the  same  manner  as  for  town  taxes . 
3.   Collection — 

In  general,  all  taxes,  state  and  local,  upon  property 
are  collected  by  the  town  collectors.  The  taxes  at 
the  rate  fixed  for  the  state  are  to  be  paid  by  the  several 
towns,  one-half  before  June  15  and  one-half  before 
December  15.  The  general  treasurer  issues  his  war- 
rant for  collection  of  state  taxes  to  the  town  collectors. 
The  towns  and  their  officers  are  liable  to  the  state  for 
the  tax.  Execution  may  be  levied  on  the  property  of 
the  towns  or  inhabitants  thereof. 

Taxes  assessed  for  either  personal  or  real  estate  are  a 
lien  on  the  real  estate  in  the  town.  The  collector 
may  distrain  personal  property. 

II  and  III.  Poll  tax  and  inheritance  tax. 

There  are  no  state  poll  or  inheritance  taxes. 

IV.  Corporation  taxes. 

Most  corporations  are  taxed  under  the  general  prop- 
erty tax  as  individuals.  There  is  no  special  provision 
for  the  taxation  of  railroads  in  particular  or  corpora- 
tions in  general,  except  that  they  are  not  assessed  on 
intangible  personalty,  which  is  deemed  to  be  repre- 
sented by  the  corporate  stock  which  is  taxable  to 
individuals. 

Telegraph  and  telephone  companies  are  taxed  1  per  cent  on  their 
gross  receipts  derived  from  business  transacted  within  the  state.  This 
is  in  lieu  of  all  other  taxes  upon  its  lines  and  personal  estate  used  in  the 
business. 

Express  companies  are  required  to  pay  a  similar  tax.  These  taxes  are 
to  be  paid  on  or  before  August  1 ,  and  may  be  collected  by  execution 
against  property. 

Savings  banks  on  or  before  August  1,  pay  to  the  state  40  cents  on 
.each  $100  of  deposits,  and  on  each  $100  of  reserved  profits. 

Trust  companies  incorporated  in  Rhode  Island  pay  a  similar  tax  on 
deposits  of  "  participating  "  accounts. 

Insurance  companies  of  the  state  are  to  pay  2  per  cent  of  the  gross  pre- 
miums and  assessments  on  property  insured  in  the  state  or  on  property 
in  other  states  where  such  premiums  are  not  taxed. 

Foreign  insurance  companies'  agents,  and  those  of  foreign  surety 
companies  are  required  to  pay  a  tax  of  2  per  cent  on  the  amount  of  pre- 
miums and  assessments  received  in  the  state. 

Foreign  building  and  loan  associations  pay  one-fourth  of  1  per  cent  on 
capital  actually  paid  in  from  residents,  with  certain  deductions  for  loans, 
etc. 

Street  railway  companies  pay  1  per  cent  on  the  gross  earnings  and  if 
the  dividends  exceed  8  per  cent,  the  amount  of  such  excess. 

V.  Business  taxes  and  licenses. 

The  state  receives  one-fourth  of  the  liquor  licenses 
collected  by  the  towns  and  cities;  one-half  of  the  pro- 
ceeds of  town  and  city  licenses  on  shows,  exhibitions, 
bowling  alleys,  billiard  and  shooting  galleries;  and 
seven-eighths  of  the  duties  on  auction  sales,  which  are 
one-tenth  of  1  per  cent  of  the  property  sold. 

Itinerant  vendors,  state  license,  per  annum,  $25;  hawkers  and  ped- 
dlers, by  general  treasurer — jewelry,  whole  state,  per  annum,  $200; 
Providence  county,  per  annum,  $100;  other  counties,  per  annum,  $50; 
other  merchandise — whole  state,  per  annum,  $60;  whole  state,  quarterly, 
$15;  Providence  county,  per  annum,  $30;  quarterly,  $10;  patented 
articles,  per  annum,  $50. 


B.    FEES. 

The  secretary  of  state. — Incorporation  fees,  certificates,  general ,  $1 ; 
incorporation  fees,  special  tax,  $100;  corporations  other  than  for  busi- 
ness, $5;  also  one-tenth  of  1  per  cent  on  capital  stock  above  $100,000; 
increase  capital  stock,  one-tenth  of  1  per  cent;  civil  commission,  $2; 
examination  of  foreign  building  and  loan  associations  by  insurance 
commissioner,  $50;  practice  of  medicine,  examination,  $10;  certificate, 
$2;  pharmacists,  examination,  $10;  dentists,  examination,  $25;  cer- 
tificate, $2;  peddlers'  license,  $1;  analysis  of  commercial  fertilizers 
(compulsory) ,  $6 ;  foreign  insurance  and  surety  companies — filing  copy 
of  charter,  $30;  filing  annual  statement,  $20;  agent's  certificate,  annual, 
$2.  Analysis  fee  to  be  paid  for  all  manufacturers,  agents,  and  sellers  of 
any  brand  of  commercial  fertilizer  used  in  the  state,  a  fee  of  $6  for 
each  ingredient  said  to  be  contained  in  any  brand  of  such  fertilizer. 

County  Revenues. 

The  counties  are  merely  judicial  districts  and  have  no 
independent  treasury  or  revenues. 

Municipal  Revenues. 

A.    TAXES. 

I.  The  general  property  tax. 

1.  Base — 

■  The  property  included  and  the  assessment  and  equal- 
ization thereof  are  in  general  the  same  as  have  already 
been  described  under  state  taxes. 

2.  Rate— 

Those  electors  of  any  town  who  pay  a  tax  on  at  least 
$134  worth  of  property  may,  by  vote,  levy  a  tax  for  the 
purposes  authorized  by  law  on  the  ratable  property  of 
the  town,  either  of  a  certain  sum  or  at  a  certain  per- 
centage on  the  valuation,  and  may  order  the  time  when 
the  tax  is  to  be  assessed  and  when  paid.  The  rate  may 
not  exceed  1  per  cent  except  for  debt  charges  or  to 
repair  damages  caused  by  the  elements. 

3.  Collection — 

Collection  is  made  by  the  town  collectors  upon  war- 
rant of  the  town  treasurer. 

II.  Poll  tax. 

Every  person  qualified  to  vote  is  to  be  assessed,  at 
the  annual  assessment  of  town  or  city  taxes,  a  tax  of  $1 , 
or  so  much  thereof  as  with  his  other  taxes  shall  amount 
to  $1.  In  case  of  nonpayment  the  delinquent  may  be 
committed  to  jail,  there  to  remain  until  he  pays  the  tax 
and  all  legal  costs. 

III.  Inheritance  tax. 

There  is  no  inheritance  tax. 

IV.  Corporation  taxes. 

For  general  provisions  relating  to  taxation  of  cor- 
porations in  Rhode  Island,  see  State  revenue.  Public 
service  corporations  given  a  franchise  by  a  munici- 
pality are  required  by  state  law,  in  return  for  the  priv- 
ilege bestowed  by  such  franchise,  to  pay  such  portion 
of  their  gross  earnings  not  to  exceed  3  per  cent  as  may 
be  agreed  upon  by  the  terms  of  the  franchise  grant. 


TAXATION  AND  REVENUE  SYSTEMS— SOUTH  CAROLINA. 


783 


V.  Business  taxes  and  licenses. 

Dogs,  male,  $1.15;  female,  $5.15;  funds  to  be  used,  first,  to  pay 
damages,  and  the  balance  to  be  applied  to  school  fund.  Town  coun- 
cils may  license,  at  discretion,  public  shows,  bowling  alleys  and  billiard 
tables,  exhibitions,  and  intelligence  offices.  One-half  of  the  proceeds  goes 
to  the  state.  Three-fourths  of  the  amount  of  money  received  from  liquor 
licenses  goes  to  the  town  or  city  and  one-fourth  to  the  state.  The  rates 
are:  To  manufacture  or  to  sell  liquor  at  wholesale  and  retail,  $500  to 
$1,000;  to  sell  liquor  at  retail  only,  according  to  size  of  town,  $200  to 
$400 ;  for  druggists  to  sell  liquors  for  medicinal  purposes  only,  $5.  Pawn- 
brokers, $50;  private  detective,  $10;  auctions,  one-tenth  of  1  per  cent 
duty  on  all  property  sold," seven-eighths  of  the  proceeds  of  which  goes 
to  the  state.     Itinerant  vendor,  local  fee,  $5. 

School  Revenues. 

The  constitution  provides  that  the  money  which  is 
appropriated  for  the  establishment  of  a  permanent 
school  fund  shall  be  invested  as  a  perpetual  fund  for 
that  purpose.  The  laws  provide  that  the  duties 
imposed  on  auctioneers,  which  are  paid  to  the  state, 


shall  be  added  to  the  school  fund.  The  income  of  the 
fund  is  to  be  annually  appropriated  for  the  support  of 
public  schools  in  the  towns. 

The  sum  of  $120,000  is  appropriated  annually  by  the 
state  for  the  support  of  the  schools  in  the  several  towns, 
and  apportioned  according  to  the  number  of  schools 
and  children ;  but  towns,  as  a  condition,  must  raise  by 
tax  an  equal  sum.  The  state  also  makes  additional 
small  appropriations  for  graded  and  high  schools, 
evening  schools,  school  apparatus,  and  school  super- 
vision, and  maintains  the  normal  school  and  the  Rhode 
Island  Institute  for  the  Deaf. 

Towns  may  divide  themselves  by  vote  into  school  dis- 
tricts. Every  such  district  may  raise  money  by  tax 
on  the  ratable  property  of  the  district,  the  amount  to 
be  approved  by  the  school  committee  of  the  town. 
District  taxes  are  levied  on  the  town  assessment  and 
collected  the  same  as  town  taxes. 


SOUTH  CAROLINA. 


South  Carolina  draws  its  state,  county,  and  munici- 
pal revenues  mainly  from  the  general  property  tax. 
There  are  no  inheritance  or  special  corporation  taxes, 
except  license  fees  on  insurance  companies  and  certain 
other  financial  corporations,  and  a  tax  on  gross  pre- 
miums. The  state  leaves  business  taxes  and  licenses, 
except  an  inspection  tax  on  fertilizers,  to  the  coun- 
ties and  municipalities.  There  is  a  graduated  income 
tax.  Poll  taxes  and  the  net  income  of  the  state  liquor 
dispensary  are  applied  to  free  public  schools.  State 
royalties  are  charged  for  mining  phosphates  in  the 
navigable  waters  and  marshes  of  the  state. 

CONSTITUTIONAL    PROVISIONS. 

ARTICLE    X. 

Sec.  1.  The  general  assembly  shall  provide  by  law  for  a  uniform  and 
equal  rate  of  assessment  and  taxation,  and  shall  prescribe  regulations  to 
secure  a  just  valuation  for  taxation  of  all  property,  real,  personal,  and 
possessory,  except  mines  and  mining  claims,  the  product  of  which  alone 
shall  be  taxed;  and  also  excepting  such  property  as  may  be  exempted  by 
law  for  municipal,  educational,  literary,  scientific,  religious,  or  charitable 
purposes:  Provided,  however,  That  the  general  assembly  may  impose  a 
capitation  tax  upon  such  domestic  animals  as  from  their  nature  and  hab- 
its are  destructive  of  other  property:  And  provided  further,  That  the  gen- 
eral assembly  may  provide  for  a  graduated  tax  on  incomes  and  for  a 
graduated  license  on  occupations  and  business. 

Sec.  2.  The  general  assembly  shall  provide  for  an  annual  tax  sufficient 
to  defray  the  estimated  expenses  of  the  state  for  each  year,  and  when- 
ever it  shall  happen  that  the  ordinary  expenses  of  the  state  for  any  year 
shall  exceed  the  income  of  the  state  for  such  year  the  general  assembly 
shall  provide  for  levying  a  tax  for  the  ensuing  year  sufficient,  with  other 
sources  of  income,  to  pay  the  deficiency  of  the  preceding  year,  together 
with  the  estimated  expenses  of  the  ensuing  year. 

Sec.  3.  No  tax  shall  be  levied  except  in  pursuance  of  a  law  which  shall 
distinctly  state  the  object  of  the  same;  to  which  object  the  tax  shall  be 
applied. 

•This  compilation  is  derived  mainly  from  the  following  sources: 
Code  of  Laws  of  South  Carolina,  1902,  Vol.  I.    The  Civil  Code:  The 

State  Companv,  Columbia,  S.  C,  1902. 

Acts  of  the  General  Assembly,  1902:  The  State  Company,  Columbia, 

S.C.,  1902. 


Sec.  4.  There  shall  be  exempted  from  taxation  all  county,  township, 
and  municipal  property  used  exclusively  for  public  purposes  and  not  for 
revenue,  and  the  property  of  all  schools,  colleges,  and  institutions  of  learn- 
ing; all  charitable  institutions  in  the  nature  of  asylums  for  the  infirm, 
deaf  and  dumb,  blind,  idiotic,  and  indigent  persons,  except  where  the 
profits  of  such  institutions  are  applied  to  private  uses ;  all  public  libraries, 
churches,  parsonages,  and  burying  grounds;  but  property  of  associations 
and  societies,  although  connected  with  charitable  objects,  shall  not  be 
exempted  from  state,  county,  or  municipal  taxation:  Provided,  That  as 
to  real  estate  this  exemption  shall  not  extend  beyond  the  buildings  and 
premises  actually  occupied  by  such  schools,  colleges,  institutions  of 
learning,  asylums,  libraries,  churches,  parsonages,  and  burial  grounds, 
although  connected  with  charitable  objects. 

Sec.  5.  The  corporate  authorities  of  counties,  townships,  school  dis- 
tricts, cities,  towns,  and  villages  may  be  vested  with  power  to  assess  and 
collect  taxes  for  corporate  purposes;  such  taxes  to  be  uniform  in  respect 
to  persons  and  property  within  the  jurisdiction  of  the  body  imposing  the 
same.  All  shares  of  shareholders  in  any  bank  or  banking  association 
located  in  this  state,  whether  now  or  hereafter  incorporated,  or  organ- 
ized under  the  laws  of  this  state  or  of  the  United  States,  shall  be  listed 
at  their  true  value  in  money  and  taxed  for  municipal  purposes  in  the 
city,  ward,  town,  or  incorporated  village  where  such  bank  is  located, 
and  not  elsewhere:  Provided,  That  the  words  "true  value  in  money"  as 
used  in  this  section  shall  be  so  construed  as  to  mean  and  include  all  sur- 
plus or  extra  moneys,  capital,  and  every  species  of  personal  property  of 
value  owned  or  in  possession  of  any  such  bank:  Provided,  That  a  like 
rule  of  taxation  shall  apply  to  the  stockholders  of  all  corporations  other 
than  banking  institutions.  And  the  general  assembly  shall  require  that 
all  the  property,  except  that  herein  permitted  to  be  exempted  within 
the  limits  of  municipal  corporations,  shall  be  taxed  for  corporate,  pur- 
poses and  for  the  payment  of  debts  contracted  under  authority  of 
law.     *     *     * 

Sec.  6.  *  *  *  The  general  assembly  shall  not  have  power  to  au- 
thorize any  county  or  township  to  levy  a  tax  or  issue  bonds  for  any  pur- 
pose except  for  educational  purposes,  to  build  and  repair  public  roads, 
buildings,  and  bridges,  to  maintain  and  support  prisoners,  pay  jurors, 
county  officers,  and  for  litigation, quarantine,  and  court  expenses,  and  for 
ordinary  county  purposes,  to  support  paupers,  and  pay  past  indebtedness. 

Sec.  12.  The  fiscal  year  shall  commence  on  the  first  day  of  January 
in  each  year. 

Sec.  13.  The  general  assembly  shall  provide  for  the  assessment  of 
all  property  for  taxation ;  and  state,  county,  township,  school,  municipal, 
and  all  other  taxes  shall  be  levied  on  the  same  assessment,  which  shall 
be  that  made  for  state  taxes;  and  the  taxes  for  the  subdivisions  of  the 
state  shall  be  levied  and  collected  by  the  respective  fiscal  authorities 
thereof. 


784 


WEALTH,  DEBT,  AND  TAXATION. 


ARTICLE    XI. 

Sec.  6.  (The  existing  county  boards  of  commissioners  of  the  several 
counties,  or  such  officers  as  may  be  vested  with  similar  duties,  shall  levy 
an  annual  tax  of  three  mills  on  the  dollar  upon  all  taxable  property  in 
their  respective  counties,  which  tax  shall  be  collected  at  the  same  time 
and  by  the  same  officer  as  the  other  taxes  for  the  same  year,  and  shall 
be  apportioned  among  the  school  districts  of  the  county  according  to 
the  number  of  pupils  enrolled.  *  *  *  There  shall  be  assessed  on  all 
taxable  polls  in  the  state  between  the  ages  of  twenty-one  and  sixty  years 
(excepting  Confederate  soldiers  above  the  age  of  fifty  years),  an  annual 
tax  of  one  dollar  on  each  poll,  the  proceeds  of  which  tax  shall  be  ex- 
pended for  school  purposes  in  the  several  school  districts  in  which  it  is 
collected.  Whenever  during  the  three  next  ensuing  fiscal  years  the  tax 
levied  by  the  said  county  boards  of  commissioners  or  similar  officers  and 
the  poll  tax  shall  not  yield  an  amount  equal  to  three  dollars  per  capita 
of  the  number  of  children  enrolled  in  the  public  schools  of  each  county 
for  the  scholastic  year  ending  the  thirty-first  day  of  October,  in  the  year 
eighteen  hundred  and  ninety-five,  as  it  appears  in  the  report  of  the  state 
superintendent  of  education  for  said  scholastic  year,  the  comptroller- 
general  shall,  for  the  aforesaid  three  next  ensuing  fiscal  years,  on  the  first 
day  of  each  of  said  years,  levy  such  an  annual  tax  on  the  taxable  prop- 
erty of  the  state  as  he  may  determine  to  be  necessary  to  make  up  such 
deficiency,  to  be  collected  as  other  state  taxes,  and  apportion  the  same 
among  the  counties  of  the  state  in  proportion  to  the  respective  deficien- 
cies therein,  and  apportioned  among  the  school  districts;  and  from  and 
after  the  thirty-first  day  of  December,  in  the  year  eighteen  hundred  and 
ninety-eight,  the  general  assembly  shall  cause  to  be  levied  annually  on 
all  the  taxable  property  of  the  state  such  a  tax,  in  addition  to  the  tax 
levied  by  the  said  county  boards  of  commissioners  or  similar  officers,  and 
poll  tax  above  provided,  as  may  be  necessary  to  keep  the  schools  open 
throughout  the  state  for  such  time  as  the  general  assembly  prescribes; 
and  such  tax  is  to  be  apportioned  among  the  counties.  Any  school  dis- 
trict may,  by  authority  of  the  general  assembly,  levy  an  additional  tax 
for  the  support  of  its  schools.) 

Sec.  12.  (All  the  net  income  to  be  derived  by  the  state  from  the  sale 
or  license  for  sale  of  spirituous,  malt,  vinous,  and  intoxicating  liquors 
and  beverages,  not  including  what  is  allowed  to  go  to  the  counties  and 
municipal  corporations  of  the  state,  shall  be  applied  annually  in  aid  of 
the  supplementary  taxes  for  public  school  purposes:  Provided,  That  the 
supplementary  taxes  are  only  to  be  levied  when  the  net  income  aforesaid 
is  not  sufficient  to  meet  and  equalize  deficiencies  in  the  school  funds.) 

ARTICLE   VIII. 

Sec  6.  The  corporate  authorities  of  cities  and  towns  in  this  state 
shall  be  vested  with  power  to  assess  and  collect  taxes  for  corporate  pur- 
poses, said  taxes  to  be  uniform  in  respect  to  persons  and  property  within 
the  jurisdiction  of  the  body  composing  the  same;  and  all  property,  ex- 
cept such  as  is  exempt  by  law,  within  the  limits  of  cities  and  towns 
shall  be  taxed  for  the  payment  of  debts  contracted  under  authority  of 
law.  License  or  privilege  taxes  imposed  shall  be  graduated  so  as  to 
secure  a  just  imposition  of  such  tax  upon  the  classes  subject  thereto. 

Sec.  8.  Cities  and  towns  may  exempt  from  taxation,  by  general  or 
special  ordinance,  except  for  school  purposes,  manufactories  estab- 
lished within  their  limits  for  five  successive  years  from  the  time  of  the 
establishment  of  such  manufactories:  Provided,  That  such  ordinance 
shall  first  be  ratified  by  a  majorit3'  of  such  qualified  electors  as  shall 
vote  at  an  election  held  for  that  purpose. 

article  II. 

Sec.  4(e).  (Payment  of  all  taxes,  including  poll  tax,  is  prerequisite 
to  voting.) 

ARTICLE    III. 

Sec  29.  All  taxes  upon  property,  real  and  personal,  shall  be  laid  upon 
the  actual  value  of  the  property  taxed,  as  the  same  shall  be  ascertained 
by  an  assessment  made  for  the  purpose  of  laying  such  tax. 


ARTICLE    I. 

Sec.  6.  All  property  subject  to  taxation  shall  be  taxed  in  proportion 
to  its  value. 

ARTICLE    IX. 

Sec.  3.  All  railroad,  express,  canal,  and  other  corporations  engaged 
in  transportation  for  hire,  and  all  telegraph  and  other  corporations  en- 
gaged in  the  business  of  transmitting  intelligence  for  hire  are  common 
carriers  in  their  respective  lines  of  business,  and  are  subject  to  liability 
and  taxation  as  such. 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  Township  boards  of  assessors,  appointed  by  the  governor  for  a 
term  of  two  years.  There  are  special  provisions  in  many  counties  for 
appointment  and  compensation. 

(2)  Boards  of  assessors  in  cities  and  towns,  three  electors,  appointed 
by  the  governor  for  a  term  of  two  years.  There  are  special  boards  in 
Charleston  and  Columbia. 

(3)  A  county  auditor,  appointed  by  the  governor  for  a  term  of  two 
years. 

(4)  A  county  treasurer,  appointed  by  the  governor  for  a  term  of  two 
years,  who  acts  as  collector. 

(5)  A  county  board  of  equalization,  composed  of  the  chairmen  of  the 
'    boards  of  assessors  of  the  county. 

(6)  A  comptroller-general,  elected  for  a  term  of  two  years. 

(7)  A  state  board  of  assessors,  composed  of  the  treasurer,  secretary 
\    of  state,  comptroller,  and  attorney-general,  and  chairman  of  the  board 

of  railroad  commissioners. 

(8)  A  state  board  of  equalization,  composed  of  members  elected  by 
the  county  boards  of  commissioners. 

(9)  A  special  board  of  equalization  in  the  city  of  Charleston,  com- 
posed of  the  county  auditor  and  six  citizens,  to  be  elected  by  the  city 
council  of  Charleston. 

State  Revenues. 

a.  taxes. 

I.  The  general  property  tax. 
1.  Base — 
a.  The  property  included  and  exempt. — All  real  and 
personal  property  in  the  state  and  the  personal  prop- 
erty of  residents  of  the  state  which  may  be  kept  or 
used  temporarily  out  of  the  state,  with  the  intention 
of  bringing  the  same  into  the  state,  or  which  has  been 
sent  out  of  the  state  for  sale  and  not  yet  sold;  all 
moneys,  credits,  investments  in  bonds,  stocks,  joint- 
stock  companies,  or  otherwise  of  parties  resident  in 
the  state  are  subject  to  taxation. 

(1)  "Real  property''  includes  not  only  land,  city,  town,  and  village 
lots,  but  also  all  structures  and  other  things  thereon  contained  or  at- 
tached thereto  which  pass  to  the  vendee  by  the  conveyance  of  the  land 
or  lot. 

(2)  "  Personal  property,"  for  purposes  of  taxation,  includes  all  things 
other  than  real  estate  which  have  any  pecuniary  value,  and  moneys, 
credits,  investments  in  bonds,  stocks,  joint-stock  companies,  or  other- 
wise. "Credits"  are  held  to  be  the  remainder  due  to  a  party  after 
deducting  all  debts  and  demands  against  him.  But  no  deductions  are 
to  be  made  for  insurance  premium  notes  to  mutual  insurance  com- 
panies, subscriptions  to  capital  stock  of  any  joint-stock  company,  taxes 
assessed  on  charitable  subscriptions,  or  for  contingent  liabilities.  All 
property  used  in  the  operation  of  railroads  is  classed  as  personal  prop- 
erty. 


TAXATION  AND  REVENUE  SYSTEMS— SOUTH  CAROLINA. 


785 


(3)  Exemptions,  in  addition  to  public  property,  are:  Churches,  their 
books  and  furniture  and  parsonage;  colleges,  academies,  and  institu- 
tions of  learning  and  their  endowment;  cemeteries;  fire  departments; 
all  bonds  and  stocks  of  the  state  and  municipal  bonds  when  exempted 
by  statute;  all  rents  accruing  from  real  estate  which  shall  not  become 
due  within  two  months  after  the  first  day  of  January  in  the  year  in 
which  taxes  are  to  be  assessed  thereon ;  all  of  any  annuity  not  payable 
on  or  before  August  1  of  the  year  for  which  taxes  are  to  be  assessed 
thereon;  all  pensions  from  the  United  States  or  from  a  state;  all  shares 
of  the  capital  stock  of  any  company  which  is  required  to  list  its  capital 
and  property  for  taxation  in  this  state;  all  the  wearing  apparel  of  the 
person  required  to  make  return  and  his  family  articles  for  the  present 
subsistence  of  the  family  up  to  $100;  fair  grounds  of  agricultural  and 
mechanical  societies. 

b.  Assessment. — There  is -but  one  assessment  for- 
state,  county,  and  municipal  purposes.  Real  estate 
is  listed  every  fourth  year  (1898-1902),  but  changes 
on  account  of  sales,  transfers,  or  improvements  are 
entered  annually.  Personal  property  is  assessed  an- 
nually as  of  January  1,  except  that  agricultural  prod- 
ucts in  the  hand  of  the  producer  on  August  1  preced- 
ing are  included.  All  property  is  to  be  valued  at  its 
true  money  value,  which,  for  real  estate,  is  the  price 
obtained  at  court  sales  for  partition,  and  for  personalty, 
is  the  usual  price  at  administrators'  sales.  The  county 
auditor  attends  at  a  convenient  place  in  each  town- 
ship for  the  purpose  of  assessing  property.  The  assess- 
ment is  based  upon  a  sworn  list  of  the  items  and  their 
value  furnished  the  auditor  by  the  taxpayer,  and 
failure  to  furnish  such  list  or  a  false  list  is  punished 
by  an  increase  of  50  per  cent  in  the  assessed  value. 
The  auditor  has  no  authority  to  change  the  values 
given  by  the  owner  but  may  recommend  changes  to 
the  board  of  township  assessors,  or  to  municipal  boards, 
who  fix  the  values. 

Shares  of  stock  in  state  and  national  banks  are  assessed  where  the 
bank  is  located  at  their  "  true  value  in  money,"  which  is  construed  to 
mean  all  surplus,  capital,  and  every  kind  of  personal  property  owned  by 
the  bank.  The  real  estate  is  taxed  to  the  bank,  and  deducted  from  the 
value  of  the  shares.  Unincorporated  banks  and  bankers  are  assessed 
on  the  average  monthly  assets  for  the  year. 

Manufacturers  are  assessed  on  the  average  value  of  the  capital  em- 
ployed in  their  business  for  the  preceding  year,  pawnbrokers  on  the 
average  value  of  property  pawned  to  them  during  the  year.  Mines  and 
mining  claims  actually  mined  are  assessed  not  on  the  land,  but  on  the 
gross  proceeds  at  the  cash  market  value  of  the  material  mined.  All 
personal  property  used  in  connection  with  the  mine  is  assessed  like  other 
property. 

Property  used  in  the  operation  of  any  railroad,  turnpike,  plank  road, 
bridge,  telegraph,  or  canal  slack  water  navigation  company,  if  the  com- 
pany be  organized  in  the  state,  is  treated  as  personal  property. 

Railroad  property  used  in  operation  is  assessed  by  the  state  board  of 
MMMm.  The  road  is  required  to  make  statements  to  the  comptroller- 
general  and  also  to  the  county  auditors.  Penalty  for  failure  to  make  the 
statements  is  50  per  cent  additional  to  actual  value.  The  value  of  the 
right  of  way  and  track  is  to  be  apportioned  pro  rata  to  each  mile  of  main 
track,  and  to  this  value  is  to  be  added  the  value  of  the  real  estate,  fix- 
tures, and  stationary  property  situated  in  the  town,  city,  or  village ;  the 
total  value  of  the  rolling  stock,  money,  and  credit  is  to  be  apportioned 
pro  rata  to  each  mile  of  main  track  in  each  town,  city,  and  village.  The 
apportionment  is  made  primarily  by  the  railroad  company  through  its 
returns,  but  the  state  board  adjusts  this  apportionment. 

932—07 50 


Sleeping  car  companies,  palace,  drawing  room,  dining,  and  chair  car 
companies,  and  telegraph,  telephone,  and  express  companies  are  assessed 
by  the  state  board  of  assessors  on  the  basis  of  verified  statements  to  the 
comptroller-general,  taking  the  aggregate  value  of  all  the  shares  of  cap- 
ital stock  at  their  market  value  and  the  aggregate  of  any  mortgages, 
which  is  deemed  the  true  cash  value  of  the  property  of  the  corporation. 
The  assessed  value  of  the  real  estate  and  structures  not  specifically  used 
in  the  general  business,  as  found  by  the  local  assessors,  is  to  be  deducted 
from  the  gross  value  of  the  property  as  ascertained  by  the  state  board — 
only  that  proportion  of  the  value  is  taken  which  represents  property 
within  the  state.  The  assessment  of  the  state  board  of  assessors  is  ap- 
portioned to  the  counties  and  by  the  county  auditors  to  the  townships. 

Domestic  insurance  companies  are  assessed  on  personal  property  and 
assets  where  the  principal  officer  is  located,  but  agents  of  foreign  com- 
panies are  assessed  on  the  gross  receipts  of  the  agency,  together  with  the 
value  of  the  personal  estates  situated  at  the  agency,  and  are  charged 
with  taxes  on  the  amount  so  returned. 

Corporations  are  in  general  assessed  as  individuals.  Where  the  prop- 
erty of  domestic  corporations  is  taxed  in  the  state,  the  shares  of  such  cor- 
porations are  not  assessed. 

c.  Equalization. — The  duty  of  the  township  and 
special  boards  of  assessors  in  increasing  and  lowering 
the  valuation  of  any  property,  real  or  personal,  as  fixed 
by  the  county  auditor  or  returned  by  any  person,  per- 
tains to  the  assessment  rather  than  to  equalization. 

The  county  board  of  equalization  equalizes  the 
valuations  of  real  and  personal  property  fixed  by  the 
board  of  township  assessors  and  the  special  boards  of 
assessors.  It  may  raise  or  reduce  items  in  the  list,  but 
is  not  to  reduce  the  aggregate  value  as  returned  to  the 
county  auditor.  There  is  an  appeal  from  this  board 
to  the  comptroller-general. 

The  state  board  of  equalization  meets  every  fourth 
year  for  the  equalization  of  the  assessment  of  real  prop- 
erty among  the  several  counties,  towns,  cities,  and 
villages.  It  equalizes  both  the  real  and  personal  prop- 
erty returns  of  textile  industries,  canals  providing 
power  for  rent  or  hire,  and  cottonseed-oil  and  ferti- 
lizer companies  annually,  in  order  to  obtain  uniform- 
ity of  taxation  upon  the  property  of  such  industries. 

2.  Rate— 

For  the  fiscal  year  beginning  January  1,  1902,  a  tax  of  5  mills  was 
levied  by  the  general  assembly  upon  every  dollar  of  the  value  of  all 
taxable  property  of  the  state  to  meet  the  current  expenses  of  govern- 
ment and  other  indebtedness. 

3.  Collection — 

Taxes  are  collected  by  the  county  treasurer,  who 
is  paid  for  his  services  by  commissions  out  of  the 
taxes  collected.  The  time  of  payment  in  1902  was 
from  the  15th  day  of  October  to  the  31st  day  of 
December.  A  penalty  of  10  per  cent  is  to  be  added  to 
taxes  not  paid  before  the  day  fixed  in  the  act  levying 
taxes  for  that  year  (in  1902,  December  31).  Delin- 
quent taxes  are  collected  by  distress  or  warrant  to  be 
executed  after  January  15.  All  personal  property  is 
liable  to  distress  and  sale,  and  real  property  on  which 
taxes  are  delinquent  may  be  seized  and  sold.  All 
taxes  are  a  lien  upon  the  property  taxed  which  at- 


786 


WEALTH,  DEBT,  AND  TAXATION. 


taches  at  the  beginning  of  the  fiscal  year  and  expires 
in  ten  years. 

II.  Poll  tax. 

All  males  between  21  and  50  years  of  age  are  subject 
to  an  annual  poll  tax  of  $1,  the  proceeds  of  which  are 
applied  to  educational  purposes.  Those  are  exempt 
who  are  incapable  of  earning  their  own  living. 

Nonpayment  of  the  poll  tax  is  made  a  misdemeanor 
punishable  by  a  fine  of  not  more  than  $10  or  by 
imprisonment  at  hard  labor  upon  the  public  works  of 
the  county  for  not  more  than  twenty  days.  Poll  taxes 
are  used  to  meet  the  expenses  of  school  districts  in 
which  collected  and  appear  in  reports  of  county  reve- 
nue receipts. 

III.  Inheritance  tax. 

There  is  no  inheritance  tax  in  this  state. 

IV.  Corporation  taxes. 

Corporations  are  not  required  to  return  their  capital 
for  taxation,  nor  are  the  shareholders  taxed  on  their 
shares,  but  the  real  and  personal  property  of  corpo- 
rations is  taxed  like  that  of  individuals. 

Foreign  insurance  companies,  foreign  land  associations,  foreign 
building  and  loan  associations,  foreign  banking  associations,  and  all 
other  classes  of  like  business  not  incorporated  in  the  state,  except 
national  banks  and  benevolent  institutions  organized  under  the  grand 
lodge  system,  are  required  to  pay  an  annual  license  fee  of  $100  to  the 
comptroller-general  by  the  31st  of  March  in  each  year.  Every  for- 
eign insurance  company  is  required  to  pay,  in  addition  to  the  annual 
license  fee,  a  graduated  license  fee  -of  one-half  of  1  per  cent  on  the 
gross  premiums,  gross  income,  or  gross  receipts  as  collected  during  the 
three  months  preceding  the  payment  of  the  license  fee  (March  31). 

V.  Business  taxes  and  licenses. 

These  are,  except  in  the  case  of  a  tax  on  fertilizers, 
left  to  the  counties  and  municipalities. 

All  persons  or  corporations  engaged  in  the  manufacture  or  sale  of 
fertilizers  or  commercial  manures  are  to  pay  the  state  treasurer  an  in- 
spection tax  of  25  cents  per  ton. 

VI.  Income  tax. 

There  is  a  graduated  tax  on  incomes  above  $2,500, 
whether  derived  from  any  kind  of  property,  rents, 
interests,  dividends,  or  salaries,  or  from  any  profes- 
sion, trade,  employment,  or  vocation,  or  any  other 
source  whatever,  as  follows : 

Income  $2,500. to  $5,000,  1  per  cent;  $5,000  to  $7,500,  1J  per  cent; 
$7 ,.500  to  $10,000,  2  per  cent;  $10,000  to  $15,000,  2$  per  cent;  $15,000 
and  over,  3  per  cent. 

"  Income  "  is  taken  to  mean  gross  profits,  and  deduc- 
tion is  made  of  necessary  expenses  for  carrying  on  the 
business  or  occupation.  Incomes  are  to  be  listed  at 
the  time  of  the  making  of  returns  of  personal  property. 
Collection  is  the  same  as  for  other  state  taxes,  and  with 
like  penalty  for  neglect  to  make  return.  For  willful 
fraud  the  penalty  is  100  per  cent. 

B.    FEES. 

Secretary  of  state. — Charter  issued  or  renewed — one  mill  on  each  dol- 
lar of  capital  stock  up  to  $100,000;  one-half  mill  on  each  dollar  of  cap- 
ital stock  from  $100,000  to  $1,000,000;  one-fourth  mill  on  each  dollar  of 
capital  stock  over  $1 ,000,000.     Recording  application  for  amendment, 


$2.50;  increase  of  stock,  etc.,  $5;  declarations  of  foreign  corporations,  $5; 
filing  charter,  consolidation  of  railroad  companies,  same  fee  as  for  organi- 
zation, with  credit  for  charter  fees  paid. 

Comptroller-general. — Fraternal  beneficiary  associations,  permit,  $25; 
annual  report,  $25;  doctors,  examination,  $5;  pharmacists,  examina- 
tion, $5;  dentists,  license,  $15. 

V>.    INCOME    FROM    PUBLIC    PROPERTY. 

Persons  mining  phosphate  in  navigable  waters  and  marshes  of  the 
state  are  to  pay  royalties  as  fixed  by  the  phosphate  commissioners  not  to 
exceed  $2  per  ton  on  the  crude  rock  mined. 

E.    INCOME    FROM    PUBLIC    INDUSTRIES. 

The  liquor  business  is  conducted  by  a  state  dispensary.  Profits  from 
sales  are  used  for  the  benefit  of  the  common  schools  of  the  state. 

The  liquor  is  sold  to  the  county  dispensers  by  the  state  dispensary  at  a 
profit  not  to  exceed  10  per  cent  of  the  cost  to  the  state. 

The  profits  of  the  county  dispensaries  are  to  be  paid  one-half  to  the 
counties  and  one-half  to  the  municipal  corporation  in  which  they  may  be 
located. 

County  Revenues. 

a.   TAXES. 

I.  The  general  property  tax. 

1.  Bo,se — 

The  property  included  and  the  assessment  and 
equalization  thereof  are  the  same  for  county  as  for 
state  taxes. 

2.  Rate— 

The  rate  of  tax  in  the  several  counties  is  fixed  by  the 
general  assembly. 

The  county  commissioners  are  authorized  to  levy  a  tax  of  3  mills 
on  the  dollar  for  the  support  of  public  schools  of  their  respective 
counties. 

3.  Collection — 

Collection  is  the  same  as  for  state  taxes. 

II,  III,  and  IV.  Poll  tax,  inheritance  tax,  and  corpora- 

tion taxes. 
There   are   no  county  poll,  inheritance,  or   special 
corporation  taxes.     (See  State  revenues,  II.) 

V.  Business  taxes  and  licenses. 

Piays  and  shows  outside  the  corporate  limits  of  the  towns  and  vil- 
lages, per  day,  $3;  hawkers  and  peddlers,  fee  to  be  determined  by 
county  board  of  commissioners;  pawnbrokers,  ibid.;  gathering  oysters, 
clams,  and  catching  terrapin,  $10  per  annum  for  each  boat  of  1  ton,  and 
for  each  additional  ton,  $5;  each  person  exporting  clams,  $25;  terrapin, 
$200;  canning  oysters,  $400.  To  traffic  in  sea-island  cotton,  $50  per 
annum;  in  cottonseed  in  certain  counties,  $300;  in  others,  $500:  in 
others,  $25;  in  Charleston,  $50.  Sale  of  liquors  (see  E,  under  State 
revenues) — profits  from  county  dispensary  divided  between  county  and 
municipality. 

Municipal  Revenues. 

a.   TAXES. 

I.  The  general  property  tax. 
1.  Base — 
The  property  included  and  the  assessment  and 
equalization  thereof  are  the  same  for  municipal  and 
school  taxes  as  for  state.  The  assessment  is  to  be 
copied  from  the  county  auditor's  books.  Cities  and 
towns  may  by  popular  vote  exempt   for  five  years 


TAXATION  AND  REVENUE  SYSTEMS— SOUTH  DAKOTA. 


787 


from  all  taxes,   except  school   taxes,   manufacturing 
establishments  established  within  their  limits. 

2.  Rate— 

The  city  or  town  council  has  power  to  impose  an  annual  tax  not 
exceeding  1}  per  cent  in  cities  containing  over  5,000  inhabitants,  and 
not  over  1  per  cent  in  towns  containing  between  1,000  and  5,000 
inhabitants.     In  smaller  towns  the  limit  is  50  cents  on  $100. 

3.  Collection — 

Collection  is  made  the  same  as  for  state  and  county 
taxes,  but  may  be  made  in  installments. 
II.  Poll  tax. 

The  city  council  has  power  to  require  all  male  in- 
habitants of  a  city  between  18  and  50  years  of  age  to 
work  upon  the  roads,  streets,  and  ways  of  the  city  not 
exceeding  four  days  in  each  year.  The  city  council 
may  commute  this  tax  to  a  money  payment  not  to 
exceed  $3  per  annum. 

Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There  are  no  municipal  inheritance  or  corporation 
taxes. 

V.  Business  taxes  and  licenses. 

City  or  town  councils  may  require  licenses  of  per- 
sons or  corporations  engaged  in  any  calling,  business, 
occupation,  or  profession  within  the  limits  of  the  city 
or  town,  except  from  teachers  or  ministers  of  the  gos- 


pel. The  license  is  to  be  graduated  according  to  the 
gross  income  of  the  taxpayer  or  upon  the  amount  of 
capital  invested  in  the  business. 

Municipalities  receive  one-half  of  the  profits  from  county  liquor  dis- 
pensaries located  therein.     (See  e  under  State  revenues.) 

Plays  and  shows  in  towns  and  villages,  $3  per  day.  (The  city 
council  of  Charleston  may  impose  any  sum  up  to  $.500.) 

Traffic  in  long  or  sea-island  cotton  must  be  licensed  by  the  county 
treasurer.  The  fee  is  $.50,  and  is  held  for  the  repairing  of  roads  and 
bridges  in  the  township  where  collected. 

School  Revenues. 

The  counties  are  divided  into  school  districts,  which 
are  authorized  to  levy  and  collect  an  annual  tax  for 
school  purposes  upon  petition  of  at  least  one-third  of 
the  resident  electors  and  freeholders.  The  rate  of  tax 
is  not  to  exceed  4  mills  on  the  dollar  and  is  levied  upon 
the  state  and  county  assessment  roll. 

The  county  superintendent  of  education  apportions 
the  money  arising  from  the  3-mill  school  taxes  among 
the  school  districts  of  the  county.  State  poll  taxes 
are  expended  in  the  districts  where  collected. 

All  net  income  derived  by  the  state  from  the  sale  of 
liquors  under  the  dispensary  law  is  apportioned  among 
the  counties  of  the  state  for  the  benefit  of  the  common 
schools,  in  proportion  to  the  deficiencies  after  the  appli- 
cation of  the  3-mill  tax  and  the  poll  tax. 


SOUTH   DAKOTA. 


South  Dakota  depends  almost  entirely  upon  the 
general  property  tax  for  state,  county,  and  municipal 
revenues.  There  are  no  inheritance  taxes  and  practi- 
cally no  corporation  taxes,  but  some  fees  on  corpora- 
tions. The  poll  tax,  which  is  a  local  road  tax,  and 
most  of  the  business  taxes  and  licenses  are  left  to 
cities  and  counties. 

CONSTITUTIONAL    PROVISIONS. 

ARTICLE    XI. 

Sec.  1.  The  legislature  shall  provide  for  an  annual  tax,  sufficient  to 
defray  the  estimated  ordinary  expenses  of  the  state  for  eacli  year,  not 
to  exceed  in  any  one  year  two  mills  on  each  dollar  of  the  aasessed  valua- 
tion of  all  taxable  property  in  the  state,  to  be  ascertained  by  the  last 
assessment  made  for  state  and  county  purposes. 

And  whenever  it  shall  appear  that  such  ordinary  expenses  shall  ex- 
ceed the  income  of  the  state  for  such  year,  the  legislature  shall  provide 
for  levying  a  tax  for  the  ensuing  year,  sufficient,  with  other  sources  of 
income,  to  pay  the  deficiency  of  the  preceding  year,  together  with  the 
estimated  expenses  of  such  ensuing  year.  And  for  the  purpose  of  pay- 
ing the  public  debt  the  legislature  shall  provide  for  levying  a  tax  an- 
nually sufficient  to  pay  the  annual  interest  and  the  principal  of  such 
debt  within  ten  years  from  the  final  passage  of  the  law  creating  the  debt : 
Provided,  That  the  annual  tax  for  the  payment  of  the  interest  and  prin- 


■This  compilation  is  derived  mainly  from  the  following  sources: 
The  Revised  Codes,  1903,  State  of  South  Dakota,  compiled  by  Moody, 

Tripp,  and  Brown;  printed  pursuant  to  an  act  of  the  legislature  of  1903: 

State  Publishing  Company,  Pierre,  S.  Dak.,  1903. 

A  pamphlet  compilation  (apparently  official  but  without  author's  or 

publisher's  name  appearing)  of  the   Revenue  Laws  of  South  Dakota, 

J  902. 


cipal  of  the  public  debt  shall  not  exceed  in  any  one  year  two  mills  on 
each  dollar  of  the  assessed  valuation  of  all  taxable  property  in  the  state 
as  ascertained  by  the  last  assessment  made  for  state  and  county  pur- 
poses. 

Sec.  2.  All  taxes  to  be  raised  in  this  state  shall  be  uniform  on  all  real 
and  personal  property,  according  to  its  value  in  money,  to  be  ascertained 
by  such  rules  of  appraisement  and  assessment  as  may  be  prescribed  by 
the  legislature  by  general  law,  so  that  every  person  and  corporation 
shall  pay  a  tax  in  proportion  to  the  value  of  his,  her,  or  its  property. 
And  the  legislature  shall  provide  by  general  law  for  the  assessing  and 
levying  of  taxes  on  all  corporation  property,  as  near  as  may  be,  by  the 
same  methods  as  are  provided  for  assessing  and  levying  of  taxes  on  indi- 
vidual property. 

Sec.  3.  The  power  to  tax  corporations  and  corporate  property  shall 
not  be  surrendered  or  suspended  by  any  contract  or  grant  to  which  the 
state  shall  be  a  party. 

Sec.  4.  The  legislature  shall  provide  for  taxing  all  moneys,  credits,  in- 
vestments in  bonds,  stocks,  joint-stock  companies,  or  otherwise;  and 
also  for  taxing  the  notes  and  bills  discounted  or  purchased,  moneys 
loaned  and  all  other  property,  effects  or  dues  of  every  description,  of  all 
banks  and  of  all  bankers,  so  that  all  property  employed  in  banking  shall 
always  be  subject  to  a  taxation  equal  to  that  imposed  on  the  property 
of  individuals. 

Sec  5.  The  properly  of  the  United  States  and  of  the  state,  county, 
and  municipal  corporations,  both  real  and  personal,  shall  be  exempted 
from  taxation. 

Sec.  6.  The  legislature  shall,  by  general  law,  exempt  from  taxation 
property  used  exclusively  for  agricultural  and  horticultural  societies,  for 
school,  religious,  cemetery,  and  charitable  purposes,  and  personal  prop- 
erty to  any  amount  not  exceeding  in  value  two  hundred  dollars  for  each 
individual  liable  to  taxation. 

Sec.  7.  All  laws  exempting  property  from  taxation,  other  than  that 
enumerated  in  sections  5  and  0  of  this  article,  shall  be  void. 


788 


WEALTH,  DEBT,  AND  TAXATION. 


Sec.  8.  No  tax  shall  be  levied  except  in  pursuance  of  a  law  which 
shall  distinctly  state  the  object  of  the  same,  to  which  the  tax  only  shall 
be  applied. 

Sec.  9.  (All  taxes  levied  and  collected  for  state  purposes  shall  be  paid 
into  the  state  treasury.  No  indebtedness  shall  be  incurred  or  money 
expended  by  the  state  and  no  warrant  shall  be  drawn  upon  the  state 
treasurer  except  in  pursuance  of  an  appropriation.) 

Sec.  10.  The  legislature  may  vest  the  corporate  authority  of  cities, 
towns,  and  villages  with  power  to  make  local  improvements  by  special 
taxation  of  contiguous  property  or  otherwise.  For  all  corporate  pur- 
poses, all  municipal  corporations  may  be  vested  with  authority  to  assess 
and  collect  taxes;  but  such  tax  shall  be  uniform  in  respect  to  persons 
and  property  within  the  jurisdiction  of  the  body  levying  the  same. 

ARTICLE    VI. 

Sec.  17.  No  tax  or  dut\'  shall  be  imposed  without  the  consent  of  the 
people  or  their  representatives  in  the  legislature,  and  all  taxation  shall 
be  equal  and  uniform. 

article  xxvi. 

Sec.  18.  Schedule  and  ordinance.  (The  usual  provisions  against  dis- 
crimination against  nonresidents  in  taxation  of  lands,  taxation  of  lands 
of  the  United  States,  and  providing  for  taxation  of  Indians  whose  land 
is  not  exempted.) 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  County  assessor,  one  for  each  county  not  fully  organized  into 
civil  townships,  his  district  excluding  civil  townships,  elected  for  two 
years. 

(2)  Township  assessor,  one  for  each  civil  township,  the  chairman  of 
the  board  of  supervisors  is  ex  officio  assessor,  elected  for  two  years. 

(3)  City  assessor,  in  cities  of  the  first  and  second  class  appointed  by 
the  mayor  with  the  approval  of  the  city  council  for  one  year. 

(4)  Township  treasurer,  elected  at  annual  town  meeting. 

(5)  City  treasurer,  elected  for  two  years. 

(6)  County  treasurer,  elected  for  two  years. 

(7)  Town  board  of  equalization,  composed  of  the  board  of  supervisors 
of  each  township,  the  clerk  and  president  of  each  incorporated  town, 
and  the  assessor,  auditor,  and  mayor  of  each  city  (except  in  cities  the 
charters  of  which  provided  for  a  board  of  equalization). 

(8)  County  board  of  equalization,  composed  of  the  county  commis- 
sioners and  the  county  auditor. 

(9)  State  board  of  equalization,  composed  of  the  governor,  auditor, 
secretary  of, state,  treasurer,  and  commissioner  of  school  and  public 
lands. 

State  Revenues, 
a.  taxes. 

I.  The  general  -property  tax. 
1.  Base — 
a.  The  property  included  and  exempt. — All  real  and 
personal  property  in  the  state,  and  all  personal  prop- 
erty of  persons  residing  therein,  and  the  property  of 
corporations  and  of  all  banks  and  banking  companies, 
except  such  as  is  expressly  exempted,  is  subject  to 
taxation. 

(1)  "Real  property,"  for  the  purpose  of  taxation,  is  construed  to  in- 
clude the  land  itself  and  all  buildings,  structures,  and  improvements, 
trees,  fixtures,  and  all  rights  and  privileges,  and  all  mines,  minerals,  and 
quarries  thereto  belonging.  Trees  planted  under  the  timber  culture  act 
of  Congress  are  not  to  be  considered  as  "  improvement "  on  the  land,  nor 
are  artesian  wells  to  be  considered  in  the  assessment. 


(2)  "Personal  property"  is  construed  to  include  all  goods,  chattels 
moneys,  credits,  and  effects  wheresoever  they  may  be;  all  ships,  boats, 
and  vessels  belonging  to  inhabitants  of  the  state,  whether  at  home  or 
abroad,  and  all  capital  invested  therein;  all  moneys  at  interest,  within 
or  without  the  state,  due  to  the  person  to  be  taxed,  and  all  other  debts 
due  such  person;  all  public  stocks  and  securities;  the  capital  stock  of 
all  insurance  companies  organized  under  the  laws  of  this  state ;  all  stock 
in  corporations,  except  in  national  banks  out  of  the  state  owned  by  in- 
habitants of  the  state;  all  the  shares  of  stock  in  any  bank,  state  or  na- 
tional; all  personal  estate  of  moneyed  corporations,  whether  the 
owners  reside  in  or  without  the  state;  and  all  improvements  on  lands 
the  title  of  which  is  still  in  the  United  States  or  any  railroad  company 
or  corporation  whose  property  is  not  subject  to  the  same  modes  and 
rule  of  taxation  as  other  property;  also,  the  income  of  any  annuity, 
unless  the  capital  of  such  annuity  be  taxed  within  the  state.  Gas  and 
water  mains,  and  pipes  of  gas  and  water  companies;  and  the  track, 
road,  or  bridge  of  street  railroad,  turnpike,  and  bridge  companies  are 
held  to  be  personal  property. 

(3)  Exemptions,  in  addition  to  public  property,  are:  The  grounds, 
buildings,  and  other  property  of  agricultural  and  horticultural  societies, 
all  property,  real  and  personal,  of  any  educational  institution  of  the  state, 
and  all  property  used  exclusively  for  the  support  of  such  school  or  scien- 
tific institution;  all  property  belonging  to  any  charitable,  benevolent, 
or  religious  society,  or  used  exclusively  for  charitable,  benevolent,  or 
religious  purposes;  one  lot  in  a  cemetery,  for  family  use:  and  house- 
hold furniture  and  provisions  for  each  individual  not  exceeding  $25  in 
value. 

b.  Assessment. — In  general,  there  is  one  assessment 
roll  for  state,  county,  and  local  taxes.  Each  county  in 
the  state  not  fully  organized  into  civil  townships  con- 
stitutes an  assessor's  district,  excluding  organized  civil 
townships,  each  of  which  constitutes  a  district;  cities 
are  not  included  in  the  district  as  provided  for,  but  are 
separate  districts.  All  real  and  personal  property  is 
assessed  annually,  with  reference  to  the  1st  day  of 
May.  The  assessor  is  actually  to  view  the  property 
when  practicable  and  determine  the  true  and  full  value 
in  money,  putting  down  separately  the  land  and  im- 
provements. Every  person,  under  oath,  must  list  his 
personal  property,  but  the  assessor  determines  the 
value,  upon  view.  The  penalty  for  refusal  to  make  the 
required  statements  is  50  per  cent  on  the  value  re- 
turned by  the  assessor,  and  for  refusal  to  be  sworn  or 
to  answer  interrogatories  there  is  a  penalty  of  $10  to 
$500,  to  which  may  be  added  six  months'  imprison- 
ment. The  statute  expressly  directs  that  the  assessor 
is  not  to  adopt  a  lower  or  different  standard  of  value, 
because  the  same  is  to  serve  as  a  basis  of  taxation,  nor 
is  he  to  adopt  as  a  criterion  of  value  the  price  at  which 
the  property  would  sell  at  auction  or  forced  sale,  but  is 
to  value  all  property  at  such  a  price  as  the  same  is 
fairly  worth  in  money. 

All  property  subject  to  taxation,  situated  in  any  of 
the  unorganized  counties  of  the  state  which  have 
been  attached  to  an  organized  county  for  judicial  or 
other  purposes,  is  to  be  listed  for  taxation  by  the 
assessor  of  such  county.  But  taxes  in  unorganized 
counties  are  levied  only  for  state  and  judicial  pur- 
poses. 

The  capital  stock  and  franchises  of  corporations  are  listed  where  the 
principal  place  of  business  is  located. 


TAXATION  AND  REVENUE  SYSTEMS— SOUTH  DAKOTA. 


789 


Stockholders  of  every  bank,  state  and  national,  are  to  be  taxed  on 
their  shares  in  the  town  where  the  bank  is  located.  The  real  estate  is 
taxed  to  the  bank.  The  basis  for  valuation  of  the  shares  is  the  amount 
of  capital  and  surplus  fund  less  the  investments  in  real  estate. 

All  itinerant,  transient,  or  bankrupt  stock  merchants  or  salesmen  are 
ngaooood  on  their  stock  at  the  same  rate  as  other  merchants. 

Railroads  are  taxed  under  the  general  property  tax  and  are  assessed 
on  property,  used  in  the  operation  and  maintenance  of  the  road,  by  the 
state  board  of  equalization,  but  other  property  is  locally  assessed.  The 
assessment  is  made  with  reference  to  the  1st  day  of  May,  and  takes  into 
consideration  the  gross  and  net  earnings  per  mile  and  other  data  fur- 
nished by  statements  by  the  company.  There  is  a  penalty  of  25  per 
cent  of  the  assessable  value  for  failure  to  make  the  statement.  The 
assessment  is  apportioned  to  the  counties  by  the  state  board  of  equaliza- 
tion, and  further  to  the  cities,  incorporated  towns,  and  townships  of  the 
counties  by  the  board  of  county  commissioners. 

Telegraph,  telephone,  express,  and  sleeping  car  companies  are  also 
■Mewed  by  the  state  board  of  equalization  on  the  basis  of  statements,  in 
the  manner  that  railroads  are  assessed.  There  are  penalties  for  failure 
to  make  the  statements  and  for  false  statements  of  from  $500  to  $5,000. 

c.  Equalization. — The  town  board  of  review  equal- 
izes in  townships,  incorporated  towns,  and  cities  be- 
tween the  individuals  thereof  and  supplies  omissions  of 
property. 

The  county  board  of  equalization  compares  the 
assessment  of  the  several  cities,  towns,  or  districts  of 
the  county.  The  board  is  not  to  reduce  the  aggregate 
valuation  of  the  county  except  to  make  the  valuation 
in  the  different  townships  equal.  But  the  board  may 
raise  the  valuation  of  real  property  or  of  the  various 
classes  of  personal  property  of  the  county  or  of  any 
town  or  district  to  the  true  and  full  value  thereof. 
The  board  may  also,  upon  application,  equalize  be- 
tween individuals. 

The  state  board  of  equalization  compares  the  assess- 
ment of  the  several  counties  of  the  state  and  equalizes 
the  same  so  that  the  several  counties  are  assessed  at 
their  proportionate  value.  The  board  is  not  to  in- 
crease the  aggregate  assessed  valuation  of  the  state  as 
equalized  by  the  boards  of  county  commissioners 
by  more  than  $3,000,000.  It  is  to  add  or  deduct 
such  a  per  cent  from  the  valuation  of-  each  class  of 
property  as  will  fix  the  same  at  its  proper  proportionate 
value. 

2.  Rate— 

The  state  board  of  equalization  determines  such  rate 
of  state  tax  to  be  levied  for  the  current  year  as  is  nec- 
essary for  defraying  the  ordinary  estimated  expenses 
of  the  state  for  such  year,  for  paying  any  deficiency 
from  the  ordinary  expenses  of  the  preceding  year  and 
the  annual  interest,  and  for  providing  a  sinking  fund 
for  the  public  debt  of  the  state.  The  tax  for  ordinary 
state  purposes  is  not  to  exceed  2  mills  on  the  dollar  in 
any  one  year;  but  the  legislature  may  levy  a  defi- 
ciency tax. 

3.  Collection — 

In  general,  there  is  one  collection  for  state,  county, 
and  municipal  juirposes  made  by  the  county  treasurer. 
In  organized  townships  or  cities  the  treasurer  collects 
the  taxes,  if  the  counties  have  adopted  that  method 


by  vote.  In  districts  not  included  in  organized  town- 
ships or  in  cities  of  counties  which  have  so  voted,  the 
county  treasurer  is  collector  of  all  taxes  levied  for 
state,  county,  school,  poor,  bridge,  road,  or  other  pur- 
poses. No  demand  for  taxes  is  necessary  to  fix  liability 
therefor,  but  it  is  the  duty  of  every  person  to  attend  at 
the  office  of  the  treasurer  having  charge  of  collection 
and  to  pay  his  taxes.  Taxes  are  due  the  1st  day  of 
December;  after  the  10th  of  January,  demand  is  made 
and  2  per  cent  added  for  collection  fees;  and  if  delin- 
quent after  the  1st  day  of  March,  the  treasurer  is  to 
collect  the  taxes,  to  which  is  added  1  per  cent  on  the 
1st  of  each  month  as  a  penalty  by  distress  and  sale. 
If  he  is  justly  apprehensive  of  the  loss  of  any  personal 
tax,  he  may  enforce  its  collection  at  any  time  and  may 
add  4  per  cent  for  collection  fees.  Taxes  on  real  prop- 
erty are  a  perpetual  lien  from  December  1 ;  and  those 
on  personal  property  are  a  lien  thereon  after  the  same 
date. 

Taxes  may  be  paid  in  two  installments.  If  any  per- 
son pays  one-half  by  the  1st  day  of  March,  the  bal- 
ance will  not  become  delinquent  until  the  1st  day  of 
October  thereafter,  from  which  day  1  per  cent  a 
month  is  to  be  added  as  penalty. 

Taxes  on  railroads  are  collected  as  other  taxes,  but  taxes  on  tele- 
graph and  telephone,  express,  and  sleeping  car  companies  are  to  be 
paid  to  the  state  treasurer  and  by  him  apportioned  to  the  counties. 

II  and  III.  Poll  tax  and  inheritance  tax. 

There  are  no  state  poll  or  inheritance  taxes. 
TV.   Corporation  taxes. 

There  are  no  special  corporation  taxes  except  on 
insurance  companies,  all  corporations  being  taxed 
under  the  general  property  tax.  A  special  method  is 
provided,  however,  for  levying  and  collecting  taxes  on 
telegraph,  telephone,  express,  and  sleeping  car  com- 
panies. These  companies  pay  to  the  state  treasurer  a 
percentage  on  the  assessed  valuation  equal  to  the 
average  levy  in  the  state  for  all  purposes,  and  the 
taxes  so  received  are  apportioned  between  the  state 
and  other  civil  divisions. 

Domestic  insurance  companies  are  assessed  upon  their  capital  stock. 
Foreign  insurance  companies  pay  2J  per  cent  of  their  gross  premiums  in 
lieu  of  all  other  taxes.  Assessment  companies  pay  2  per  cent  on  gross 
assessment  premiums. 

V.  Business  taxes  and  licenses. 

Public  warehouse  for  grain,  $1 ;  hunter's  license — to  residents,  $1 ;  to 
nonresidents,  for  birds,  $10;  to  nonresidents,  for  animals,  $25. 

B.    FEES. 

Secretary  of  state. — Recording  articles  of  incorporation  of  domestic 
corporations  and  issuing  charter,  $10;  religious,  charitable,  benevolent, 
and  fraternal  associations,  $3;  filing  articles  of  foreign  corporations  and 
issuing  certificates  of  authority,  $10;  recording  appointment,  resident 
agent,  $2;  examination  of  annual  statement  of  building  and  loan  asso- 
ciation, $.5;  recording  papers,  per  folio,  20  cents;  transcripts,  per  folio, 
20  cents;  commissions,  passports,  etc.,  $2;  amendments,  articles  of 
incorporation,  $1;  examination  and  statement  of  surety  companies,  $5. 


790 


WEALTH,  DEBT,  AND  TAXATION. 


Commissioner  of  insurance. — Foreign  insurance  companies — filing 
copy  of  charter,  $25;  annual  statement,  $10;  certificate  of  authority, 
$2;  domestic  insurance  companies — filing  and  examination  of  first 
application,  $10;  filing  annual  statement,  $3;  certificate  of  authority  to 
agents,  50  cents. 

Other  fees  are — Dentists,  examination,  $10;  embalmers — license,  $5; 
renewal,  $3;  osteopaths,  $10;  physicians,  $10;  pharmacists — registra- 
tion, $5;  renewal,  $5;     dentists,  license,  $5. 

County  Revenues. 

a.   TAXES. 

I.  The  general  property  tax. 

1.  Base— 

The  property  included  and  the  assessment  and  equal- 
ization thereof  are  the  same  for  county  taxes  as  for 
state. 

2.  Bate— 

The  county  commissioners  levy  the  county  taxes, 
basing  the  levy  upon  an  itemized  statement  of  the 
county  expenses  for  the  ensuing  year,  and  no  greater 
levy  is  to  be  made  than  will  equal  the  amount  of 
such  expenses  with  an  excess  of  5  per  cent  of  the  same. 
The  rates  authorized  for  different  purposes  are : 

(1)  General  county  purposes,  including  support  of  the  poor,  not  to 
exceed  6  mills  on  the  dollar;  (2)  support  of  the  insane,  such  amount  as 
may  be  due  the  state  from  that  county;  (3)  county  roads,  not  to  exceed 
2  mills;  (4)  county  bridges,  not  to  exceed  2  mills;  (5)  county  sinking 
fund,  one  year's  interest  and  15  per  cent  of  the  principal.  The  total 
county  rate  is  not  to  exceed  in  any  one  year,  unless  by  vote,  the  sum  of 
8  mills  on  the  dollar. 

3.  Collection — 
Same  as  for  state  taxes. 

II.  Poll  tax. 

a.  School. — The  county  commissioners  may  levy  a  tax 
of  $1  on  each  elector  in  the  county  for  the  support  of 
the  common  schools.  This  tax  is  to  be  distributed  to 
the  several  school  districts  in  the  county  in  proportion 
to  the  number  of  children  between  6  and  20  years  of 
age  resident  therein. 

b.  Boad. — In  counties  not  wholly  organized  into  civil 
townships  the  county  commissioners  are  to  levy  on  each 
male  person  between  2 1  and  50  years  of  age,  living 
outside  any  organized  city,  town,  or  township — except 
paupers,  idiots,  and  lunatics,  or  otherwise  exempt — a 
road  poll  tax  of  $1.50,  which  may  be  paid  by  one  day's 
labor  on  the  highways. 

Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There  are  no  county  inheritance  or  special  corpora- 
tion taxes. 
V.  Business  taxes  and  licenses. 

Sale  of  liquors  at  retail,  $400  per  annum;  traveling  salesman  who 
solicits  by  the  jug,  $200  per  annum,  to  be  paid  in  each  county;  malt 
liquors,  wholesale,  $150  per  annum;  spirituous  liquors,  wholesale,  $500 
per  annum  (to  be  'paid  in  each  precinct,  town,  or  city  in  which  the 
business  is  carried  on) ;  distilleries,  $1,000  per  annum;  breweries,  $400 
per  annum;  hawkers  and  peddlers  with  wagon,  $50  to  $100  per  annum; 


peddlers  on  foot,  $25  to  $50  per  annum;  traveling  salesmen,  $25  to 
$75  per  annum;  dog  tax,  $1  per  annum,  which  is  credited  to  the 
school  district  when  collected. 

Municipal  Revenues. 

A.    TAXES. 

I.  The  general  property  tax. 

1.  Base — • 

The  property  included  and  the  assessment  and  equal- 
ization thereof  are  the  same  for  municipal  taxation  as 
for  state. 

2.  Bate— 

a.  Township. — The  electors  at  their  annual  town 
meeting  may  vote  such  sums  of  money  for  repairing 
and  constructing  bridges,  and  for  necessary  town 
charges  as  will  not  exceed  5  mills  on  the  dollar,  and 
for  fire  guards,  such  a  sum  as  will  not  exceed  5  mills 
on  the  dollar.  The  township  board  of  supervisors 
levies  the  highway  labor  and  road  tax  not  to  exceed 
50  cents  on  $100  of  valuation.  The  total  township  rate 
is  not  to  exceed  in  any  year  10  mills  on  the  dollar 
for  all  purposes,  including  the  tax  for  interest  and 
sinking  fund  for  bonds. 

b.  City. — The  city  council  is  to  levy  a  tax  for  gen- 
eral purposes  not  to  exceed  20  mills  on  the  dollar,  and 
in  addition  it  may  levy  a  tax  for  interest  and  sinking 
fund  for  city  bonds. 

c.  Town. — The  board  of  trustees  may  levy  a  tax  for 
the  general  fund,  interest,  and  sinking  fund,  the  tax 
for  general  purposes  not  to  exceed  5  mills  on  the  dollar. 

3.  Collection — 

The  collection  is  the  same  as  the  state,  by  the  county 
treasurer,  unless  the  county  has  adopted  the  optional 
provision  for  collection  by  the  township  and  city 
treasurers. 

II.  Poll  tax. 

The  township  board  of  supervisors  in  organized 
counties  is  to  assess  on  every  male  inhabitant  above 
21  and  under  50  years  of  age,  except  paupers,  idiots, 
lunatics,  and  those  otherwise  exempt,  one  day's  labor 
in  each  year  as  a  road  poll  tax. 

Any  city  or  town  in  the  state  may  levy  on  all  able- 
bodied  male  residents  between  21  and  50  years  of  age 
a  road  poll  tax  of  one  day's  labor,  which  may  be  com- 
muted at  a  fixed  sum,  not  to  exceed  $1.50. 

III.  Inheritance  tax. 

There  is  no  municipal  inheritance  tax. 

IV.  Corporation  taxes. 

There  is  a  tax  of  2  per  cent  of  the  premiums  received  upon  insur- 
ance policies  issued  on  property  in  any  city,  town,  or  village,  which 
is  collected  by  the  state  and  paid  over  to  the  local  fire  department. 

V.  Business  taxes  and  licenses. 

Any  township,  precinct,  town,  or  city  within  the  county,  in  which 
a  county  liquor  license  is  paid,  may  require  in  addition  from  each 
dealer  paying  such  a  license  a  sum  to  be  fixed  by  ordinance,  but  to 
be  not  less  than  $200  nor  more  than  $600. 


TAXATION  AND  REVENUE  SYSTEMS— TENNESSEE. 


791 


The  city  council  has  power  to  license  and  tax  hawkers,  peddlers, 
pawnbrokers,  keepers  of  ordinaries,  theatrical  and  other  exhibitions, 
shows  and  amusements,  ticket  scalpers,  employment  agencies,  cigars, 
cigarettes,  and  light  drinks,  baekmen,  draymen,  expressmen,  etc.,  and 
public  billiard  and  ball  alleys. 

Towns  may  license  auction  establishments,  peddlers,  and  public 
exhibitions. 

School  Revenues. 

The  constitution  establishes  a  perpetual  school  fund 
from  the  proceeds  of  the  sale  of  public  lands  granted 
by  the  United  States  for  the  use  of  public  schools,  and 
from  certain  other  sources  including  escheat,  fines, 
donations,  etc.     This  fund  is  to  be  apportioned  to  the 


several  school  districts  in  proportion  to  the  number  of 
school  children.  The  proceeds  of  the  county  poll 
taxes  and  dog  licenses  are  also  apportioned  for  school 
purposes. 

A  district  school  tax  is  to  be  levied  by  the  local  board 
of  education  not  exceeding  20  mills  on  the  dollar  on  all 
personal  and  real  property  within  the  district,  which 
tax  is  placed  on  the  roll  of  the  county  and  collected  by 
the  county  treasurer,  and  the  board  may  make  further 
levy  to  provide  a  sinking  fund  for  bonds.  The  electors 
have  the  power  to  instruct  the  district  school  board  as 
to  the  levy  of  school  taxes. 


TENNESSEE.1 


Tennessee  draws  her  principal  revenue  from  the 
general  property  tax  and  from  licenses.  The  distin- 
guishing feature  of  the  system  is  a  carefully  worked  out 
system  of  privilege  taxes  upon  the  exercise  of  various 
occupations  which  supplements  the  general  property 
tax.  There  are  special  corporation  taxes,  similar  in 
nature  to  the  privilege  taxes  on  individuals,  and  state 
poll  and  collateral  inheritance  taxes,  as  well  as  spe- 
cific taxes  on  land  transfers  and  on  litigation. 

CONSTITUTIONAL    PROVISIONS. 

ARTICLE    II. 

Sec.  28.  All  property,  real,  personal,  or  mixed,  shall  be  taxed,  but  the 
legislature  may  except  such  as  may  be  held  by  the  state,  by  counties, 
cities,  or  towns,  and  used  exclusively  for  public  or  corporation  purposes, 
and  such  as  may  be  held  and  used  for  purposes  purely  religious,  chari- 
table, scientific,  literary,  or  educational,  and  shall  except  one  thousand 
dollars'  worth  of  personal  property  in  the  hands  of  each  taxpayer  and 
the  direct  produce  of  the  soil  in  the  hands  of  the  producer  and  his  imme- 
diate vendee.  All  property  shall  be  taxed  according  to  its  value,  that 
value  to  be  ascertained  in  such  manner  as  the  legislature  shall  direct,  so 
that  taxes  shall  be  equal  and  uniform  throughout  the  state.  No  one 
species  of  property  from  which  a  tax  may  be  collected  shall  be  taxed 
higher  than  any  other  species  of  property  of  the  same  value,  but  the 
legislature  shall  have  power  to  tax  merchants,  peddlers,  and  privileges 
in  such  manner  as  they  may  from  time  to  time  direct.  The  portion  of 
a  merchant's  capital  used  in  the  purchase  of  merchandise  sold  by  him 
to  nonresidents  and  sent  beyond  the  state  shall  not  be  taxed  at  a  rate 
higher  than  the  ad  valorem  tax  on  property.  The  legislature  shall  have 
power  to  levy  a  tax  upon  incomes  derived  from  stocks  and  bonds  that 
are  not  taxed  ad  valorem.  All  male  citizens  of  this  state  over  the  age 
of  twenty-one  years,  except  such  persons  as  may  be  exempted  by  law  on 
account  of  age  or  other  infirmity,  shall  be  liable  to  a  poll  tax  of  not  less 
than  fifty  cents  nor  mpre  than  one  dollar  per  annum.     Nor  shall  any 

1  This  compilation  is  derived  mainly  from  the  following  sources: 

Code  of  Tennessee,  compiled  by  K.  T.  Shannon.  Marshall  &  Bruce 
Co.,  Nashville,  Tenn.,  1896. 

Acts  of  Tennessee,  1897:  Nashville,  Tenn.,  1897. 

Acts  of  Tennessee,  1898  (extra  session):  Nashville,  Tenn.,  1898. 

Acts  of  Tennessee,  1899:  Nashville,  Tenn.,  1899. 

Acts  of  Tennessee,  1901 :  Nashville,  Tenn.,  1901. 

Supplement  to  Code  of  Tennessee,  1897  to  1903,  by  R.  T.  Shannon. 
Marshall  &  Bruce  Co.,  Nashville,  Tenn.,  1903. 

Digest  of  the  Tennessee  Tax  Laws,  1901 ,  prepared  by  Theo.  II.  King, 
comptroller  of  the  treasury:  Nashville,  Tenn.,  1901. 


county  or  corporation  levy  a  poll  tax  exceeding  the  amount  levied  by 
the  state. 

Sec.  29.  The  general  assembly  shall  have  power  to  authorize  the  sev- 
eral counties  and  incorporated  towns  in  the  state,  to  impose  taxes  for 
county  and  corporation  purposes,  respectively,  in  such  manner  as  shall 
be  prescribed  by  law;  and  all  property  shall  be  taxed  according  to  its 
value,  upon  the  principles  established  in  regard  to  state  taxation.    *    *   * 

Sec.  30.  No-  article  manufactured  of  the  produce  of  this  state  shall 
be  taxed  otherwise  than  to  pay  inspection  fees. 


Sec.  1.  (Every  male  person  of  the  age  of  twenty-one  years,  being  a 
citizen  of  the  United  States  *  *  *  may  vote,  if  he  has  paid  the 
poll  taxes  assessed  against  him.  The  poll  is  to  be  levied  on  all  male 
citizens.) 

article  XI. 

Sec.  12.  (The  state  taxes,  derived  hereafter  from  polls,  shall  be  appro- 
priated to  educational  purposes,  in  such  manner  as  the  general  assembly 
shall  direct  by  law.) 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  County  assessors,  elected  for  a  term  of  four  years.  In  counties 
of  50,000  or  over,  there  is  one  assessor  for  the  whole  county.  In  other 
counties  each  civil  district  is  to  elect  an  assessor. 

(2)  County  board  of  equalizers,  composed  of  five  freeholders,  elected 
by  the  quarterly  court  of  each  county.  In  taxing  districts  of  60,000  or 
over  two  members  of  the  board  are  to  be  appointed  by  the  city  council, 
and  in  cities  of  5,000  to  60,000  one  member  of  the  board  is  to  be  so 
appointed. 

(3)  State  board  of  equalization,  composed  of  the  secretary  of  state, 
treasurer,  and  comptroller  of  the  treasury. 

(3J)  County  trustee,  tax  collector,  elected  for  two  years. 

(4)  Revenue  commissioners,  three  in  number,  elected  every  two 
years  by  the  quarterly  courts,  oi.e  of  whom  is  to  be  an  expert  account- 
ant.    They  are  to  inspect  reports  and  examine  accounts. 

(5)  Revenue  agents,  three  in  number,  appointed  by  the  comptroller 
for  a  term  of  two  years.  They  are  to  examine  the  records  of  collections 
and  disbursements,  and  may  also  bring  suit  against  delinquent  officers 
and  corporations.  To  indemnify  the  state  15  per  cent,  which  the  rev- 
enue agent  retains,  is  to  l>e  added  to  the  recovery  in  all  suits. 

(6)  State  tax  assessors,  commonly  known  as  the  railroad  commission, 
three  freeholders,  appointed  by  the  governor  biennially. 

(7)  Board  of  equalization  of  railroad  assessments,  composed  of  the 
governor,  treasurer,  and  secretary  of  state. 


792 


WEALTH,  DEBT,  AND  TAXATION. 


State  Revenues. 


a.    TAXES. 


I.    The  general  property  tax. 
1.  Base — 
a.    The  property  included  and  exempt. — All  property, 
real  and  personal,  is  subject  to  taxation  for  state, 
county,  and  municipal  purposes,  except    such   as  is 
declared  exempt. 

(1)  and  (2)  "Real  property"  and  "personal  property"  are  not  de- 
fined for  purposes  of  taxation. 

(3)  Exemptions  in  addition  to  public  property  are:  All  property 
belonging  to  any  religious,  charitable,  scientific,  or  educational  institu- 
tion not  used  in  secular  business;  all  cemeteries;  growing  crops;  the 
direct  produce  of  the  soil  in  the  hands  of  the  producer  or  his  immediate 
vendee,  and  manufactured  articles  of  the  state  in  the  hands  of  the 
manufacturer;  personal  property  of  the  value  of  $1,000  in  the  hands  of 
each  resident  taxpayer. 

I).  Assessment. — The  assessment  for  state,  county, 
and  municipal  purposes  is  made  by  the  county  assess- 
ors. Personal  property  is  to  be  assessed  annually,  real 
estate  (assessed  in  1902)  every  two  years,  and  both  at 
their  "  actual  cash  value,"  which  is  defined  to  mean 
the  price  at  which  the  property  would  sell  at  a  fair 
voluntary  sale.  The  assessment  refers  to  January  10. 
The  assessor  is  required  to  visit  all  realty,  see  person- 
ally each  taxpayer,  and  take  his  statement  of  all  prop- 
erty, real  and  personal,  without  regard  to  any  exemp- 
tion. The  taxpayer  must  make  oath  to  the  amount  of 
his  property  but  not  to  the  value  which  is  computed 
by  the  assessor.  The  penalty  for  refusal  to  make  the 
schedule  or  list  or  to  take  the  oath  is  a  fine  of  $10  to 
$50,  upon  conviction  of  the  misdemeanor.  Suits  for 
collection  can  not  be  brought  on  notes  and  choses  in 
action  not  listed. 


Changes  to  the  extent  of  $200  in  the  value  of  real  estate  are  to  be 
noted  annually  by  the  assessor,  as  well  as  any  improvements  thereon. 

The  amount  of  income  of  United  States  bonds  and  of  all  other 
stocks  and  bonds  not  taxed  ad  valorem  is  to  be  assessed  as  personalty. 
All  other  bonds  and  all  shares  of  stock,  except  when  the  corporate 
property  or  capital  stock  is  assessed  in  lieu  thereof,  are  to  be  listed. 
All  personal  property  which  is  a  part  of  the  capital  invested  in  the 
business  of  a  merchant,  factor,  or  manufacturer,  is  not  to  be  assessed 
separately  as  personalty,  but  as  part  of  the  capital. 

Manufacturers  are  assessed  on  the  raw  materials  and  articles  in 
process  of  manufacture,  but  the  value  of  articles  finished  from  the  prod- 
uce of  the  state  in  the  hands  of  the  manufacturer  is  to  be  deducted  in 
assessing  property  or  capital  stock. 

Merchants  are  assessed  on  the  average  capital  invested  in  the  business 
during  the  year,  which  is  found  by  dividing  the  sum  of  the  highest 
and  the  lowest  amounts  of  stock  by  two. 

Of  stocks  of  merchandise  sold  at  auction  or  on  commission,  one-third 
of  the  aggregate  amount  of  the  annual  sales  is  to  be  returned  for  taxa- 
tion. 

Capital  employed  in  trading,  where  there  is  no  stock  of  goods  on  hand, 
forms  the  basis  of  assessment. 

Corporations  are  assessed  on  their  real  estate  and  tangible  personalty 
as  individuals.  They  are  also  assessed  on  their  capital  stock  as  repre- 
senting franchises,  easements,  incorporeal  rights  and  privileges  at  the 
aggregate  market  value  of  the  shares  of  stock  and  bonded  debt,  less  the 
assessed  value  of  tangible  property.  The  stocks  and  bonds  are  not  other- 
wise assessed  to  the  corporation  or  individual  holders. 


Foreign  corporations  are  assessed  only  on  the  actual  cash  value  of  the 
corporate  property  in  the  state,  taking  into  consideration  the  franchise 
and  intangible  values  in  the  state. 

Bank  stock  is  assessed  in  the  name  of  the  shareholders  at  its  cash 
value  less  a  proportionate,  share  of  the  realty  and  tangible  personalty 
taxed  to  the  bank.     This  is  in  lieu  of  the  tax  on  capital  stock  of  banks. 

Railroad,  telegraph,  and  telephone  companies  are  assessed  by  the 
state  tax  assessors  on  the  basis  of  schedules  of  property  made  out  by  the 
companies.  There  is  a  penalty  of  $1,000  for  failure  to  file  the  schedule. 
In  making  the  valuation  of  property  the  assessors  are  to  have  in  view 
the  capital  stock,  the  corporate  property,  the  franchises  of  each  com- 
pany, and  the  gross  receipts  and  market  value  of  the  shares  of  stock  and 
bonded  debt. 

The  "road"  of  any  railroad  property  includes  all  tracks,  switches, 
bridges,  and  superstructures  of  every  kind.  The  "  line  "  of  any  telegraph 
or  telephone  company  includes  all  wires,  poles,  instruments,  and  rights 
of  way. 

The  "distributable  property"  includes  the  roadbed,  rolling  stock, 
franchises,  choses  in  action,  and  personal  property  having  no  actual 
situs.  This  is  to  be  valued  separately  from  other  property  and  $1 ,000 
exemption  deducted.  The  valuation  is  then  distributed  according  to 
the  value  per  mile.  The  "localized  property,"  including  the  depots  and 
other  property  with  an  actual  situs,  is  assessed  where  located,  by  regular 
county  and  city  assessors. 

Back  assessment  or  reassessment  of  taxes  on  property  that  has 
escaped  or  been  undervalued  is  made  by  the  county  court  clerk  in  the 
case  of  merchants'  taxes,  or  by  the  county  trustee  in  the  case  of  other 
taxes.  A  penalty  of  25  per  cent  may  be  imposed  for  violation  of  the 
revenue  provisions  in  the  back  assessment. 

c.  Equalization. — The  county  board  of  equalizers 
compares  and  equalizes  the  county  assessments, 
eliminates  property  exempt,  and  hears  complaints. 
The  board  may  increase  or  lower  the  entire  assessment 
roll,  or  any  item  therein,  to  conform  to  the  actual  cash 
value. 

The  state  board  of  equalization  at  its  biennial  ses- 
sions is  to  equalize  the  assessments  of  all  properties  in 
the  state,  except  such  as  are  to  be  equalized  by  the 
governor,  secretary  of  state,  and  treasurer. 

The  assessment  of  railroad,  telegraph,  and  telephone  companies,  as 
made  by  the  state  tax  assessors  of  railroads,  is  equalized  by  a  board  of 
equalization  composed  of  the  governor,  secretary  of  state,  and  treasurer. 

2.  Rate— 

Taxes  are  levied  by  statute  at  the  rate  of  50  cents  on  every  $100 
worth  of  property,  of  which  35  cents  is  for  general  state  purposes  and 
15  cents  for  school  purposes. 

3.  Collection — 

All  taxes,  including  state,  county,  railroad,  municipal, 
highway,  and  school,  are  collected  by  the  county  trus- 
tee. Taxes  are  payable  the  first  Monday  in  October, 
except  municipal  taxes  of  cities  having  a  population 
of  100,000  or  over  and  those  of  municipal  corporations 
authorized  to  collect  their  own  taxes.  Taxes  are  a  hen 
on  the  property  assessed  from  the  10th  of  January, 
and  are  delinquent  after  the  1st  of  March,  after  which 
there  is  a  penalty  of  1  per  cent  a  month.  They  may 
be  collected  by  distress  and  sale. 

Taxes  on  the  stock  of  banks  and  loan  and  investment  companies  are 
to  be  collected  from  the  president  of  the  corporation. 

Taxes  assessed  on  railroad,  telegraph,  and  telephone  companies  on 
behalf  of  the  state  are  collected  by  the  comptroller,  but  taxes  due  any 
county  or  city  are  collected  by  the  county  trustee. 


TAXATION  AND  REVENUE  SYSTEMS— TENNESSEE. 


793 


If  any  property  escapes  assessment,  it  is  the  duty  of  the  trustee  to 
assess  the  same  and  report  the  taxes  collected  as  "picked-up"  taxes. 
The  trustee  can  not  receipt  for  the  property  tax  if  the  poll  tax  is  unpaid. 

The  trustee  is  compensated  by  commissions  from  the  moneys  col- 
lected. 

II.  Poll  tax. 

Every  male  inhabitant  between  the  ages  of  21  and 
50  years,  except  persons  who  are  deaf,  dumb,  blind, 
or  incapable  of  labor  and  of  earning  a  livelihood,  are 
to  pay  an  annual  tax  of  $l'for  school  purposes.  This 
tax  is  distributed  among  the  school  districts  of  the 
county  where  collected  in  proportion  to  the  number  of 
school  children  in  such  district.  It  appears  only  in 
reports  of  county  revenue.  This  tax  must  be  paid 
before  the  property  tax  will  be  received,  and  its  pay- 
ment is  a  prerequisite  of  the  enjoyment  of  the  elective 
franchise.  Delinquent  poll  taxes  may  be  collected  by 
distress  and  sale  or  garnishment,  and  the  officer  is 
entitled  to  12J  per  cent  commission  and  fees  for  his 
services. 

III.  Inheritance  tax. 

All  estates,  real,  personal,  or  mixed,  passing  by 
will  or  under  the  intestate  laws  of  the  state,  or  trans- 
ferred in  contemplation  of  death,  other  than  to  the 
father,  mother,  husband,  wife,  and  lineal  descendants, 
are  subject  to  a  duty  of  $5  on  every  $100  of  clear  value. 
Estates  valued  at  less  than  $250  are  exempt. 

IV.  Corporation  taxes. 

Corporations,  like  individuals,  are  subject  to  the  ad 
valorem  tax  on  property.  The  value  of  intangible 
property  is  reached  by  an  assessment  of  the  capital 
stock  and  bonded  debt. 

Privilege  taxes  are  collected  annually  by  the  comp- 
troller from  the  following  corporations,  in  lieu  of  all 
other  taxes  except  ad  valorem: 

Express  companies — if  lines  in  the  state  are  less  than  100  miles, 
$500;  more  than  100  miles,  $2,000;  sleeping  car  companies,  $2,500; 
news  companies,  $500.  Railroad  companies — companies  exempt  from 
ad  valorem  tax,  per  mile,  $120  (special  contracts  from  eleven  com- 
panies to  pay  $4,500  for  ten  years  in  lieu  of  all  other  taxes  authorized). 
Trading  stamp  companies,  in  each  county,  $500;  merchants  using 
stamps,  $250.  Telegraph  companies — 25  to  100  miles  of  wire,  $20:  100 
to  300  miles  of  wire,  $200;  300  to  1,000  miles  of  wire,  $700;  1,000  to 
6,000  miles,  for  each  100  miles  over  1,000,  $20;  for  each  100  miles  over 
6,000,  $10.  Railroad  terminal  companies — counties  of  90,000  inhabit- 
ants, $.500;  70,000  to  90,000,  $400;  50,000  to  70,000,  $300.  Telephone 
companies — counties  of  50,000  inhabitants  or  over,  each  instrument, 
50  cents;  30,000  to  50,000,  each  instrument,  35  cents;  less  than  30,000, 
each  instrument,  20  cents  Insurance  companies  are  required  to  pay 
the  insurance  commissioner — foreign  fire,  life,  and  all  other  companies 
of  other  states,  2\  per  cent  of  the  gross  premium  receipts  in  the  state, 
payable  semiannually,  January  and  July;  mutual  fire  companies  of  the 
state  doing  business  outside  county  of  domicile.  $300.  Building  and 
loan  associations— capital  paid  in,  up'to  $10,000,  $20;  $10,000  to  $25,000, 
$47:  $25,000  to  $50,000,  $95;  $50,000  to  $100,000,  $140;  $100,000  to 
$1.50,000,  $187.50;  $150,000  to  $200,000,  $280;  $200,000  to  $250,000, 
$375;  $250,000  to  $300,000,  $468:  $300,000  to  $350,000,  $.562.50; 
$3.50,000  to  $400,000,  8656;  $400,000  to  $450,000,  $750;  $450,000  to 
$.500,000,  $893;  each  additional  $100,000  or  fractional  part,  $92.50. 

There  is  a  penalty  of  1  per  cent  per  day  for  the  nonpayment  of  privi- 
lege taxes,  and  to  exercise  any  privilege  without  first  paying  the  tax  is 
a  misdemeanor  for  which  the  fine  is  $50  to  $.500. 


V.  Business  taxes  and  licenses. 

The  following  occupations  are  declared  to  be  privi- 
leges, and  the  taxes  thereon  are  collected  annually  by 
the  county  court  clerk  unless  otherwise  stated. 

A  privilege  is  defined  to  be  the  exercise  of  a  business 
or  occupation  which  requires  a  license.  The  imposi- 
tion of  a  privilege  tax  is  not  to  be  construed  as  a 
release  or  exemption  from  the  ad  valorem  tax  unless 
specially  provided. 

Merchants  are  to  pay,  in  addition  to  the  ad  valorem  tax  upon  the 
average  capital  invested  by  them  in  their  business  of  50  cents  on  $100, 
a  privilege  tax  of  15  cents  on  each  $100,  7i  cents  of  which  is  for  school 
purposes  and  7$  cents  for  state  purposes.  This  tax  is  never  to  be  less 
than  $5;  $5  is  to  be  paid  when  the  license  is  taken  out  and  equally 
divided  between  the  state  and  the.  county. 

Abstract  companies — cities  of  35,000  inhabitants  or  over,  $50;  10,000 
to35,000,$25;  less  than  10,000, $10.  Advertising  companies — street  cars, 
counties  of  60,000  inhabitants  or  over,  $100;  counties  of  less  than  60,000, 
$25;  dummy  cars  or  railroad  cars,  counties  of  50,000  inhabitants  or 
over,  $.50;  counties  of  less  than  50,000,  $25;  railroad  depots  in  each 
county,  $10.  Artists  and  photographers — cities  and  taxing  districts  of 
over  20,000  inhabitants,$25;  6,000  to20,000,$15;  2,000 to 6,000,$7.50; 
under  2,000,  $5;  galleries,  outside  cities  and  towns,  $3;  traveling  gal- 
leries, for  the  state,  $50:  agents  for  picture  enlarging  outside  state,  $20. 
Auctioneers— cities  of  35,000  inhabitants  or  over,  $20;  20,000  to  3.5,000, 
$15:  6,000  to  20,000,  $10;  6,000  or  less,  $5;  outside  of  cities,  transient 
auctioneers,  $20  per  week.  Baseball  parks — counties  of  50,000  inhabit- 
ants or  over,  $25;  20,000  to  50,000,  $15;  less  than  20,000,  $10;  traveling 
ball  teams  not  playing  in  regular  parks,  $10.  Breweries — agents  of  brew- 
eries in  cities  of  20,000  inhabitants  or  over,  $250;  from  7,500  to  20,000, 
$125;  7,500  or  under,  $50.  Billposters— cities  of  35,000  inhabitants 
or  over,  $50;  7,000  to  35,000,  $30;  2,000  to  7,000,  $10.  Bicycle  dealers 
or  renters,  $10.  Bottlers  (other  than  natural  mineral  waters) — coun- 
ties of  50,000  inhabitants  or  over,  $75;  35,000  to  50,000,  $50;  2.5,000  to 
35,000,  $25;  less  than  25,000,  $10.  Brokers  (other  than  real  estate  or 
merchandise) — cities  of  30,000  inhabitants  or  over,  $50;  20,000  to 
30,000,  $40;  less  than  20,000,  $25;  outside  of  cities,  $25.  Bankers  and 
insurance  companies  must  also  pay  this  tax  if  engaged  in  brokerage 
business.  Brokers  (merchandise) — cities  of  50,000  inhabitants  or  over, 
$30;  20,000  to  50,000,  $20;  10,000  to  20,000,  $15;  less  than  10,000, 
$7.50.  Butchers— cities  of  20,000  inhabitants  or  over,  $15;  10,000  to 
20,000,  $10;  6,000  to  10,000,  $7.50;  3,000  to  6,000,  $5;  1,000  to  3,000, 
$5.  Wholesale  dealers  in  fresh  meat  and  cold  storage  companies- 
counties  of  50,000  inhabitants  or  over,  $150;  less  than  50,000  and  over 
40,000,  $75;  less  than  40,000,  $10.  Cigar  stands— cities  of  20,000  inhab- 
itants or  over,  $10;  under  20,000,  $5.  Check  room — when  the  charge  is 
10  cents  per  day,  $20;  when  the  charge  is  less  than  10  cents  per  day, 
$10.  Circuses  and  menageries — counties  of  50,000  inhabitants  and 
over,  $200  per  day;  15,000  to  50,000,  $150  per  day;  less  than  15,000, 
$25  per  day;  sleight  of  hand,  $20  per  day;  other  exhibitions,  $15  per 
day,  $30  per  week,  $100  per  month;  traveling  companies  (outside  taxed 
theaters),  $5  per  day, $2.5  per  week,  $100  per  month;  concerts,  magic 
lantern  shows,  etc.,  $5  per  day.  Trained  animal  exhibitions— counties 
of  50,000  inhabitants  or  over,  $30  per  day;  30,000  to  50,000,  $25  per 
day;  less  than  30,000,  $15  per  day.  Wild  West  shows— counties 
of  50,000  inhabitants  or  over,  $1.50  per  day;  less  than  50,000,  $75 
per  day.  Coal  and  coke  dealers; — cities  of  35,000  inhabitants  or  over, 
$30;  6,000  to  35,000,  $15;  less  than  6,000,  $5;  outside  cities,  $5. 
Coal  oil  or  petroleum  products— cities  of  30,000  inhabitants  or  over, 
$200;  10,000  to  30,000,  $100;  5,000  to  10,000,  $75;  2,000  to  5,000, 
$50:  less  than  2,000,  $25.  Collection  agencies— cities  of  20,000  in- 
habitants or  over,  $20;  less  than  20,000,  $10.  Commercial  agen- 
cies—cities of  20,000  inhabitants  or  over,  $125;  under  20,000,  $50; 
local,  $11.  Construction  companies— foreign,  in  each  county,  $50; 
domestic,  in  each  county,  $15.  Cottonseed-oil  mills— plants  pressing 
under  1,000  tons  annually,  $15;  1,000  to  5,000,  $30;  5,000  to  10,000, 
$40;  10,000  to  20,000.  $60;  20,000  to  30,000,  $100;  30,000  to  50,000, 


794 


WEALTH,  DEBT,  AND  TAXATION. 


$150;  50,000  to  75,000,  $200:  75,000  to  100,000,  $300;  100,000  or 
over,  $350.  Cotton  compresses— pressing  1  to  20,000  bales  per  annum, 
$25;  20,000  to  50,000  bales  per  annum,  $50;  50,000  to  100,000  bales 
per  annum,  $100;  100,000  bales  or  over  per  annum,  $150.  Cotton 
factors— cities  of  20,000  inhabitants  or  over,  $25;  10,000  to  20,000,  $1.5; 
5,000  to  10,000,  $7.50;  less  than  5,000,  $5.  Distillers  of  whisky- 
capacity  10  barrels  per  day  or  over,  $250;  5  to  10  barrels  per  day,  $150; 
2  to  5  barrels  per  day,  $75;  1  to  2  barrels  per  day,  $25;  less  than  1  bar- 
rel per  day,  $10.  Distillers  of  brandy — capacity  5  barrels  or  over  per 
day,  $10;  less  than  5  barrels  per  day,  $5.  Dealers  in  theater  tickets — 
cities  of  40,000  inhabitants  or  over,  $15;  20,000  to  40,000,  $10;  10,000 
to  20,000,  $5.  Lunch  houses  and  stands— cities  of  8,000  inhabitants  or 
over,  $10;  5,000  to  8,000,  $5;  under  5,000,  $2.50.  Feather  renovators, 
each  county,  $250.  Buying  fees  of  witnesses  or  officers  of  court — 
counties  of  .50,000  inhabitants  or  over,  $100;  20,000  to  50,000,  $.50; 
10,000  to  20,000,  $5;  less  than  10,000,  $2.50.  Electric  light  companies 
—cities  of  100,000  inhabitants  or  over,  $750;  50,000  to  100,000,  10,000 
lights1  or  over,  $500;  7,500  to  10,000  lights,  $100;  5,000  to  7,500  lights, 
$75;  2,500  to  5,000  lights,  $,50;  under  2,500  lights,  $20;  cities  of  20,000 
to  50,000  inhabitants,  5,000  lights  and  over,  $250;  2,500  to  5,000 
lights,  $50;  under  2,500  lights,  $20;  cities  of  10,500  to  20,000  inhabit- 
ants, 2,500  lights  and  over,  $150;  under  2,500  lights,  $20;  cities  of 
4,000  to  10,500  inhabitants,  $75;  3,000  to  4,000,  $40;  2,000  to  3,000, 
$20;  under  2,000,  $10.  Ferries — cities  of  10,000  inhabitants  or  over 
(within  5  miles),  $50;  5,000  to  10,000,  $30;  3,000  to  5,000,  $20;  less 
than  3,000,  $5,  counties  more  than  5  miles  from  cities,  $5.  Flying 
jennies— cities  of  .50,000  inhabitants,  $100;  20,000  to  50,000,  $50;  5,000 
to  20,000,  $25;  under  5,000,  $15;  counties  outside  cities,  $15.  Fortune 
tellers,  $10.  Fruit  stands — cities  of  50,000  inhabitants  or  over,  $5; 
under  50,000,  $2.50.  Futures  on  exchange — cities  of  30,000  inhabitants 
or  over,  $400;  20,000  to;30,000,  $300;  less,  than  20,000,  $200.  Games- 
billiard,  pool  tables,  alleys,  shooting  galleries,  etc. — cities  of  20,000 
inhabitants  or  over,  $25;  10,000  to  20,000,  $15;  under  10,000,  $10;  coun- 
ties outside  cities,  $25;  throwing  rings  and  other  devices,  $10.  Gas 
companies — cities  of  70,000  inhabitants  or  over,  $700;  30,000  to  70,000, 
$350;  20,000  to  30,000,  $250;  10,000  to  20,000,  $125;  4,000  to  10,000,  $75; 
under  4,000,  $50  (cities  of  over  8,000  supplying  gas  for  commercial 
purposes  must  pay  this  tax).  Hotels — for  each  room,  50  cents;  towns 
of  1,000  to  5,000  inhabitants,  25  cents;  under  1,000,  no  tax;  summer 
resort  hotels,  50  cents.  Hucksters — citiesof  35,000  inhabitants  or  over, 
$5;  5,000  to  35,000,  $3;  3,000  to  5,000,  $2;  under  3,000,  $1.  Ice— cities 
of  35,000  inhabitants  or  over,  $100;  15,000  to  35,000,  $75;  6,000  to 
15,000,  $.50;  2,500  to  6,000,  $10;  1,000  to  2,500,  $5;  ice  sold  from  cars, 
in  each  county,  $50;  dealers  using  wagons,  per  wagon,  $5  (tax  does  not 
apply  in  towns  under  1,000).  Intelligence  offices,  $10;  itinerants,  physi- 
cians, etc.,  $100.  Land  stock  companies — capital  $100,000  or  over,  $25; 
$50,000  to  $100,000,  $15;  under  $50,000,  $10.  Laundries— cities  of  20,000 
inhabitants  or  over,  $50;  5,000  to  20,000,  $25;  1,000  to  5,000,  $7.50; 
under  1,000,  no  tax;  agents  for  laundries  outside  of  state,  $10.  Light- 
ning rod  dealers  and  agents,  in  each  county,  $100:  lighting  companies 
(other  than  electric  and  gas),  $100;  lights  for  streets,  railroad  and 
sleeping  cars — cities  of  50,000  inhabitants  or  over,  $100;  20,000  to 
50,000,  $25;  under  20,000,  $10.  Liquor  dealers  (in  addition,  taxed  as 
other  merchants) — wholesale,  $200;  retail — cities  of  6,000  inhabitants 
or  over,  $200;  under  6,000,  $1.50;  boats  and  cars,  $200.  Livery,  sale, 
and  feed  stables — cities  of  10,000  inhabitants  or  over,  each  stall,  40 
cents;  5,000  to  10,000,  20  cents;  under  5,000,  10  cents.  Lumber  deal- 
ers, privilege  and  ad  valorem  tax  as  merchants.  Slot  machines,  music 
boxes,  phonographs,  etc. — nickel-in-the-slot,  $10;  penny-in-the-slot, 
$2.50.  Chance  or  prize  machines,  or  those  kept  by  saloon  keepers,  $100. 
Insurance  agents,  commencing  business  between  January  1  and  April  1, 
$10;  commencing  business  between  April  1  and  July  1,  $7.50;  com- 
mencing business  between  July  1  and  October  1,  $5;  commencing 
business  after  October  1,  $2.50.  Parks  (admission  fee),  $100.  Pawn- 
brokers (also  taxed  as  merchants) — cities  of  30,000  inhabitants  or  over, 

1  16  candlepower  incandescent  light,  60  volts  per  hour. 


$150;  8,000  to  30,000,  $75;  6,000  to  8,000,  $75;  under  6,000,  $.50;  out- 
side cities,  $10.  Playing  cards — wholesale.  $20;  retail,  $5.  Ped- 
dlers, on  foot,  in  each  county,  $10;  with  horse  and  vehicle,  each  county, 
$20;  more  than  one  horse,  in  each  county,  $10;  patent  medicine,  on 
foot  or  horse,  in  each  county,  $150;  patent  medicine, horse  and  wagon, 
in  each  county,  $200;  school  apparatus,  maps,  charts,  in  each  county, 
$150;  horse  and  vehicle,  $300;  each  additional  horse,  $100;  coal  oil 
and  gasoline,  $10.  Park  and  race  track  associations,  $200.  Plumbers 
and  gas  fitters  (taxed  also  as  merchants) — cities  of  35,000  inhabitants 
orover,$20;  10,000  to 35,000, $15;  5,000  to  10,000, $10;  under .5,000,  $5. 
Dealers  in  ranges  and  clocks  (not  required  of  merchants) — counties  of 
35,000  inhabitants  or  over,  $25;  20,000  to  35,000,  $20;  under  20,000,  $15. 
Race  tracks  and  bookmakers — 1  mile  track,  $200;  one-half  mile  track, 
$l.c0;  one-fourth  mile  track,  $100;  bookmakers,  per  book,  $100.  Rail- 
road ticket  scalpers — cities  of  25,000  inhabitants  or  over,  $75;  10,000  to 
25,000,  $50;  under  10,000,  $25.  Real  estate  dealers— cities  of  over 
50,000  inhabitants,  $40;  35,000  to  50,000,  $30;  20,000  to  35,000,  $20; 
10,000to20,000,$15;  under  10,000, $5;  counties  outside  cities, $5.  Stock- 
yards, pens,  etc. — counties  of  60,000  inhabitants  or  over,  $75;  40,000  to 
60,000,  $50;  under  40,000,  $15.  Sewing  machine  companies  and 
dealers — (in  lieu  of  all  taxes]except  merchants'  privilege  and  ad  valorem 
taxes), $200:  for  each  agent  (except  merchants),  $5.  Securities  (dealers 
in  notes,  etc.) — counties  of  50,000  inhabitants  or  over,  $50;  30,000  to 
50,000,  $25;  15,000  to  30,000,  $10;  under  15,000,  $5.  Street  car  com- 
panies and  dummy  railroads — cities  of  35,000  inhabitants  or  over,  per 
mile,  $8;  25,000  to  35,000,  per  mile,  $6;  10,000  to  20,000,  per  mile,  $3; 
under  10,000,  per  mile,  $1 .50.  Express  or  parcel  cars — counties  of  over 
50,000  inhabitants,  $50;  under  50,000,  $25.  Skating  rinks— cities  of 
20,000  inhabitants  or  over,  $30:  10,000  to  20,000,  $15;  5,000  to  10,000, 
$10;  under  5,000,  $5;  outside  cities,  $5.  Theaters— cities  of  40,000 
inhabitants  or  over,  $200;  20,000  to  40,000,  $100;  10,000  to  20,000,  $50; 
5,000  to  10,000,  $25;  3,000  to  5,000,  $15;  under  3,000,  $10;  counties 
outside  cities,  $50.  Turnpikes  per  tollgate — toll  both  ways,  counties  of 
50,000  inhabitants  or  over,  $50;  30,000  to  50,000,  $40;  under  30,000, 
$12;  companies  increasing  tolls,  per  gate,  $250.  Undertakers — cities 
of  50,000  inhabitants  or  over,  $50;  20,000  to  50,000,  $30;  10,000  to 
20,000,  $20;  6,000  to  10,000,  $10;  under  6,000,  $5;  counties  outside 
cities,  $5.  Variety  theaters,  $200.  Warehouses,  elevators,  and  storage 
rooms — cities  of  8,000  inhabitants  or  over,  $50;  under  8,000,  $25; 
8,000  or  over  (paying  tax  as  commission  merchants),  $25;  under  8,000 
(paying  tax  as  commission  merchants),  $15;  counties  over  30,000  out- 
side cities,  $25.  Water  companies — cities  of  50,000  inhabitants  or  over, 
$800;  35,000  to  50,000,  $600;  20,000  to  35,000,  $400;  6,000  to  20,000, 
$100;  under  6,000,  $25. 

VI.  Transfer  tax. 

On  all  transfers  of  realty  there  is  levied  a  state  tax  of 
$1  per  $1,000  of  consideration  (which  is  not  to  be  less 
than  the  value  of  the  property).  This  tax  on  land 
sales  is  held  to  be  not  a  privilege  but  a  specific  tax. 

VII.  Litigation. 

The  following  taxes  are  to  be  charged  to  loser  in  bill  of  costs:  Each  suit 
inlaw  or  equity  in  court  of  record,  $2.50;  each  indictment  or  present- 
ment, $5;  appeal  to  supreme  court  in  criminal  cases  where  defendant  un- 
successful, $7.50;  appeals  from  circuit  or  chancery  to  supreme  court, 
$5;  appeal  from  justice  of  the  peace,  $2.50. 

B.    FEES. 

Secretary  of  state. — Recording  domestic  charter,  $10;  certified  copy 
domestic  charter,  $10;  certified  copy  foreign  charter,  $20;  abstract,  for- 
eign charter,  $20;  filing  foreign  charter,  $20;  filing  articles  of  consolida- 
tion (in  addition  to  tax),  $25;  filing  articles  of  agreement  between  corpo- 
rations, $25;  charter  or  certificate  of  municipal  corporations,  $50;  com- 
mission of  notary  public,  $3;  commission  of  commissioner  of  deeds,  $10; 
commission  of  appointee  of  governor,  $5;  charters  of  incorporation,  not 


TAXATION  AND  REVENUE  SYSTEMS— TENNESSEE. 


795 


for  religious  or  educational  purposes,  $25;  foreign  corporations,  filing 
charter,  $100  (insurance  companies  may  deduct  fees  to  insurance  com- 
missioner). 

Foreign  corporations  on  filing  charter,  for  privilege  of  entering  state 
pav  to  the  secretary  of  state  $100.  (Insurance  companies  may  deduct 
fees  paid  insurance  commissioner.) 

Charter  tax  on  granting  of  charters  or  amendments  is  one-tenth  of  1 
per  cent  upon  the  capital  stock  fixed  or  the  increase.  This  is  to  be 
collected  by  the  secretary  of  state  as  a  privilege  tax.  Corporations  for 
literary  or  religious  purposes  are  exempt. 

Consolidation  of  companies,  by  transfer,  lease,  or  otherwise,  is  sub- 
ject to  a  tax  of  one-tenth  of  1  per  cent  on  the  capital  stock  of  both  com- 
panies, which  is  to  be  collected  by  the  secretary  of  state  as  a  privilege 
tax. 

Insurance  commissioner. — Domestic  mutual  or  assessment  fire  insur- 
ance— filing  copy  of  charter,  etc.,  $15;  filing  annual  statement,  $10. 
Other  companies — filing  copy  of  charter,  $30:  annual  statement,  life, 
$25;  annual  statement,  other  than  life,  $15;  certificate  to  agent,  $2. 

County  Revenues. 

a.   TAXES. 

I.  The  general  property  tax. 

1.  Base — 

The  property  included  and  the  assessment  andequali- 
zation  thereof  are  the  same  for  county  taxes  as  for 
state. 

2.  Rate — 

The  several  county  courts  are  authorized  to  levy  an 
annual  county  tax  on  every  $100  of  taxable  property, 
not  exceeding  30  cents  on  $100,  and  exclusive  of  the 
tax  for  public  roads,  pikes,  schools,  and  interest  on  the 
county  debts  and  of  the  taxes  for  other  special  pur- 
poses. 

3.  Collection — 
Same  as  for  state  taxes. 

II.  Poll  tax. 

Same  as  the  state  poll  tax. 
Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There  are  no  county  inheritance  or  corporation  taxes. 
V.  Business  taxes  and  licenses. 

Each  county  is  authorized  to  levy  a  privilege  tax 
upon  merchants  and  upon  other  occupations  declared 
to  be  privileges,  not  exceeding  in  amount  that  levied 
by  the  state  for  state  purposes.  The  imposition  of  a 
privilege  tax  is  not  to  be  construed  as  an  exemption 
from  an  ad  valorem  tax  unless  so  specially  provided. 

Marriage  licenses  (to  be  used  for  school  purposes),  $1. 

Municipal  Revenues. 

a.   TAXES. 

I.    The  general  property  tax. 
1.  Base — 
The  property  included  and  the  assessment  and  equali- 
zation thereof  are  the  same  for  municipal  taxation  as 
for  state. 


2.  Rate— 

Municipalities  of  over  20,000  inhabitants,  15  mills  on  the  dollar; 
12,000  to  20.000,  12J  mills  on  the  dollar;  5,000  to  12,000,  10  mills  on 
the  dollar:  under  5,000,  7$  mills  on  the  dollar. 

3.  Collection — 

The  collection  is  the  same  as  for  state,  except  that 
municipal    corporations    having    power    under    their 
charter  to  collect  their  own  taxes  on  property,  privi- 
leges, and  polls  may  provide  therefor  by  ordinance. 
II.  Poll  tax. 

The  municipal  poll  tax  is  not  to  exceed  $1,  and  the 
same  ratio  between  the  amount  of  the  poll  tax  and  the 
rate  on  property  is  to  be  observed  as  in  state  taxation. 
Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There  are  no  inheritance  or  corporation  taxes. 
V.  Business  taxes  and  licenses. 

Each  municipality  is  authorized  to  levy  the  same 
"privilege  taxes"  as  the  state  and  county. 

Taxing  District  Revenues. 

The  several  towns,  cities,  or  communities  in  the  state, 
the  population  of  which  does  not  exceed  30,000  and  the 
charters  of  incorporation  of  which  have  been  repealed 
or  shall  hereafter  be  repealed  or  abolished,  are  created 
taxing  districts,  to  be  styled  taxing  districts  of  the  sec- 
ond class  (and  known  by  the  name  of  the  town  or  city 
at  the  time  the  corporation  became  extinct) . 

After  the  debts  of  the  taxing  districts  have  been 
compromised  with  the  creditors,  the  commissioners 
may  by  ordinance  levy  taxes  upon  all  property  tax- 
able for  state  purposes  and  upon  all  privileges  and 
polls,  to  defray  the  expenses  and  pay  the  compro- 
mised debts.  A  tax  of  $1  on  every  $100  is  levied  on 
property  and  one  on  merchants  equal  to  the  state  tax. 

School  Revenues. 

The  interest  on  the  permanent  school  fund  and  other 
state  school  moneys  is  apportioned  by  the  comptroller 
among  the  several  counties  according  to  their  school 
population. 

The  state  poll  tax  goes  to  the  public  schools  in  the 
district  where  collected,  and  the  state  tax  of  1^  mills 
on  the  dollar  assessed  on  all  property  is  paid  over  to 
the  county  trustee  in  the  county  where  collected  for 
distribution  to  the  school  districts.  In  addition,  when 
the  income  from  the  state  fund  and  other  sources  is 
not  sufficient  to  keep  up  a  public  school  for  five  months 
in  the  year,  counties  may  levy  on  property,  polls,  and 
privileges  enough  to  keep  them  up  six  months,  but 
such  tax  is  not  to  exceed  the  entire  state  tax. 

Municipal  corporations  may  also  impose  an  addi- 
tional tax. 


796 


WEALTH,  DEBT,  AND  TAXATION. 


TEXAS.1 


Texas  depends  primarily  upon  the  general  property 
tax  for  state,  county,  and  local  revenues.  There  is  an 
elaborate  system  of  "occupation"  taxes  on  various 
lines  of  business,  incorporation  and  franchise  taxes  on 
corporations,  and  some  special  taxes  on  the  gross 
receipts  of  transportation  and  insurance  companies. 
These  taxes  are  in  addition  to  the  general  property  tax. 
There  are  also  state,  county,  and  municipal  poll  taxes, 
but  no  inheritance  tax. 

CONSTITUTIONAL    PROVISIONS. 

ARTICLE  via. 

Sec.  1.  Taxation  shall  be  equal  and  uniform.  All  property  in  this 
state,  whether  owned  by  natural  persons  or  corporations,  other  than 
municipal,  shall  be  taxed  in  proportion  to  its  value,  which  shall  be  ascer- 
tained as  may  be  provided  by  law.  The  legislature  may  impose  a  poll 
tax.  It  may  also  impose  occupation  taxes,  both  upon  natural  persons 
and  upon  corporations  other  than  municipal,  doing  any  business  in 
this  state.  It  may  also  tax  incomes  of  both  natural  persons  and  cor- 
porations other  than  municipal,  except  that  persons  engaged  in  me- 
chanical and  agricultural  pursuits  shall  never  be  required  to  pay  an 
occupation  tax:  Provided,  That  two  hundred  and  fifty  dollars'  worth  of 
household  and  kitchen  furniture  belonging  to  each  family  in  this  state 
shall  be  exempt  from  taxation:  And  provided  further,  That  the  occupa- 
tion tax  levied  by  any  county,  city,  or  town  for  any  year  on  persons  or 
corporations  pursuing  any  profession  or  business  shall  not  exceed  one- 
half  of  the  tax  levied  by  the  state  for  the  same  period  on  such  profession 
or  business. 

Sec.  2.  All  occupation  taxes  shall  be  equal  and  uniform  upon  the 
same  class  of  subjects  within  the  limits  of  the  authority  levying  the  tax, 
but  the  legislature  may  by  general  laws  exempt  from  taxation  public 
property  used  for  public  purposes;  actual  places  of  religious  worship; 
places  of  burial  not  held  for  private  or  corporate  profit;  all  buildings 
used  exclusively  and  owned  by  persons  or  associations  of  persons  for 
school  purposes  (and  the  necessary  furniture  of  all  schools),  and  institu- 
tions of  purely  public  charity;  and  all  laws  exempting  property  from 
taxation  other  than  the  property  above  mentioned  shall  be  void. 

Sec.  3.  Taxes  shall  be  levied  and  collected  by  general  laws  and  for 
public  purposes  only. 

Sec.  4.  The  power  to  tax  corporations  and  corporate  property  shall 
not  be  surrendered  or  suspended  by  act  of  the  legislature  by  any  contract 
or  grant  to  which  the  state  shall  be  a  party. 

Sec.  5.  All  property  of  railroad  companies  of  whatever  description 
lying  or  being  within  the  limits  of  any  city  or  incorporated  town  within 
this  state  shall  bear  its  proportionate  share  of  municipal  taxation,  and 
if  any  such  property  shall  not  have  been  heretofore  rendered,  the  authori- 
ties of  the  city  or  town  within  which  it  lies  shall  have  power  to  require  its 
rendition  and  collect  the  usual  municipal  tax  thereon,  as  on  other  prop- 
erty lying  within  said  municipality. 

Sec.  6.  (No  money  shall  be  drawn  from  the  treasury  but  in  pursuance 
of  specific  appropriations  made  by  law;  nor  shall  any  appropriation  of 
money  be  made  for  a  longer  term  than  two  years,  except  by  the  first 
legislature  to  assemble  under  this  constitution.) 

Sec.  8.  All  property  of  railroad  companies  shall  be  assessed  and  the 
taxes  collected  in  the  several  counties  in  which  said  property  is  situated, 
including  so  much  of  the  roadbed  and  fixtures  as  shall  be  in  each  county. 
The  rolling  stock  may  be  assessed  in  gross  in  the  county  where  the  prin- 
cipal office  of  the  company  is  located,  and  the  county  tax  paid  upon  it 

'This  compilation  is  derived  mainly  from  the  following  sources: 
Sayles's  Annotated  Civil  Statutes  of  the  State  of  Texas.    Sayles  and 

Sayles:  The  Gilbert  Book  Company,  St.  Louis,  Mo.,  1898. 

Supplement  to  Sayles's  Annotated  Civil  Statutes,  1897  to  1904.     W. 

W.  Ilerron:  The  Gilbert  Book  Company,  St.  Louis,  Mo.,  1903. 


shall  be  apportioned  by  the  comptroller,  in  proportion  to  the  distance 
such  road  may  run  through  any  such  county,  among  the  several  coun- 
ties through  which  the  road  passes  as  a  part  of  their  tax  assets. 

Sec.  9.  The  state  tax  on  property,  exclusive  of  the  tax  necessary  to 
pay  the  public  debt  and  of  the  taxes  provided  for  the  benefit  of  public 
free  schools,  shall  never  exceed  thirty-five  cents  on  the  one  hundred  dol- 
lars valuation;  and  no  county,  city,  or  town  shall  levy  more  than  twenty- 
five  cents  for  city  or  count}7  purposes,  and  not  to  exceed  fifteen  cents  for 
roads  and  bridges  on  the  one  hundred  dollars  valuation,  except  for  the 
pigment  of  debts  incurred  prior  to  the  adoption  of  the  amendment, 
September  twenty-five,  anno  domini  eighteen  hundred  and  eighty- 
three;  and  for  the  erection  of  public  buildings,  streets,  sewers,  water- 
works, and  other  permanent  improvements,  not  to  exceed  twenty-five 
cents  on  the  one  hundred  dollars  valuation  in  any  one  year,  and  except 
as  is  in  this  constitution  otherwise  provided;  and  the  legislature  may 
also  authorize  an  additional  annual  ad  valorem  tax  to  be  levied  and  col- 
jected  for  the  further  maintenance  of  public  roads:  Provided,  That  a 
majority  of  the  qualified  property  taxpaying  voters  of  the  county, 
voting  at  an  election  to  be  held  for  that  purpose,  shall  vote  such  tax,  not 
to  exceed  fifteen  cents  on  the  one  hundred  dollars  valuation  of  the  prop- 
erty subject  to  taxation  in  such  county.  And  the  legislature  may  pass 
local  laws  for  the  maintenance  of  public  roads  and  highways  without  the 
local  notice  required  for  special  or  local  laws. 

Sec.  10.  The  legislature  shall  have  no  power  to  release  the  inhabitants 
of,  or  property  in,  any  county,  city,  or  town  from  the  payment  of  taxes 
levied  forstate  or  county  purposes,  unless  in  case  of  great  public  calamity 
in  any  such  county,  city,  or  town,  when  such  release  may  be  made  by  a 
vote  of  two-thirds  of  each  house  of  the  legislature. 

Sec.  11.  All  property,  whether  owned  by  persons  or  corporations, 
shall  be  assessed  for  taxation  and  the  taxes  paid  in  the  county  where 
situated,  but  the  legislature  may  by  a  two-thirds  vote  authorize  the  pay- 
ment of  taxes  of  nonresidents  of  counties  to  be  made  at  the  office  of  the 
comptroller  of  public  accounts.  And  all  lands  and  other  property  not 
rendered  for  taxation  by  the  owner  thereof  shall  be  assessed  at  its  fair 
value  by  the  proper  officer. 

Sec.  12.  All  property  subject  to  taxation  in  and  owned  by  residents 
of  unorganized  counties,  shall  be  assessed  and  the  taxes  thereon  paid  in 
the  counties  to  which  such  unorganized  counties  shall  be  attached  for 
judicial  purposes;  and  lands  lying  in  and  owned  by  nonresidents  of 
unorganized  counties,  and  lands  lying  in  the  territory  not  laid  off  into 
counties,  shall  be  assessed  and  the  taxes  thereon  collected  at  the  office 
of  the  comptroller  of  the  state. 

Sec.  13.  (Provision  for  tax  sales  and  redemption.) 

Sec.  14.  (Election  of  county  assessor  for  a  two-year  term.) 

Sec.  15.  (Taxes  on  land  to  be  a  lien  thereon.) 

Sec.  16.  (Sheriff  to  be  collector  of  taxes  for  the  county,  except  in 
counties  having  over  ten  thousand  inhabitants,  when  a  collector  is  to  be 
elected.) 

Sec.  17.  The  specification  of  the  objects  and  subjects  of  taxation  shall 
not  deprive  the  legislature  of  the  power  to  require  other  subjects  or 
objects  to  be  taxed,  in  such  manner  as  may  be  consistent  with  the  prin- 
ciples of  taxation  fixed  in  this  constitution. 

Sec.  18.  The  legislature  shall  provide  for  equalizing,  as  near  as  may  be, 
the  valuation  of  all  property  subject  to  or  rendered  for  taxation  (the 
county  commissioners'  court  to  constitute  a  board  of  equalization) ;  and 
may  also  provide  for  the  classification  of  all  lands  and  titles. 

Sec.  19.  Farm  products  in  the  hands  of  the  producer  and  family  sup- 
plies for  home  and  farm  use  are  exempt  from  all  taxation  until  otherwise 
directed  by  a  two-thirds  vote  of  all  the  members  elect  to  both  houses  of 
the  legislature. 


ARTICLE    HI. 


Sec  48.  The  legislature  shall  not  have  the  right  to  levy  taxes  or  impose 
burdens  upon  the  people,  except  to  raise  revenue  sufficient  for  the  eco- 
nomical administration  of  the  government,  in  which  may  be  included  the 

following  purposes: 


TAXATION  AND  REVENUE  SYSTEMS— TEXAS. 


797 


The  payment  of  all  interest  upon  tlio  bonded  debt  of  the  state. 

The  erection  and  repairs  of  public  buildings. 

The  benefit  of  the  sinking  fund,  which  shall  not  be  more  than  two  per 
centum  of  the  public  debt:  and  for  the  payment  of  the  present  floating 
debt  of  the  state,  including  matured  bonds,  for  the  payment  of  which  the 
sinking  fund  is  inadequate. 

The  support  of  public  schools,  in  which  shall  be  included  colleges  and 
universities  established  by  the  state;  and  the  maintenance  and  support 
of  the  Agricultural  and  mechanical  colleges  of  Texas. 

The  payment  of  the  cost  of  assessing  and  collecting  the  revenue;  and 
the  payment  of  all  officers,  agents,  and  employees  of  the  state  govern- 
ment ,  and  all  incidental  expenses  connected  therewith  with  reference 
to  their  value  in  the  several  counties. 

The  support  of  the  blind  asylum,  the  deaf  and  dumb  asylum,  and  the 
insane  asylum,  the  state  cemetery,  and  the  public  pounds  of  the  state. 

The  enforcement  of  quarantine  regulations  on  the  coast  of  Texas. 

The  protection  of  the  frontier. 

ARTICLE    XI. 

Sec.  1.  Cities  and  towns  having  a  population  of  ten  thousand  inhabit- 
ants or  less  *  *  *  may  levy,  assess,  and  collect  an  annual  tax  to 
defray  the  current  expenses  of  their  local  government,  but  such  tax  shall 
never  exceed  for  any  one  year  one-fourth  of  one  per  cent,  and  shall  be 
collectible  in  current  money.  And  all  license  and  occupation  taxes  levied, 
and  all  fines,  forfeitures,  penalties,  and  other  dues  accruing  to  cities  and 
towns,  shall  be  collectible  only  in  current  money. 

Sec.  5.  Cities  having  more  than  ten  thousand  inhabitants  may  *  *  * 
levy,  assess,  and  collect  such  taxes  as  may  be  authorized  by  law,  but  no  tax 
for  any  purpose  shall  ever  be  lawful  for  any  one  year  which  shall  exceed 
two  and  one-half  per  cent  of  the  taxable  property  of  such  city;  and  no 
debt  shall  ever  be  created  by  any  city  unless  at  the  same  time  provision 
be  made  to  assess  and  collect  annually  a  sufficient  sum  to  pay  the  interest 
thereon  and  create  a  sinking  fund  of  at  least  two  per  cent  thereon. 

Sec.  6.  Counties,  cities,  and  towns  are  authorized,  in  such  mode  as  may 
now  or  may  hereafter  be  provided  by  law,  to  levy,  assess,  and  collect  the 
taxes  necessary  to  pay  the  interest  and  provide  a  sinking  fund  to  satisfy 
any  indebtedness  heretofore  legally  made  and  undertaken ;  but  all  such 
taxes  shall  I  icassessed  and  collected  separately  from  that  levied,  assessed, 
and  collected  for  current  expenses  of  municipal  government,  and  shall, 
when  levied,  specify  in  the  act  of  levying  the  purpose  therefor,  and  such 
taxes  may  be  paid  in  the  coupons,  bonds,  or  other  indebtedness  for  the 
payment  of  which  such  tax  may  have  been  levied. 

Six ■.  7.  (All  counties  and  cities  bordering  on  the  coast  of  the  Gulf  of 
Mexico  are  hereby  authorized,  upon  a  vote  of  two-thirds  of  the  tax- 
payers therein  (to  be  ascertained  as  may  be  provided  by  law),  to  levy 
and  collect  such  tax  for  construction  of  sea  walls,  breakwaters,  or  sani- 
tary purposes  as  may  be  authorized  by  law.) 

Skc.  8.  (The  property  of  counties,  cities,  and  towns  held  for  public 
purposes  is  exempt  from  taxation.) 

Skc  10.  The  legislature  may  constitute  any  city  or  town  a  separate 
and  independent  school  district.  And  when  the  citizens  of  any  city  or 
tow  n  have  a  charter,  authorizing  the  city  authorities  to  levy  and  collect 
a  tax  for  the  support  and  maintenance  of  a  public  institution  of  learning, 
such  tax  may  hereafter  be  levied  and  collected,  if,  at  an  election  held  for 
that  purpose,  two-thirds  of  the  taxpayers  of  such  city  or  town  shall  vote 
for  such  tax. 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  Town  and  city  assessors,  elected  every  two  years. 

(2)  Town  and  city  collectors,  elected  every  two  years. 

(la)  County  assessor,  elected  by  the  county  for  a  term  of  two  years. 
(2a)  County  collector,  elected  for  two  years  in  counties  with  a  popu- 
lation of  over  10,000;  in  others  the  sheriff  is  ex  officio  collector. 

(3)  County  board  of  equalization,  composed  of  the  commissioners' 
court  of  the  county. 

(4)  Comptroller  of  public  accounts. 

(5)  Board  of  equalization  for  unorganized  counties,  consisting  of  the 
governor,  attorney-general,  and  secretary  of  state. 


State  Revenues. 

a.    TAXES. 

I.    The  general  property  tax. 
1.  Base — 

a.  The  property  included  and  exempt. — All  property, 
real,  personal,  or  mixed,  except  such  as  is  expressly 
exempted,  is  subject  to  taxation. 

(1)  "  Real  property,"  for  purposes  of  taxation,  is  construed  to  include 
the  land  itself,  and  all  buildings,  structures,  and  improvements  or  other 
fixtures  thereon,  and  all  rights  and  privileges  appertaining  thereto,  and 
all  mines,  minerals,  quarries,  and  fossils  in  and  under  the  same. 

(2)  "  Personal  property  "  includes  all  goods,  chattels,  and  effects,  and 
all  moneys,  credits,  and  bonds  owned  by  citizens  of  the  state,  whether  the 
same  be  in  or  out  of  the  state;  all  ships  belonging  to  inhabitants  if  reg- 
istered in  the  state,  whether  at  home  or  abroad,  and  all  capital  invested 
therein;  all  moneys  at  interest  within  or  without  the  state  due  to  the 
owner  above  what  he  pays  interest  for,  and  all  other  debts  due  over  and 
above  a  person's  indebtedness:  all  public  stock  and  securities;  all  stock 
in  corporations  (except  national  banks)  out  of  the  state  owned  by  resi- 
dents; all  personal  estate  of  moneyed  corporations,  whether  the  owners 
thereof  are  residents  or  nonresidents;  the  income  of  any  annuity,  unless 
the  capital  of  such  annuity  lie  taxed  within  the  state;  all  shares  in  any 
national  bank ;  all  improvements  on  land  the  title  to  which  is  still  vested 
in  the  state  or  in  any  railroad  company,  or  which  have  been  exempted 
from  taxation  for  the  benefit  of  any  corporation  whose  property  is  not 
subject  to  the  same  mode  and  rule  of  taxation  as  other  property. 

(3)  Exemptions,  in  addition  to  public  property,  are:  Public  schools, 
colleges,  academies,  and  all  endowment  of  institutions  of  learning  not 
used  with  a  view  to  profit,  but  leasehold  estates  held  under  any  college 
or  university  are  not  exempt ;  cemeteries;  institutions  of  public  charity; 
fire  engines  and  horses;  market  houses;  public  libraries;  household 
furniture  of  the  value  of  $250  per  family;  and  all  annual  pensions 
granted  by  the  state. 

b.  Assessment. — In  general  there  is  but  one  assess- 
ment, made  annually  by  the  county  assessors,  which 
forms  the  basis  of  state  and  county  taxes.  All  prop- 
erty is  assessed  as  of  January  1,  at  its  true  and  full 
value,  which  is  the  price  that  could  be  obtained  for  it 
at  a  private  sale  where  the  property  is  situated.  The 
taxpayer  states  to  the  assessor  the  list  and  value  of 
his  property,  and  the  assessor  is  required  to  swear  the 
owner  that  the  inventory  contains  a  true,  full,  and 
complete  list  of  all  his  taxable  property. 

The  valuation  as  rendered  in  the  list  of  the  tax- 
payer is  to  a  certain  extent  binding  upon  the  assessor, 
and  if  he  is  not  satisfied,  he  must  refer  his  estimate 
to  the  board  of  equalization  of  the  county  and  notify 
the  taxpayer.  There  are  criminal  penalties  prescribed 
for  failure  to  list,  but  not  for  misstatements  of  value. 

Provision  is  made  for  the  assessment  of  back  taxes  for  previous  years 
in  which  property  escaped  being  rendered  or  assessed. 

Credits  are  assessed  only  for  the  balance  above  indebtedness,  but  no 
deduction  is  allowed  for  insurance  premium,  notes,  or  subscription  to 
capital  stock  or  benevolence. 

Property  owned  by  residents  and  located  in  unorganized  counties  is 
to  be  assessed  by  the  assessor  of  the  county  to  which  it  is  attached  for 
judicial  purposes.  Lands  of  nonresidents  lying  in  unorganized  counties 
are  to  be  assessed  by  the  comptroller  of  public  accounts.  The  board 
of  equalization  for  this  property  consists  of  the  governor,  the  attorney- 
general,  and  the  secretary  of  state. 

The  property  of  corporations  is  assessed  the  same  as  other  prop- 
erty, in  accordance  with  the  constitutional  requirement.  There  are  in 
addition,  however,  various  special  corporation  taxes.     But  shares  of 


798 


WEALTH,  DEBT,  AND  TAXATION. 


capital  stock  of  corporations  which  are  taxed  on  their  capital  and  prop- 
erty need  not  be  listed. 

National  banks  are  assessed  on  their  real  estate,  and  their  shares 
are  assessed  to  the  individual  holder  thereof.  All  the  property,  both 
real  and  personal,  of  a  state  bank  is  subject  to  taxation.  Bank  officers 
must  make  a  sworn  statement  of  shareholders  and  their  holdings  and 
shares  must  also  be  listed  by  the  shareholder.  Shares  are  taxed,  how- 
ever, only  for  the  difference  between  the  actual  cash  value  and  the 
proportionate  amount  per  share  at  which  its  real  estate  is  assessed. 
Deposits  are  deducted  from  assets. 

The  railroad  track  and  all  the  property  of  railroads  that  is  located 
in  organized  counties,  except  the  rolling  stock,  is  to  be  assessed  in  the 
counties  and  incorporated  towns  and  cities,  like  the  property  of  individ- 
uals. But  all  railroad  property,  including  the  roadbed,  in  unorganized 
counties,  must  be  listed  with  the  comptroller  of  public  accounts.  Roll- 
ing stock  is  assessed  by  the  assessor  of  the  county  in  which  the  com- 
pany's principal  office  is  located.  The  assessment  is  then  revised  by 
the  board  of  equalization  of  that  county  and  apportioned  by  the  comp- 
troller of  public  accounts  to  the  several  counties  in  proportion  to  the 
distance  that  the  road  runs  therein,  and  listed  on  the  assessment  roll  as 
other  personal  property. 

Collectors  of  taxes  of  counties,  cities,  and  towns  are  authorized  to 
make  up  a  supplemental  roll  of  unlisted  property  which  they  discover 
during  collection,  and  they  receive  a  commission  of  4  per  cent  on  prop- 
erty so  assessed.  Assessors  are  similarly  compensated  by  commissions, 
one-half  paid  by  the  state  and  one-half  by  the  county. 

c.  Equalization. — The  county  boards  of  equalization 
correct  errors  in  the  assessment  lists  and  equalize  the 
valuations  between  individuals.  They  can  only  act 
on  matters  of  valuation,  and  the  valuation  fixed  by 
them  is  final. 

There  is  no  state  board  of  equalization  and  no  cen- 
tral or  supervisory  power  for  the  enforcement  of 
uniform  valuation  between  the  counties. 

2.  Bate— 

The  rate  for  general  purposes  is  fixed  by  statute  at  16|  cents  on  $100 
cash  value  of  taxable  property. 

The  rate  fixed  for  schools  is  18  cents  on  $100  cash  value  of  all  tax- 
able property. 

3.  Collection — 

In  general,  taxes  for  the  state  and  county  are  col- 
lected by  the  county  tax  collector.  Taxes  are  due  the 
1st  of  October,  and  the  tax  collector  or  his  deputies  at- 
tend at  appointed  places  to  receive  payment.  Taxes 
are  delinquent  the  last  day  of  December,  and  forced  col- 
lections are  to  begin  thereafter  by  levy  and  sale  of  per- 
sonal property,  but,  if  no  such  property  is  found,  a 
list  of  delinquent  lands  and  lots  is  to  be  made  up  by 
March  31,  the  sale  of  which  is  advertised  and  enforced 
by  suit.  All  property  is  thus  liable  for  taxes  and 
may  be  levied  on  and  sold,  and  taxes  on  real  property 
are  a  lien  thereon,  which  is  superior  to  assignment, 
attachment,  inheritance,  or  devise. 

If  any  person  fails  to  pay  his  taxes  by  January  31,  a 
penalty  of  10  per  cent  on  the  entire  amount  of  such 
taxes  accrues,  to  be  paid  proportionately  to  state  and 
county. 

Taxes  on  lands  of  nonresidents  in  unorganized  counties  are  to  be 
paid  at  the  office  of  the  comptroller  of  public  accounts,  who  may  enforce 
collection. 

Special  provisions  are  made  for  the  assessment  and  collection  of  back 
taxes  on  lands  not  rendered  or  assessed  since  1870. 

Collectors  are  compensated  by  commissions  on  the  amounts  collected. 


II.  Poll  tax. 

Every  male  person  between  the  ages  of  21  and  60 
years,  resident  within  the  state  on  January  1,  is  re- 
quired to  pay  an  annual  poll  tax  of  SI. 50,  $1  being  for 
the  benefit  of  free  schools  and  50  cents  for  general  rev- 
enue purposes.  Indians  not  taxed,  and  insane,  blind, 
and  deaf  and  dumb  persons,  and  those  who]  have  lost 
one  hand  or  foot,  are  exempted. 

III.  Inheritance  tax. 

There  is  no  tax  upon  inheritance. 

IV.  Corporation  taxes. 

Corporations  are,  in  general,  taxed  under  the  prop- 
erty tax  above  described.  There  are,  in  addition,  the 
following  so-called  "occupation"  taxes: 

Railroads  and  steamboat  lines  pay  the  state  a  tax  of  1  per  cent  on 
their  gross  receipts  from  all  their  passenger  traffic  within  the  state. 
This  tax  is  collected  by  the  comptroller  for  state  purposes.  County  and 
municipal  taxes  on  such  receipts  are  not  authorized. 

Express  companies  pay  a  tax  of  1$  per  cent  of  their  gross  receipts 
within  the  state  to  the  state  treasurer.  Upon  failure  to  make  the  re- 
quired report  and  payment  there  is  a  forfeit  of  $25  per  day. 

Street  car  companies  are  required  to  pay  $2  per  mile  of  track. 

Sleeping,  palace,  or  dining  car  companies  pay  a  tax  of  2J  per  cent  of 
their  gross  receipts  from  all  passenger  travel  originating  in  and  ending 
in  this  state,  but  no  "occupation"  tax  in  addition  to  property  taxes  is 
to  be  levied  by  any  county,  city,  or  town  on  said  companies.  This  tax  is 
collected  by  the  state  treasurer.  A  fine  of  $100  may  be  imposed  for  fail- 
ure to  make  due  report  and  a  forfeit  of  $25  for  each  day  the  report  and 
payment  are  delayed.  These  companies  also  pay  to  the  state  a  tax  of 
one-fourth  of  1  per  cent  on  the  value  of  their  capital  stock  in  use  in  the 
state,  based  on  reports  to  the  comptroller,  being  that  proportion  of  the 
whole  capital  stock,  after  deducting  the  amount  invested  in  real  estate, 
manufacturing  plant,  materials,  and  properties  other  than  sleeping, 
palace,  and  dining  cars  and  equipments,  as  the  miles  in  the  state  bear 
to  the  total  mileage. 

Telegraph  companies  pay  1  cent  on  every  full-rate  message  sent  within 
the  state  and  one-half  that  for  any  message  less  than  a  full-rate  one.  The 
tax,  based  on  the  sworn  statement  of  the  chief  manager,  is  to  be  paid 
quarterly  to  the  comptroller.  Railroad  messages  for  running  trains  and 
for  company  use  and  messages  sent  on  official  business  by  officers  of  the 
United  States  are  exempt;  messages,  also,  are  exempt  from  any  county 
or  municipal  tax. 

Telephone  companies  are  to  pay  an  annual  tax  of  25  cents  on  each  tele- 
phone in  use  by  the  company  in  the  state,  but  no  other  "occupation" 
tax  is  to  be  levied  by  any  county,  city,  or  town.  This  tax  is  to  be  paid 
to  the  state  treasurer.  Any  company  failing  to  make  reports  on  pay- 
ment forfeits  to  the  state  as  a  penalty  the  sum  of  $200. 

Every  life  insurance  company  and  life  and  accident  insurance  com- 
pany is  required  to  pay  an  annual  tax  of  2  per  cent;  every  fire  insurance 
company,  one-half  of  1  per  cent;  and  each  marine,  health,  livestock, 
guarantee,  or  accident  insurance  company,  1  per  cent  on  the  gross 
premium  receipts  in  the  state  reported  to  the  commissioner  of  insurance 
on  sworn  statements.  Payment  is  made  to  the  state  treasurer.  No 
occupation  tax  is  to  be  levied  by  any  county,  town,  or  city  on  such 
companies. 

Gas  companies,  electric  light  companies,  and  waterworks  companies 
in. cities  with  a  population  of  10,000  or  more  are  required  to  pay  a  tax  of 
$35;  in  cities  with  a  population  of  less  than  10,000,  $20. 

Every  domestic  corporation  chartered  previously  to  May  15, 1897,  is 
required  to  pay  to  the  secretary  of  state  an  annual  franchise  tax  of  $10 
by  May  1. 

Every  domestic  corporation  chartered  after  May  15,  1897,  is  required 
to  pay  an  annual  franchise  tax  of  $10,  but  if  the  authorized  capital  is 
over  $50,000  and  less  than  $100,000,  $20;  from  $100,000  to  $200,000, 
$30;  over  $200,000,  $50. 


TAXATION  AND  REVENUE  SYSTEMS— TEXAS. 


799 


Foreign  corporations  authorized  to  do  business  in  the  state  pay  the 
following  franchise  taxes:  On  capital  of  $25,000  or  less,  $25 ;  from  $25,000 
to $100,000,  $100;  over$100,000,  $100;  for  each  additional  $10,000  over 
$100,000,  SI.  Failure  to  pay  forfeits  the  right  to  do  business  in  the  state 
and  $5  for  each  month's  delay. 

Exempt  from  the  franchise  tax  are  corporations  for  religious  worship, 
for  agricultural  fail's  and  the  encouragement  of  agriculture,  for  educa- 
tional purposes  and  public  charity,  and  cemeteries  not  for  private  profit. 

V.  Business  taxes  and  licenses. 

There  is  an  elaborate  system  of  taxes  on  occupa- 
tions, or  privilege  taxes,  levied  on  every  person,  firm, 
company,  or  association  of  persons  pursuing  certain 
occupations,  on  every  such  occupation  or  separate 
establishment : 

Foot  peddlers,  $5;  peddlers  with  one  horse  or  pair  of  oxen,  $7.50; 
two  horses  or  two  pairs  of  oxen,  $10;  peddlers  with  sailboats,  $10  for 
each  county  in  which  they  peddle.     Peddlers  of  clocks,  agricultural 
implements,  cooking  stoves,  wagons,  carriages,  etc.,  washing  machines 
and   churns,   $250  in   each   county.     Peddlers  of    patent  medicines, 
$100.     This  tax  does  not  apply  to  agents  of  wholesale  dealers.     Auc- 
tioneers, $10  per  year;  toll  bridges,  $7  per  year;  ship  brokers,  $10  per 
year;  commission  men,  $10  per  year;  land  agents,  $5  per  year;  attor- 
neys, $5  per  year;  traveling  physicians,  $50  per  year;  traveling  dentists, 
$5  per  year;  local  physicians,  $5  per  year;  shooting  galleries,  in  each 
county,  $30  per  annum;  knife,  cane,  and  doll  racks,  $25  per  annum; 
billiard  tables  (used  for  profit),  $20  per  annum;  pools  on  horse  races, 
$5  per  day;  nine  or  ten  pin  alleys,  $100  per  annum;  hobbyhorses  or 
flying  jennies,  $15  per  annum.     Theaters— cities  of  under  1,500  inhab- 
itants, $1  per  day;  1,500  to  3,000,  $2  per  day;  3,000  to  5,000,  $3  per 
day;  5,000  to  10,000,  $4  per  day;  10,000  or  over,  $5  per  day.     Opera 
houses  and   theaters  pay  an  annual   occupation   tax   of  $25.     Mer- 
chants— annual   purchases  amounting  to  less   than   $2,000,    $3    per 
year;  $2,000  to  $5,000,  $6  per  year;  $5,000  to  $10,000,  $12  per  year; 
$10,000  to  $15,000,  $20  per  year;  $15,000  to  $25,000,  $25  per  year; 
$25,000  to  $50,000,  $60  per  year;  $50,000  to  $150,000,  $125  per  year; 
$1.50,000  to  $250,000,  $150  per  year;  $250,000  to  $500,000,  $200  per 
year;  $.500,000  to  $750,000,  $250  per  year;  $750,000  and  over,  $300  per 
year.     Merchants  removing  from  place  to  place  and   offering  for  sale 
"bankrupt  stock,"  "fire  sale,"  etc. — first   month,   $100;    subsequent 
months,  each,  $20;  if  business  is  to  continue  six  months,  $10;  if  business  is 
to  continue  twelve  months,  in  addition  to  $100,  the  sum  required'of  regu- 
lar merchants.     Fortune  tellers,  clairvoyants,  and  mesmerists,  for  each 
county,  $10 per  annum;  brokers  and  bankers,  $50;  photograph  galleries, 
$10;  circuses — admission  $1  for  exhibition,  $250;  admission  75  cents  for 
exhibition,  $200;  admission  50  cents  for  exhibition,  $100.     Menageries, 
museums,  side  shows,  $10;  acrobatic  shows,  $10;  sleight  of  hand,  $25;  dog 
fights,  $500;  cockpits,  $50;  concerts,  $2;  livery  stables — per  stall,  $30;  per 
hack,  $30.     Wagon  yards,  $5;  insurance  adjusters  and  agents,  annual 
tax,  $50;  local  insurance  agents,  $5;  local  insurance  agents,  industrial 
life  companies,  $2;  lightning  rod  agents — to  state,  $100;  to  county,  $50; 
dealers — to   state,   $36;    to   county,   $18.     Cotton    brokers — city   of 
10,000  inhabitants  and  over,  $35;  less  than  10,000,  $18.     Pawnbrokers, 
$150;  cotton,  wool,  or  hide  buyers,  $10;  sewing  machine  agencies — to 
state,  $15;  to  county,  $7.     Loan  agents — to  state,  $150;  to  county,  $15. 
Credit  agencies  (no  county,  city,  or  town  tax),  $300;  skating  rinks,  $25; 
baseball  parks,  in  towns  of  5,000  inhabitants  or  more,  $25;  steam  laun- 
dries, $10;  ice  dealers — city  of  20,000  inhabitants  or  more,  $50;  10,000 
to  20,000,  $30;  5,000  to  10,000,  $20;  less  than  5,000,  $10.     Race  tracks— 
1    mile,   $100;    one-half    mile,    $50.     Grain  elevators — capacity  over 
100,000  bushels,  $50;  capacity  50,000  to  100,000  bushels,  $25.     Phono- 
graphs, etc.,  where  fee  is  charged,  $25;  kinetoscopes,  cinematographs, 
$25;  panoramas— state,  $10;  county,  $2.     Dealers  in  cottonseed  oil,  $25; 
exhibitions  for  sale  of  medicines — to  state,  $50;  per  exhibition,  to  the 


county,  $2.50.  Commission  merchants — city  of  10,000  inhabitants  or 
over,  $50;  less  than  10,000,  $25.     Cigarette  dealers,  $10  per  annum. 

Liquors — retail  dealers,  selling  in  quantities  of  1  gallon  or  less,  $300; 
wholesale  dealers,  selling  in  quantities  of  1  gallon  or  more,  $300;  dealers 
selling  malt  liquors  exclusively,  $.50;  dealers  selling  on  prescription  in 
local  option  districts,  $200. 

These  taxes  are  to  be  paid  not  less  than  three  months  before  the  occu- 
pation begins;  all  arrearages  of  taxes  are  a  lien  upon  all  the  stock  and 
fixtures  used  in  the  business  which  may  be  foreclosed  by  sale. 

B.    FEES. 

Secretary  of  state. — Charters  and  amendments  of  railroads,  tele- 
graph lines,  and  street  railways,  recording  over  $100,000  capital,  $100; 
for  each  additional  $100,000  of  capital,  $25;  charters  and  amendments 
of  corporations  for  religious,  benevolent,  charitable,  educational,  liter- 
ary, fine  arts,  innocent  sports,  and  public  cemetery  purposes,  $10;  cor- 
porations for  other  purposes,  $25;  for  each  additional  $10,000  of  capital 
after  the  first,  $5;  commissions,  official  certificates,  remission  of  fines,  $1 ; 
charters  of  channel  and  dock  corporations,  $100;  foreign  corporations, 
capital  stock  less  than  $100,000,  $2.5;  $100,000  to  $,500,000,  $50:  $.500,000 
to  $1,000,000,  $200. 

Commissioner  of  insurance. — Filing  charter  of  insurance  company, 
$25;  annual  statement  or  certificate,  $20;  certificate  of  authority,  $1; 
valuing  policies  of  life  insurance  companies,  for  each  $1,000,000  of 
insurance,  $10. 

Different  boards.— Dentists— license,  $2;  certificate,  $10;  pharma- 
cists, examination  and  registration,  $5;  physicians,  examination,  $15. 

County  Revenues. 

A.  TAXES. 

I.  The  general  property  tax. 

1.  Base — 

The  property  included  and  the  methods  of  assess- 
ment and  of  equalization  are  the  same  for  county  as 
for  state  taxes. 

2.  Rate— 

The  commissioners'  courts  of  the  several  counties  have  power  to  levy 
for  county  revenue  purposes  a  tax  of  one-fourth  of  1  per  cent  ad  valorem; 
for  roads  and  bridges,  15  cents  on  each  $100;  for  the  payment  of  debts, 
erection  of  public  buildings,  and  other  permanent  improvements,  25 
cents  on  each  $100;  improvements  of  public  roads,  15  cents;  and  for 
free  public  schools  and  school  buildings  by  vote  of  the  taxpayers,  20 
cents  on  each  $100. 

3.  Collection — 
Same  as  for  state  taxes. 

II.  Poll  tax. 

No  county  is  to  levy  more  than  25  cents  as  a  poll  tax 
for  county  purposes.     Persons  subject  to  the  tax  are 
the  same  as  for  state  poll  taxes. 
Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There  are  no  inheritance  or  special  corporation  taxes 
for  the  county. 
V.  Business  taxes  and  licenses. 

Commissioners'  courts  of  the  several  counties  have, 
in  general,  the  power  to  levy  one-half  the  occupation 
tax  levied  by  the  state  upon  all  occupations  not  spe- 
cially exempted  nor  provided  for  otherwise,  and  includ- 
ing the  sale  of  liquors. 


800 


WEALTH,  DEBT,  AND  TAXATION. 


Municipal  Revenues. 


a.  TAXES. 


I.  The  general  property  tax. 

1.  Base — 

The  property,  real  and  personal,  within  the  munici- 
pality, subject  to  taxation  by  the  laws  of  the  state, 
may  be  taxed  by  cities  and  towns.  The  city  council 
has  power  to  provide  by  ordinance  for  the  assessment 
thereof.     There  are  municipal  boards  of  equalization. 

2.  Rate— 

The  city  council  or  board  of  aldermen  of  any  city  or 
town  has  power  to  levy  a  tax,  not  exceeding  one- 
'  fourth  of  1  per  cent  on  the  assessed  value ;  also  25  cents 
on  each  $100  for  improvements  and  buildings. 

3.  Collection — 

Collection  is  to  be  provided  for  by  ordinance. 
There  are  statutory  provisions  also  analogous  to  those 
for  collection  of  state  and  county  taxes. 

II.  Poll  tax. 

Cities  may  levy  an  annual  poll  tax  not  to  exceed  $1 
on  every  male  inhabitant  over  the  age  of  21  years 
(idiots  and  lunatics  excepted)  who  is  a  resident  thereof. 

All  males  not  exempt  are  required  to  work  on  the 
roads  in  rural  districts  or,  in  lieu  thereof,  to  pay  $3 
per  annum. 
Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There  are  no  municipal  inheritance  or  special  cor- 
poration taxes. 


V.  Business  taxes  and  licenses. 

The  mayor  and  board  of  aldermen  of  any  incorpor- 
ated town  or  city  may  levy  one-half  of  the  occupation 
tax  levied  by  the  state  on  all  occupations  not  spe- 
cially exempted  nor  otherwise  provided  for,  and  they 
have  the  same  power  to  levy  taxes  on  occupations  and 
the  sale  of  liquors  as  the  county  commissioners'  court. 

School  Revenues. 

The  constitution  provides  that  one-fourth  of  the 
revenue  derived  from  the  state  occupation  taxes  and 
a  poll  tax  of  $1  are  to  be  set  apart  annually  for  the 
support  of  public  free  schools;  and  in  addition  there 
is  to  be  levied  an  annual  ad  valorem  state  tax  of 'not 
to  exceed  20  cents  on  $100  sufficient,  with  the  avail- 
able school  fund  arising  from  other  sources,  to  sup- 
port free  public  schools  for  not  less  than  six  months 
in  each  year. 

Counties  are  to  be  subdivided  into  school  districts, 
and  the  commissioners'  courts  of  the  several  counties 
may  levy  a  special  tax  of  not  to  exceed  20  cents  on  $100, 
provided  it  is  authorized  by  vote  of  the  taxpayers  of 
the  district. 

The  constitution  establishes  a  permanent  school 
fund  from  the  proceeds  of  the  sale  of  public  land  and 
from  other  sources,  and  the  interest  derived  there- 
from and  the  school  taxes  make  up  the  available 
school  fund,  which  is  apportioned  to  the  several  coun- 
ties of  the  state  according  to  the  school  population  of 
each. 


UTAH. 


Utah  depends  primarily  upon  the  general  property 
tax  for  state,  county,  and  municipal  revenues. 
There  are,  however,  an  inheritance  tax,  both  direct  and 
collateral,  and  a  system  of  fees  for  incorporation  and 
on  insurance  companies,  but  no  special  corporation 
taxes  except  on  insurance  companies.  Poll  taxes  and 
licenses  are  used  as  a  source  of  county  and  municipal 
revenues. 

CONSTITUTIONAL    PROVISIONS. 


ARTICLE   XIII. 

Sec.  1.  The  fiscal  year  shall  begin  on  the  1st  day  of  January,  unless 
changed  by  the  legislature. 

Sec.  2.  All  property  in  the  state  not  exempt  under  the  laws  of  the 
United  States  or  under  this  constitution  shall  be  taxed  in  proportion  to 
its  value,  to  be  ascertained  as  provided  by  law.  The  word  "property,"  as 
used  in  this  article,  is  hereby  declared  to  include  moneys,  credits,  bonds, 
stocks, franchises,  and  all  matters  and  things  (real,  personal,  and  mixed) 
capable  of  private  ownership;  but  this  shall  not  be  so  construed  as  to 

1  This  compilation  is  derived  mainly  from  the  following  sources: 

The  Revised  Statutes  of  the  State  of  Utah,  in  force  January  1, 1898. 
Published  by  authority  of  the  legislature,  by  Richard  W.  Young,  Grant 
Smith,  and  William  A.  Lee,  Code  Commissioners:  State  Journal  Com- 
pany, Lincoln,  Nebr.,  printers,  1898. 

Laws  of  Utah,  1899:  Tribune  Job  Printing  Company,  Salt  Lake  City, 
Utah. 

Laws  of  Utah,  1901 :  The  Deseret  News,  Salt  Lake  City,  Utah. 


authorize  the  taxation  of  the  stocks  of  any  company  or  corporation, 
when  the  property  of  such  company  or  corporation  represented  by  such 
stock  has  been  taxed.  The  legislature  shall  'provide  by  law  for  an 
annual  tax  sufficient,  with  other  sources  of  revenue,  to  defray  the  esti- 
mated ordinary  expenses  of  the  state  for  each  fiscal  year.  For  the  pur- 
pose of  paying  the  state  debt,  if  any  there  be,  the  legislature  shall  pro- 
vide for  levying  a  tax  annually,  sufficient  to  pay  the  annual  interest  and 
principal  of  such  debt  within  twenty  years  from  the  final  passage  of  the 
law  creating  the  debt. 

Sec.  3.  The  legislature  shall  provide  by  law  a  uniform  and  equal  rate 
of  assessment  and  taxation  on  all  property  in  the  state,  according  to  its 
value  in  money,  and  shall  prescribe  by  general  law  such  regulations  as 
shall  secure  a  just  valuation  for  taxation  of  all  property:  so  that  every 
person  and  corporation  shall  pay  a  tax  in  proportion  to  the  value  of  his, 
her,  or  its  property :  Provided,  That  a  deduction  of  debts  from  credits 
may  be  authorized:  Provided  further,  That  the  property  of  the  United 
States,  of  the  state,  counties,  cities,  towns,  school  districts,  municipal 
corporations  and  public  libraries,  lots  with  the  buildings  thereon  used 
exclusively  for  either  religious  warship  or  charitable  purposes,  and 
places  of  burial  not  held  or  used  for  private  or  corporate  benefit,  shall  be 
exempt  from  taxation.  Ditches,  canals,  and  flumes  owned  and  used 
by  individuals  or  corporations  for  irrigating  lands  owned  by  such  indi- 
viduals or  corporations,  or  the  individual  members  thereof,  shall  not  be 
separately  taxed  so  long  as  they  shall  be  owned  and  used  exclusively  for 
such  purpose. 

Sec.  4.  All  mines  and  mining  claims,  both  placer  and  rock  in  place, 
containing  or  bearing  gold,  silver,  copper,  lead,  coal,  or  other  valuable 
mineral  deposits,  after  purchase  thereof  from  the  United  States,  shall 
be  taxed  at  the  price  paid  the  United  States  therefor,  unless  the  surface 


TAXATION  AND  REVENUE  SYSTEMS— UTAH. 


801 


ground  or  some  part  thereof  of  such  mine  or  claim  is  used  for  other  than 
mining  purposes,  and  has  a  separate  and  independent  value  for  such 
other  purposes,  in  which  case  said  surface  ground,  or  any  part  thereof, 
BO  used  for  other  than  mining  purposes,  shall  be  taxed  at  its  value  for 
such  other  purposes  as  provided  by  law,  and  all  the  machinery  used  in 
mining,  and  all  property  and  surface  improvements  upon,  or  appurte- 
nant to,  mines  and  mining  claims,  which  have  a  value  separate  and  inde- 
pendent of  such  mines  or  mining  claims,  and  the  net  annual  proceeds  of 
all  mines  and  mining  claims,  shall  be  taxed  as  provided  by  law. 

Sec.  5.  The  legislature  shall  not  impose  taxes  for  the  purpose  of  any 
county,  city,  town,  or  other  municipal  corporation,  but  may  by  law  vest 
in  the  corporate  authorities  thereof,  respectively,  the  power  to  assess 
and  collect  taxes  for  all  purposes  of  such  corporation. 

Sec.  7.  The  rate  of  taxation  on  property,  for  state  purposes,  shall  never 
exceed  eight  mills  on  each  dollar  of  valuation;  and  whenever  the  taxa- 
ble property  within  the  state  shall  amount  to  two  hundred  million  dollars, 
the  rate  shall  not  exceed  five  mills  on  each  dollar  of  valuation;  and 
whenever  the  taxable  property  in  the  state  shall  amount  to  three  hun- 
dred million  dollars,  the  rate  shall  never  thereafter  exceed  four  mills  on 
each  dollar  of  valuation,  unless  a  proposition  to  increase  such  rate, 
specifying  the  rate  proposed  and  the  time  during  which  the  same  shall 
be  levied,  be  first  submitted  to  a  vote  of  such  of  the  qualified  electors 
of  the  state  as,  in  the  year  next  preceding  such  election,  shall  have  paid 
a  property  tax  assessed  to  them  within  the  state,  and  the  majority  of 
those  voting  thereon  shall  vote  in  favor  thereof  in  such  manner  as  may 
be  provided  by  law. 

Sec.  10.  All  corporations  or  persons  in  this  state,  or  doing  business 
therein,  shall  be  subject  to  taxation  for  state,  county,  school,  municipal, 
or  other  purposes  on  the  real  and  personal  property  owned  or  used  by 
them  within  the  territorial  limits  of  the  authority  levying  the  tax. 

Sec.  11.  Until  otherwise  provided  by  law,  there  shall  be  a  state  board 
ol  equalization,  consisting  of  the  governor,  state  auditor,  state  treasurer, 
secretary  of  state,  and  attorney-general;  also,  in  each  county  of  this 
state  a  county  board  of  equalization,  consisting  of  the  board  of  county 
commissioners  of  said  county.  The  duty  of  the  state  board  of  equali- 
zation shall  be  to  adjust  and  equalize  the  valuation  of  the  real  and  per- 
sonal property  among  the  several  counties  of  the  state.  The  duty  of 
the  county  board  of  equalization  shall  be  to  adjust  and  equalize  the 
valuation  of  the  real  and  personal  property  within  their  respective 
counties.  Each' board  shall  also  perform  such  other  du*:es  as  may  be 
prescribed  by  law. 

Sec.  12.  Nothing  in  this  constitution  shall  be  construed  to  prevent 
the  legislature  from  providing  a  stamp  tax,  or  a  tax  based  on  income, 
occupation,  licenses,  franchises,  or  mortgages. 

ARTICLE    III. 

Ordinance  *  *  *  the  lands  belonging  to  citizens  of  the  United 
States  residing  without  this  state  shall  never  be  taxed  at  a  higher  rate 
than  the  lands  belonging  to  residents  of  this  state;  nor  shall  taxes  be 
imposed  by  this  state  on  lands  or  property  herein  belonging  to  or 
which  may  hereafter  be  purchased  by  the  United  States  or  reserved  for 
its  use;  but  nothing  in  this  ordinance  shall  preclude  the  state  from 
taxing,  as  other  lands  are  taxed,  any  lands  owned  or  held  by  any  Indian 
who  has  severed  his  tribal  relations,  and  has  obtained  title  thereto, 
unless  exempted  by  act  of  Congress  granting  the  same. 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  Town  board  of  equalization,  composed  of  the  board  of  trustees. 

(2)  City  council,  which  acts  as  board  of  equalization  in  cities  of  the 
third  class. 

(3)  County  assessors,  elected  for  a  term  of  two  jean. 

(4)  County  treasurer,  elected  for  two  years,  who  collects  taxes. 

(5)  County  board  of  equalization,  composed  of  the  board  of  county 
commissioners. 

(6)  State  board  of  equalization  of  four  members,  appointed  by  the 
governor  for  a  term  of  four  years. 

932—07 51 


State  Revenues. 


a.   TAXES. 


I.  The  general  property  tax. 
1.  Base — 
a.  The  property  included  and  exempt. — All  property 
in  the  state,  not  exempt  by  law,  is  to  be  taxed  in  pro- 
portion to  its  value.  Property  includes  moneys, 
credits,  bonds,  stocks,  franchises,  and  all  other  mat- 
ters, real,  personal,  and  mixed,  capable  of  private 
ownership;  but  the  stocks  of  any  company  or  corpo- 
ration, which  is  taxed  on  the  property  represented  by 
the  stock,  are  not  to  be  taxed. 

(1)  "Real  estate"  includes  the  possession,  claim  to,  ownership  of, 
or  right  to  land;  all  mines,  minerals,  and  quarries  in  and  under  land:  all 
timber  belonging  to  individuals  or  corporations  and  growing  on  the 
lands  of  the  state  or  the  United  States,  and  all  rights  and  privileges 
appertaining  thereto;  improvements,  buildings,  and  fixtures  on  land, 
whether  title  has  been  acquired  or  not. 

(2)  "Personal  property''  includes  everything  that  is  the  subject  of 
ownership  not  included  within  the  meaning  of  the  terms  "real  estate" 
and  "improvements." 

(3)  Exemptions,  in  addition  to  public  property,  are:  Public  libraries; 
churches;  cemeteries  not  held  for  private  or  corporate  benefit;  property 
used  for  charitable  purposes;  and  ditches,  canals,  and  flumes  used  for 
irrigating  lands  of  the  owners. 

h.  Assessment. — There  is  in  general  one  assessment 
list  for  state,  county,  and  municipal  purposes.  The 
assessment  is  made  annually  by  the  county  assessor  on 
the  basis  of  sworn  statements,  which  he  may  require 
the  taxpayers  to  furnish,  in  regard  to  the  amount  and 
value  of  their  property  on  the  first  Monday  of  Febru- 
ary. Any  person,  after  demand  by  the  assessor,  refus- 
ing to  make  the  sworn  statement  as  to  his  property  or 
to  appear  and  be  examined,  forfeits  to  the  assessor  $100 
for  each  refusal  and  loses  his  standing  before  the  county 
commissioners  to  secure  a  reduction  of  his  assessment. 
All  taxable  property  is  to  be  assessed  at  its  full 
cash  value,  the  amount  at  which  the  property  would  be 
taken  in  payment  of  a  just  debt  due  from  a  solvent 
debtor. 

Land  and  improvements  thereon  are  to  be  assessed  separately. 

Bank  stock,  state  and  national,  is  to  be  assessed  where  the  bank  is 
located,  on  the  basis  of  a  verified  statement  by  the  cashier.  Real  estate 
is  assessed  to  the  bank  and  the  proportionate  value  is  deducted  in  the 
assessment  of  the  stock.  The  bank  is  to  pay  the  tax  and  has  a  lien  on 
the  shares  therefor.  The  shares  of  national  banks  not  in  Utah  are  not 
subject  to  taxation. 

Private  bankers,  brokers,  and  foreign  banks  are  assessed  on  the 
average  balance  of  credits  over  liabilities  for  the  ninety  days  preceding 
the  verified  statement  of  the  condition  of  the  business  required. 

Every  person  is  entitled  to  deduct  from  the  gross  amount  of  credits 
the  amount  of  all  bona  fide  debts  owing  by  him,  except  insurance 
premium  notes,  unpaid  subscriptions  to  any  institution  or  society,  or 
to  the  capital  stock  of  any  corporation,  and  surety-ship  obligations. 

The  capital  stock  and  franchises  of  corporations  are  to  be  listed  and 
taxed  where  the  principal  office  is  located.  But  the  stocks  of  any  com- 
pany or  corporation  which  is  taxed  on  the  property  represented  by  the 
stock  are  not  to  be  taxed. 

All  property  and  franchises,  except  those  derived  from  the  United 
States,  owned  by  railroad,  street  railway,  car,  depot,  telegraph,  and 
telephone  companies  are  to  be  assessed  by  the  state  board  of  equaliza- 
tion.    The  assessment  of  telegraph  and  telephone  lines,  right  of  way, 


802 


WEALTH,  DEBT,  AND  TAXATION. 


track,  and  other  real  property  is  apportioned  in  proportion  to  the  value 
thereof  in  each  county;  that  of  the  rolling  stock  and  franchises,  accord- 
ing to  mileage  by  the  unit  rule.  The  board  of  county  commissioners 
apportions  the  assessment  to  the  several  cities,  towns,  schools,  roads, 
or  other  taxing  districts. 

Mines  are  assessed  on  their  gross  yield  of  mineral  during  the  year  on 
the  basis  of  verified  statements  by  the  producer,  of  which  the  record  is 
kept  in  a  special  assessment  book  for  mines.  The  assessment  is  ap- 
portioned to  the  county  in  which  the  mines  are  situated. 

Improvements,  buildings,  erections,  structures,  and  machinery  or 
mines  or  mining  claims  which  have  a  value  independent  of  such  mine, 
or  supplies  used  in  mills,  reduction  works,  or  mines  are  to  be  assessed 
as  other  property. 

All  stock  brought  into  the  state  by  nonresidents  to  be  grazed  for  more 
than  twenty  days  and  all  stock  driven  from  one  county  to  another  for 
the  purpose  of  being  grazed  is  transient  stock.  The  tax  on  transient 
stock  owned  by  residents  is  to  be  paid  in  the  county  where  owned  and 
apportioned  among  the  counties  where  the  stock  has  ranged.  When 
the  stock  is  brought  into  the  state,  nonresidents  pay  the  regular  annual 
tax  as  on  property  permanently  located  in  the  state. 

c.  Equalization. — The  county  board  of  equalization 
equalizes  between  individuals  and  may  abate  the  taxes 
of  any  insane,  idiotic,  infirm,  or  indigent  person  to  an 
amount  not  exceeding  $10,  may  enter  omitted  prop- 
erty, and  correct  false  or  incomplete  assessments. 

The  state  board  of  equalization  equalizes  the  valua- 
tion between  the  several  counties,  and  may  add  or  de- 
duct from  the  valuation  of  all  such  property  or  of  cer- 
tain classes  of  such  property  in  order  to  raise  or  reduce 
it  to  its  full  value  in  money. 

2.  Rate— 

The  board  of  equalization  determines  the  rate  of 
state  tax,  which,  after  allowing  1  0  per  cent  of  the  pro- 
ceeds for  delinquencies  and  cost  of  collection,  must  be 
sufficient  to  raise  the  revenue  required. 

This  rate,  however,  as  limited  by  the  constitution, 
is  never  to  exceed  8  mills  on  each  dollar  of  valuation; 
whenever  the  taxable  property  in  the  state  amounts 
to  $200,000,000,  the  rate  is  not  to  exceed  5  mills,  and 
whenever  it  amounts  to  $300,000,000,  is  not  to  exceed 
4  mills,  unless  by  vote  of  the  electors  of  the  state  who 
pay  a  property  tax. 

The  rate  levied  for  general  state  purposes  in  the  fiscal  years  of  1901 
and  1902  was  5  mills  on  the  dollar,  or  such  portion  as  the  board  of 
equalization  should  find  necessary  to  raise  $550,000  for  each  year. 

The  district  school  tax  of  3  mills  on  the  dollar  is  a  state  tax  on  all  the 
taxable  property  in  the  state. 

3.  Collection — 

Collection  is  made  by  the  county  treasurer,  and  notice 
of  the  amount  of  tax  and  of  the  time  and  place  where 
payable  is  to  be  given  by  mail  to  the  taxpayers. 
Taxes  on  personal  property  are  a  lien  on  the  real  prop- 
erty of  the  owner;  those  on  real  property,  on  the  prop- 
erty assessed;  and  those  on  improvements,  on  the  land 
and  improvements,  though  assessed  to  others  than  the 
owners  of  the  real  estate ;  and  the  several  liens  attach 
as  of  the  first  Monday  in  February.  Taxes  fall  due  on 
the  first  Monday  of  September  and  become  delinquent 
on  the  15th  of  November.     Delinquent  taxes  on  per- 


sonal property,  except  when  real  estate  is  liable  there- 
for, may  be  collected  by  seizure  and  sale.  The  delin- 
quent tax  list  is  published  and  the  real  property  is 
sold  on  the  third  Monday  in  December. 

Taxes  on  railroads  and  street  railway,  depot,  telegraph,  and  tele- 
phone companies  assessed  by  the  state  board  of  equalization  are  col- 
lected in  the  same  manner  as  other  taxes;  but  for  taxes  on  car  com- 
panies the  secretary  of  the  state  board  of  equalization  is  made  collector 
and  remits  to  the  state  treasurer  and  to  the  county,  city,  town,  school, 
and  other  taxing  districts  the  sums  which  he  collects.  He  is  authorized 
to  enforce  collection  after  the  manner  of  the  county  treasurer. 

II.  Poll  tax. 

There  is  no  state  poll  tax.     (See  County  revenues.) 

III.  Inheritance  tax, 

All  property  in  excess  of  $10,000  within  the  juris- 
diction of  the  state,  whether  belonging  to  inhabitants 
or  not,  passing  by  will,  descent,  or  transfer,  taking 
effect  after  death,  is  subject  to  a  tax  of  5  per  cent  of  its 
value. 

The  tax  is  a  lien  on  the  estate  and  is  to  be  paid  to  the 
state  treasurer  by  the  executor  within  fifteen  months. 

IV.  Corporation  taxes. 

In  general,  corporations  are  taxed  under  the  general 
property  tax. 

Every  insurance  company  doing  business  in  the  state  is  required  to 
pa}'  annually  a  tax  of  1J  per  cent  on  the  gross  premium  receipts  col- 
lected from  policy  holders  in  the  state,  less  the  gross  amount  of  the 
property  tax  paid  for  general  state  purposes. 

There  is  a  penalty  of  $100  a  day  for  delay  in  making  the  required 
statement  or.  in  making  payment. 

V.  Business  taxes  and  licenses. 

These  taxes  are  left  to  the  counties  and  munici- 
palities. 

B.    FEES. 

Secretary  of  state. — Filing  original  or  certified  copies  of  articles  of  in- 
corporation, per  $1,000  of  capital  stock,  25  cents  (these  fees  apply  to 
foreign  and  domestic  corporations;  same  fees  charged  for  amendments 
increasing  the  capital  stock);  filing  other  amendments  to  articles,  $5; 
certificate  of  incorporation,  $5;  recording  official  bonds,  $2;  commissions 
by  governor,  $5;  filing  trade-mark,  $3;  filing  notice  appointment  of  agent, 
$5;  filing  notice,  removal  of  place  of  business,  $5;  annual  statement,  insur- 
ance company ,  $25;  annual  tax,  insurance  company ,  $2;  renewal  certificate 
authority,  insurance  agent,  $2;  renewal  certificate  authority,  insurance 
company,  $5;  filing  list  of  authorized  attorneys  for  each  insurance  com- 
pany,$1  :  preparing  annual  abstract  of  each  insurance  company  and  certi- 
fying the  same,  $5;  annual  statement,  building  and  loan  association,  $5; 
annual  statement,  certified  copy,  $2;  certificate  of  authority,  $3;  filing 
and  certifying  private  banker's  preliminary  statement,  $25;  quarterly 
statement  of  each  bank,  $5;  filing  acceptance  of  provisions  of  constitu- 
tion by  corporations  and  issuing  certificate,  $3;  warrant  of  arrest  or 
requisition  of  other  states,  $5:  filing  papers*  generally,  $5:  copies  of 
papers,  per  folio,  15  cents;  recording,  per  folio,  20  cents. 

The  state  auditor,  the  clerk  of  the  supreme  court,  and  the  board  of 
land  commissioners  charge  certain  fees. 

Bank  examiners  for  examination  of  banks,  loan,  trust,  and  guaranty 
associations  or  insurance  companies  receive  $15  per  day. 

Dentists,  examination,  $5.  Pharmacists — certificate,  $3;  examina- 
tion, $5:  renewal  of  registration,  $2.  Physicians  and  surgeons,  ex- 
amination, $15. 


TAXATION  AND  REVENUE  SYSTEMS— UTAH. 


803 


County  Revenues. 

a.  TAXES. 

I.  The  general  property  tax. 

1.  Base — 

The  property  included  and. the  assessment  and  equal- 
ization thereof  are  the  same  for  county  as  for  state 
taxes. 

2.  Rate— 

The  board  of  county  commissioners  was  authorized  to  levy  for  the 
fiscal  years  of  1901  and  1902  an  ad  valorem  tax  not  to  exceed  5  mills  on 
the  dollar  for  general  purposes  and  one  not  to  exceed  4  mills  on  the 
dollar  for  county  school  purposes. 

3.  Collection — 

Collection  of  county  as  for  state  taxes  is  made  by 
the  county  treasurer. 

II.  Poll  tax. 

There  is  an  annual  road  poll  tax  upon  every  man 
over  21  and  under  50  years  of  age  who  is  not  physic- 
ally incapacitated  for  work.  Honorably  discharged 
soldiers,  sailors,  or  marines  and  firemen  and  militia- 
men are  exempt.  The  tax  may  be  paid  by  two  days' 
work  of  eight  hours  each,  or,  in  lieu  thereof,  by  a  money 
payment  of  $3. 

All  money  collected  in  lieu  of  labor,  except  such  as 
is  collected  by  incorporated  cities  and  towns,  is  paid 
into  the  county  treasury  to  be  expended  on  the  public 
highways.  Collection  is  made  by  the  road  supervisor 
of  the  road  district. 
Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There    are    no    county  inheritance  or    corporation 
taxes. 
V.  Business  taxes  and  licenses. 

The  board  of  county  commissioners  has  power  to 
license,  for  purposes  of  regulation  and  revenue,  all  and 
every  kind  of  business  transacted  in  the  county  and  all 
shows,  exhibitions,  and  lawful  games  carried  on  therein 
outside  the  limits  of  incorporated  cities;  to  fix  the  rate 
of  said  license  tax;  and  to  provide  for  the  collection 
thereof. 

The  board  also  has  power  to  grant  licenses  and  franchises  for  toll 
roads  when  the  expense  of  such  roads  is  too  great  for  the  county. 

liquor  licenses,  outside  of  cities  and  towns,  are  granted  by  the  boards 
of  county  commissioners  at  a  rate  of  not  less  than  $400  per  year. 

Municipal  Revenues. 

a.  TAXES. 

I.    The  general  property  tax. 
1.  Base — 
The    property    included    and    the    assessment    and 
equalization  thereof  are  the  same  for  city  and  town 


taxes  as  for  state  and  county.  The  city  councils  in 
cities  of  the  third  class  and  the  boards  of  trustees  in 
towns  act  as  boards  of  equalization  so  far  as  concerns 
the  general  municipal  taxes. 

2.  Rate— 

The  city  council  of  each  city  or  the  board  of  trustees 
of  each  town  determines  the  rate  of  the  general  city  or 
town  tax.     In  towns  the  limit  is  one-half  of  1  per  cent. 

3.  Collection — 

The  collection,  as  for  state  and  county  taxes,  is  by 
the  county  treasurer,  except  in  cities  of  the  third  class, 
where  it  is  by  the  city  treasurer,  and  in  towns,  where 
it  is  by  the  clerk. 
II.  Poll  tax. 

In  incorporated  cities  and  towns  poll  taxes  are  col- 
lected and  expended  for  highway  purposes,  as  pre- 
scribed by  ordinance,  similarly  to  the  county  poll  tax. 

Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There  are  no  municipal  inheritance  or  corporation 
taxes. 

V.  Business  taxes  and  licenses. 

In  cities  the  city  council  determines  the  amount,  terms,  and  manner 
of  issuing  license  for  hawking,  peddling,  pawnbrokerage,  employment 
agencies,  the  keeping  of  ordinaries,  theatrical  and  other  exhibitions, 
shows  and  amusements,  and  the  business  conducted  by  ticket  scalpers, 
distillers,  brewers,  money  changers,  brokers,  banks,  express  com- 
panies, laundries,  hackmen,  storekeepers,  and  the  various  lines  of 
business. 

The  city  council  has  power  to  license  the  liquor  traffic  for  the  munici- 
pal year  and  to  determine  the  amount  to  be  paid  for  such  license.  No 
further  license  is  to  be  required  by  the  county.  The  rate  of  such 
license  tax  is  to  be  not  less  than  $400  per  year. 

In  towns  the  board  of  trustees  has  similar  powers  in  respect  to  liquor 
and  other  licenses. 

School  Revenues. 

The  constitution  establishes  a  school  fund,  which  is 
apportioned  to  counties,  from  the  proceeds  of  the  sale 
of  public  lands  granted  by  the  United  States  and  from 
other  sources. 

The  county  commissioners,  at  the  time  of  the  annual 
levy  of  other  county  taxes,  levy  a  tax  not  to  exceed  4 
mills  on  a  valuation  of  $1. 

The  county  superintendent  apportions  the  state  and 
county  school  funds  to  the  school  districts  of  the 
county  according  to  the  number  of  school  children 
over  6  and  under  18  years  of  age. 

Special  school  taxes  may  be  voted  in  the  districts 
to  purchase  school  sites,  to  erect  buildings,  or  to  pay 
current  expenses,  in  any  sum  not  to  exceed  2  per  cent 
of  all  taxable  property,  on  the  basis  of  the  county 
assessment.  They  are  collected  as  state  and  county 
taxes. 


804 


WEALTH,  DEtfT,  AND  TAXATION. 


VERMONT.1 


Vermont's  revenue  system  is  that  of  a  combined  gen- 
eral property  and  poll  tax,  supplemented  for  state  pur- 
poses by  a  series  of  special  corporation  taxes  and  an 
inheritance  tax.  The  general  property  tax  is  in  the 
main  administered  by  the  towns,  and  each  town  is  held 
responsible  in  its  corporate  capacity  for  its  share  of 
state  and  county  taxes. 

The  peculiar  feature  of  the  Vermont  system  is  the 
"grand  list."  This  was  originally  a  list  of  polls,  prop- 
erty, occupations,  and  incomes,  each  item  being  "set  in 
the  list"  at  an  arbitrary  valuation,  the  endeavor  being 
made  by  these  arbitrary  values  to  represent  the  rela- 
tive "faculty"  or  ability  to  pay  taxes  arising  from  each 
item.  Eventually  the  endeavor  was  made  to  bring 
these  arbitrary  values  into  some  relation  to  actual  val- 
ues. In  so  doing  incomes  and  the  valuations  of  differ- 
ent occupations  were  dropped  and  polls  and  property 
retained.  Polls  are  given  an  arbitrary  value  of  $2 
each,  and  only  1  per  cent  of  the  appraised  value  of 
property  is  put  in  the  list.  The  rate  is  expressed  as  so 
many  cents  on  each  dollar  in  the  "grand  list,"  or  as  so 
many  dollars  and  cents  and  per  cent,  the  latter  being 
an  inaccurate  expression  having  reference  to  the  fact 
that  only  1  per  cent  of  property  is  set  in  the  list.  A  rate 
of  $1.50  on  each  $1  in  the  "grand  list"  is  therefore  the 
same  as  a  poll  tax  of  $3  and  a  tax  on  property  at  the 
rate  of  $1.50  on  each  $100  of  the  true  value  of  the  prop- 
erty, or  15  mills  on  the  dollar. 

CONSTITUTIONAL    PROVISIONS. 
CHAPTER   I,  ARTICLE   IX. 

That  every  member  of  society  hath  a  right  to  be  protected  in  the  en- 
joyment of  life,  liberty,  and  property,  and  therefore  is  bound  to  contrib- 
ute his  proportion  towards  the  expense  of  that  protection  and  yield  his 
personal  service,  when  necessary,  or  an  equivalent  thereto,  but  no  part 
of  any  person's  property  can  be  justly  taken  from  him  or  applied  to  pub- 
lic uses  without  his  own  consent  or  that  of  the  representative  body  of  free- 
men, nor  can  any  man  who  is  conscientiously  scrupulous  of  bearing  arms 
be  justly  compelled  thereto,  if  he  will  pay  such  equivalent;  *  *  * 
and  previous  to  any  law  being  made  to  raise  a  tax,  the  purpose  for 
which  it  is  to  be  raised  ought  to  appear  evident  to  the  legislature  to  be 
of  more  service  to  the  community  than  the  money  would  be  if  not 
collected. 

CHAPTER    II. 

Sec  9.  (Provides  that  the  quorum,  ordinarily  a  majority,  must  lie 
two-thirds  of  the  representatives  to  pass  a  bill  to  raise  a  state  tax.) 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are': 

(1)  The  listers,  three,  four,  or  five,  elected  at  the  annual  town  meeting 
in  each  town. 

'This  compilation  is  derived  mainly  from  the  following  sources: 
The  Vermont  Statutes  of  1894. 
The  Session  Laws,  1896,  1898,  1900,  and  1902. 

Some  assistance  was  also  obtained  from  History  of  Taxation  in  Ver- 
mont, by  Frederick  A.  Wood,  Columbia  College,  New  York,  1894. 


(2)  The  collector  of  taxes,  one,  if  the  town  so  orders,  elected  annually 
at  town  meeting  in  each  town.  If  the  town  does  riot  order  the  election 
of  a  tax  collector,  taxes  are  collected  by  the  constable. 

(3)  For  unorganized  towns  and  gores  (sobrante),  a  commissioner  in 
each  county,  who  is  lister  and  collector,  appointed  biennially  by  the 
governor. 

(4)  The  board  of  civil  authority,  composed  of  the  town  clerk,  select- 
men, and  justices,  together  with  the  listers,  constitutes  a  board  for  the 
abatement  of  town  taxes. 

(5)-  The  commissioner  of  state  taxes,  who  administers  the  state  taxes 
on  corporations,  appointed  biennially  by  the  governor. 

State  Revenues, 
a.  taxes. 

I  and  II.    The  general  property  and  poll  tax. 

The  poll  tax  constitutes  an  integral  part  of  the  gen- 
eral property  tax  and  can  not  be  described  separately. 
Polls  are  "set  in  the  list"  at  $2  each,  that  is,  given  a 
valuation  of  $200  as  though  property. 
1.  Base — 

a.  The  property  and  polls  included  and  exempt. — The 
base  is  the  so-called  "grand  list"  composed  of  (a)  the 
polls  of  all  male  inhabitants  of  the  state  over  21  and 
under  70  years  of  age,  except  disabled  soldiers  of  the 
war  of  the  rebellion,  paupers,  and  members  of  the  state 
militia  and  of  fire  companies  if  their  towns  so  vote, 
which  polls  are  "set  in  the  list"  at  the  arbitrary  value 
of  $2  each ;  (b)  1  per  cent  of  the  value  in  money  on  the 
1st  day  of  April  in  the  year  of  their  assessment  of  all 
real  and  personal  estates,  except  such  as  are  specially 
exempt. 

(1)  "  Real  estate "  is  not  specially  defined  for  purposes  of  taxation, 
but  engines  and  boilers,  except  railway  and  steamboat,  are  "set  in  the 
list "  as  real  estate. 

When  property  is  mortgaged,  the  mortgagor  is  treated  as  the  owner 
until  after  foreclosure. 

(2)  "Personal  estates"  are  not  specially  defined  for  purposes  of  tax- 
ation, but  perpetual  or  redeemable  leases  are  "set  in  the  list "  at  a  sum  of 
which  the  rent  is  6  per  cent. 

(3)  Exemptions,  in  addition  to  all  public  property,  are:  Real  estate  of 
posts  of  Grand  Army  of  the  Republic;  shares  of  stock  in  foreign  corpo- 
rations elsewhere  taxed;  personal  estate  situated  and  taxed  in  another 
state;  railroad  stock;  real  estate  of  any  railroad  for  first  eight  years  of 
operation;  money  loaned  to  towns,  etc.,  at  not  over  3  per  cent;  all  es- 
tates for  public,  pious,  or  charitable  uses;  public  and  free  circulating 
libraries;  lands  leased  by  towns  for  educational  purposes,  and  lands 
owned  or  leased  by  colleges',  academies,  or  for  the  support  of  the  gospel; 
lands  of  agricultural  societies  used  for  fairs;  normal  schools;  cemeteries; 
household  furniture  of  every  person  to  $500 ;  wearing  apparel;  private 
and  professional  libraries;  mechanics' and  farmers' tools;  family  provi- 
sions for  one  year;  poultry  to  $20;  one  watch,  one  organ  or  piano; 
sheep,  cattle,  horses,  and  swine,  not  over  4  months  old,  and  hay  and 
produce  to  winter  out  the  stock;  and  for  each  person  one  wagon,  one 
sleigh,  and  harness  for  same,  not  over  $100.  Manufacturing  establish- 
ments (except  pulp,  lumber,  and  charcoal),  quarries,  and  mines  if 
amount  invested  exceeds  $1,000  maybe  exempted  for  ten  years  from 
commencement  of  business;  unoccupied  farms  reclaimed  may  be  ex- 
empted for  five  years.  There  are  also  some  exemptions  by  legislative 
contract  not  mentioned  in  the  statutes,  such  as  a  part  of  the  property  of 
certain  persons  connected  with  institutions  of  learning. 

The  following  polls  are  exempt:  Actual  poor  and  persons  applying 
therefor  who  served  in  war  of  rebellion. 


TAXATION  AND  REVENUE  SYSTEMS— VERMONT. 


805 


b.  Assessment. — This  is  called  "listing."  The  valu- 
ations refer  strictly  to  April  1  in  each  year.  Only  1  per 
cent  of  all  property  is  "set  in  the  list." 

Real  estate  is  listed  or  appraised  quadrennially  (1898, 
1902),  the  listing  being  completed  by  the  first  Tuesday 
in  July,  except  in  towns  of  5,000  or  more  inhabitants, 
and  in  these  by  the  fourth  Tuesday  in  July.  Buildings 
not  having  more  than  ten  acres  of  land,  mills,  factories, 
stores,  forges,  furnaces,  mines,  and  quarries  are  listed  as 
first-class  real  estate;  all  other,  and  particularly  farm 
buildings,  as  second-class  real  estate.  Real  estate  of 
railroads  not  used  in  operating  the  road  is  listed  as 
other  real  estate.  The  quadrennial  appraisal  is  cor- 
rected annually  for  alterations  only. 

Each  taxpayer  is  required  to  furnish  the  listers  a 
sworn  inventory  of  his  property  subject  to  taxation, 
but  the  appraisal  is  made  by  the  listers.  The  appraisal 
is  to  be  "at  such  sum  as  they  would  appraise  the  same 
in  payment  of  a  just  debt  due  from  a  solvent  debtor." 

Listers  deduct  from  the  appraised  value  of  the  per- 
sonal estate  of  each  taxpayer  a  sum  equal  to  the  excess, 
if  any,  of  debts  owing  by  the  taxpayer  over  the  aggre- 
gate amount  of  his  United  States  bonds  and  other 
stocks  and  bonds  exempt'  from  taxation,  and  the 
amount  of  his  deposits  in  all  savings  banks  in  the  state 
not  exceeding  $1,500  (made  $2,000  in  1902),  and  take 
1  per  cent  of  the  balance  as  the  list  of  personal  estate  of 
such  taxpayer.  But  no  deduction  of  debts  is  allowed 
unless  the  name  of  the  creditor  is  stated. 

Willfully  omitting  to  make,  swear  to,  and  deliver 
an  inventory  or  delivering  a  false  inventory  renders 
the  taxpayer  liable  to  double  appraisal  and  deprives 
him  of  his  right  to  have  a  hearing  before  the  board  of 
abatements.  False  statements  as  to  deposits  in  excess 
of  $1,500  ($2,000)  work  forfeiture  of  the  excess,  and 
deposits  in  the  name  of  another  person  to  evade  taxa- 
tion are  also  forfeited. 

Savings  banks  are  required  to  make  return  of  the  names  and  addresses 
of  depositors,  if  any,  witli  deposits  in  excess  of  $1,500  ($2,000),  and  the 
amount  of  such  individual  excess. 

Shares  of  stock  in  corporations,  except  those  taxed  by  the  state  (see 
IV,  Corporation  taxes),  are  to  be  set  in  the  list  like  other  personal  estate 
to  the  owner,  in  the  town  where  he  resides,  if  he  resides  in  the  state; 
otherwise,  in  the  town  where  the  corporation  has  its  place  of  business. 

c.  Equalization. — There  is  no  "equalization,"  so 
called,  between  individuals,  but  between  April  25  and 
May  12  the  board  of  abatements  hears  persons  aggrieved 
by  their  appraisals,  and  may  correct  the  list. 

2.  Rate— 

The  rate,  usually  expressed  in  cents  on  each  dollar  of 
the  grand  list,  is  fixed  and  levied  for  state  and  county 
purposes  by  the  general  assembly. 

There  is  a  regular  levy  of  5  cents  on  the  dollar  for  schools  and  .5  cents 
on  the  dollar  for  highways. 

3.  Collection — 

State  and  county  taxes  are  collected  by  the  consta- 
bles or  town  collectors  of  taxes  on  warrants  issued  by 


the  state  or  county  treasurers,  but  those  of  unorganized 
towns  and  gores  (sobrante),  by  the  commissioner. 
Taxes  are  a  lien  on  any  property,  and  those  on  polls 
and  personal  property  may  be  collected  by  seizure  of 
real  estate.  Taxes  are  due  on  six  days'  notice  and 
may  then  be  collected  by  distraint  and  sale,  and  if 
the  taxpayer  has  no  property,  he  may  be  imprisoned. 
Distraint  may  be  made  at  any  time  up  to  six  years  from 
the  issue  of  the  warrant. 

Towns  are  held  liable  as  corporations  for  their 
shares  of  state  taxes,  and  the  goods  and  chattels  of 
any  inhabitants  may  be  seized  by  the  sherifF  for  such 
taxes.  Owners  of  goods  thus  seized  have  recourse, 
however,  against  the  town  with  12  per  cent  interest. 

II.  Poll  tax. 

The  poll  tax  is  incorporated  with  the  general  prop- 
erty tax.     (See  State  revenues,  I  and  II.) 

III.  Inheritance  tax. 

All  property  within  the  jurisdiction  of  this  state, 
and  any  interest  therein,  whether  belonging  to  inhabit- 
ants of  this  state  or  not,  which  passes  by  inheritance 
or  gift  other  than  to  the  father,  mother,  husband,  wife, 
lineal  descendant,  adopted  child,  the  wife  or  widow  of 
a  son,  husband  of  a  daughter,  or  to  charitable,  edu- 
cational, or  religious  societies  whose  property  is  ex- 
empt, is  subject  to  a  tax  of  5  per  cent.  But  estates  of 
less  than  $2,000  clear  value  are  exempt.  (This  law 
was  amended  in  1905.) 

IV.  Corporation  taxes. 

The  classes  of  corporations  described  below  are  not 
taxable  on  the  "grand  list"  or  under  the  general  prop- 
erty tax.  Some  of  them  are  taxable  on  their  property 
or,  at  their  option,  on  gross  receipts,  but  when  taxable 
on  their  property,  the  rate  is  fixed  and  the  machinery 
for  assessment  and  collection  is  so  different  from  that 
generally  used  that  they  are  set  here  as  special  taxes. 

A  state  tax  for  the  payment  of  state  expenses  is 
assessed  upon  the  property,  business,  or  corporate 
franchises  (of  this  state)  (struck  out  in  1902)  of  rail- 
road, insurance,  guaranty,  express,  telegraph,  tele- 
phone, steamboat,  car  and  transportation  companies, 
sleeping  car  companies,  mortgage,  loan  or  investment 
companies,  and  other  corporations  and  persons,  as 
specified  below,  and  the  corporations  or  persons  so 
taxed  are  not  taxable  on  the  "grand  list." 

These  taxes  are  administered  by  the  commissioner 
of  state  taxes. 

Railroads  may  at  their  option  pay  either  a  tax  of  seven-tenths  of 
1  per  cent  on  their  property  in  the  state  appraised  by  the  unit  rule  on  a 
mileage  basis,  or  a  tax  of  2\  per  cent  on  their  gross  earnings  similarly 
appraised  by  the  unit  rule  on  a  mileage  basis.  The  same  provisions 
apply  to  steamboat,  car,  and  transportation  companies  (1902). 

Telephone  companies  pay  3  per  cent  on  gross  earnings  in  the  state 
or  (since  1902)  40  cents  each  on  the  average  number  of  transmitters, 
and  30  cents  per  mile  of  wire. 

Telegraph  companies  may,  at  their  option,  pay  either  60  cents  per 
mile  of  poles  and  one  wire  and  40  cents  per  mile  for  each  additional  wire 
or  3  per  cent  of  gross  earnings  in  the  state. 


806 


WEALTH,  DEBT,  AND  TAXATION. 


Sleeping  and  palace  car  companies  pay  5  per  cent  of  their  gross 
earnings  in  the  state. 

Express  companies  pay  4  per  cent  of  gross  receipts  from  business  done 
in'  the  state. 

Steamboat,  car,  and  transportation  companies  pay  at  their  option 
either  seven-tenths  of  1  per  cent  on  property  and  franchises,  or  2  per  cent 
of  entire  gross  earnings.     (Made  2\  per  cent  in  1902.) 

Insurance  and  guaranty  companies  pay  2  per  cent  per  annum  on 
gross  amount  of  premiums  and  assessments  collected,  less  return  pre- 
miums, dividends  to  policy  holders,  and  reinsurance  with  domestic 
companies. 

Life  insurance  companies,  domestic,  pay  in  addition  1  per  cent  on  the 
surplus  above  the  necessary  reserve  at  4  per  cent,  but  may  deduct  the 
value  of  real  estate  locally  taxed. 

Savings  banks  and  trust  companies  pay  seven-tenths  of  1  per  cent 
on  the  average  amount  of  deposits  and  accumulations,  less  not  over 
10  per  cent  of  their  assets  when  invested  in  United  States  bonds,  the 
assessed  valuation  of  real  estate  locally  taxed,  and  also  the  amount,  if 
any,  of  individual  deposits  in  excess  of  $1,500  each,  listed  to  the  deposit- 
ors in  towns  of  this  state  where  such  depositors  reside.  These  taxes 
are  payable  in  semiannual  installments. 

Building  and  investment  companies  and  agents  for  the  same  pay 
1  per  cent  upon  the  aggregate  amount  of  moneys  received  to  be  loaned 
without  the  state  and  upon  the  aggregate  amount  of  bonds,  mortgages, 
choses  in  action,  and  securities  negotiated,  unless  they  return  the  name 
and  address  of  the  person  for  whom  the  investment  was  made,  in  which 
case  the  tax  is  assessed  to  him. 

V.  Business  taxes  and  licenses. 

Every  foreign  corporation  and  every  domestic  corporation  having 
capital  stock  or  deposit  of  $50,000  or  less,  pays  an  annual  license  tax  of 
$10;  for  each  $50,000  or  fraction  thereof  over  $50,000,  $5,  but  no  tax 
exceeds  $50;  to  sell  fertilizers,  annually,  $100;  itinerant  vendors,  state 
license,  annual,  $25. 

B.    FEES. 

By  the  insurance  commissioners. — For  a  state  license  or  renewal 
thereof  to  foreign  insurance  corporations,  $5 ;  for  license  to  an  insurance 
agent  for  foreign  companies,  annually,  $2;  for  license  to  insurance 
broker,  or  renewal,  annually,  $10;  for  filing  charter,  $30;  for  filing  an- 
nual statement,  $20. 

By  the  board  of  dental  examiners. — For  examination  and  license,  $5. 

By  the  state  board  of  pharmacy. — For  examination  and  license,  $5. 

County  Revenues. 


a.  taxes. 

I.  The  general  property  and  poll  tax. 

1.  Base — 

The  property  included  and  the  method  of  assessing 
polls  with  property,  as  well  as  the  method  of  assess- 
ment and  of  equalization,  have  been  described  under 
state  revenues. 

2.  Rate— 

The  rate  for  county  purposes  is  determined  by  the 
legislature. 

3.  Collection — 

Taxes  for  the  county  are  collected  by  the  local  tax 
collectors  as  are  other  taxes. 

II.  Poll  tax. 

The  poll  tax  is  incorporated  with  the  general  prop- 
erty tax. 


Ill  and  IV.   Inheritance  tax  and  corporation  taxes. 

There  are  no  county  inheritance  or  corporation 
taxes. 

V.  Business  taxes  and  licenses. 

Peddlers — on  foot,  annually,  $15;  with  a  horse  or  horses,  or  by  rail- 
j  road,  annually,  $30;  selling  watches,  jewelry,  or  patent  medicines,  an- 
I  nually,  $60.  Paid  to  county  treasurers,  remitted  to  state  treasurers, 
J    and  reapportioned  among  the  counties  on  basis  of  population. 

Municipal  Revenues. 

a.  TAXES. 

I.  The  general  property  and  poll  tax. 

1.  Base — 

The  property  and  polls  included  and  the  method 
of  assessment  and  of  equalization  are  the  same  as  for 
state  taxes. 

2.  Rate— 

The  proper  legislative  authorities  of  the  towns, 
school  districts,  incorporated  villages,  and  cities  may 
levy  taxes  and  determine  the  rates  of  municipal  taxa- 
tion.    This  is  usually  done  in   town  meeting. 

The  selectmen  must  levy  a  highway  tax  of  20  cents  on  the  dollar. 

3.  Collection — 

Local  taxes  are  collected  as  state  taxes. 

II.  Poll  tax. 

The  poll  tax  is  incorporated  with  the  general  prop- 
erty tax. 

Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There  are  no  municipal  inheritance  or  corporation 
taxes. 
V.  Business  taxes  and  licenses. 

Itinerant  vendors  are  taxed  an  amount  equal  to  the  sum  which  would 
be  produced  if  the  rate  of  state  and  local  taxes  for  the  year  was  levied 
upon  the  goods  of  such  vendors  as  appraised  by  the  listers. 

Dogs,  in  towns:  For  a  male  or  spayed  female,  $1;  for  a  female,  $4. 
Selectmen  may  license  and  tax  circuses  for  two  days'  exhibition  not 
more  than  $100  nor  less  than  $60;  menageries,  $50  to  $10. 

School  Revenues. 

The  funds  deposited  by  the  United  States  were 
apportioned  among  the  towns  in  proportion  to  the 
population  and  are  to  be  invested  by  the  school  trus- 
tees, the  interest  being  used  to  support  the  schools. 
The  "Huntington  fund"  is,  however,  held  by  the 
state,  and  6  per  cent  interest  apportioned  among  the 
towns. 

The  state  levies  an  annual  tax  of  5  cents  on  each  dol- 
lar on  the  grand  list  for  schools,  the  proceeds  being 
divided  among  the  towns  in  proportion  to  the  number 
of  legal  schools.  (A  legal  school  is  one  kept  twenty- 
six  weeks  by  a  registered  teacher.) 

The  selectmen  have  control  usually  of  the  town 
school  fund,  consisting  of  the  investments  for  schools, 
and  are  also  to  appropriate  annually  for  school  pur- 
poses a  sum  not  exceeding  one-half  nor  less  than  one- 
fifth  of  the  grand  list  of  the  town  district  and  to  assess 
a  tax  to  meet  such  appropriation. 


TAXATION  AND  REVENUE  SYSTEMS— VIRGINIA. 


807 


VIRGINIA.1 


The  revenue  laws  of  Virginia  underwent  extensive 
revision  in  1903,  pursuant  to  the  new  constitution, 
which  went  into  effect  July  10,  1902.  This  compila- 
tion relates  as  strictly  as  may  be  to  the  fiscal  year  of 
1902,  for  which  the  assessment  refers  to  February  1, 
1902,  and  collection  is  made  between  July  1  and 
December  1,  and  therefore  is  concerned  with  the  new 
provisions  in  but  a  few  instances. 

In  1902,  in  addition  to  the  general  property  tax, 
there  were  poll  and  income  taxes,  a  system  of  license 
taxes  designed  to  tax  various  lines  of  business  that 
could  not  readily  be  reached  by  the  ad  valorem  system, 
taxes  on  suits,  wills,  administrations,  deeds,  and  seals, 
corporation  taxes  on  transportation,  building  and  loan, 
and  insurance  companies,  and  a  collateral  inheritance 
tax. 

The  constitution  of  1902  and  the  act  of  April  16,1903, 
extend  the  tax  system  most  comprehensively.  The 
tax  on  incomes,  the  tax  on  collateral  inheritances,  and 
other  taxes  are  continued.  There  was  introduced  an 
elaborate  system  of  fees  on  the  charters  of  transpor- 
tation, transmission,  and  other  companies,  annual  reg- 
istration fees  on  all  corporations,  and  an  annual  state 
franchise  tax  graduated  according  to  capital.  A  sys- 
tem of  taxation  for  railroads,  street  railways,  and 
canals  is  established  by  the  constitution,  to  remain  in 
force  till  January  1,  1913,  after  which  date  it  may  be 
altered  by  the  legislature.  Whenever  a  franchise  tax 
is  imposed  on  a  domestic  corporation,  or  whenever  all 
the  capital  of  a  domestic  corporation  is  taxed,  its  shares 
of  stock  are  exempt. 

CONSTITUTIONAL    PROVISIONS. 

(1869.) 

ARTICLE    X. 

Sec.  1.  Taxation,  except  as  hereinafter  provided,  whether  imposed 
by  the  state,  county,  or  corporate  bodies,  shall  be  equal  and  uniform, 
and  all  property,  both  real  and  personal,  shall  be  taxed  in  proportion 
lo  its  value,  to  be  ascertained  as  prescribed  by  law.  No  one  species  of 
property,  from  which  a  tax  may  be  collected,  shall  be  taxed  higher  than 
any  other  species  of  property  of  equal  value. 

Sec.  2.  No  tax  shall  be  imposed  on  any  of  the  citizens  of  this  state 
for  the  privilege  of  taking  or  catching  oysters  from  their  natural  beds 
with  tongs  in  the  waters  thereof;  but  the  amount  of  sales  of  oysters  so 
taken  by  any  citizen  in  any  one  year  may  be  taxed  at  a  rato  not  exceed- 
ing the  rate  of  taxation  imposed  upon  any  other  species  of  property. 

Sec.  3.  The  legislature  may  exempt  all  property  used  exclusively  for 
state,  county,  municipal,  benevolent,  charitable,  educational,  and  reli- 
gious purposes. 

1  This  compilation  is  derived  mainly  from  the  following  sources: 

The  Code  of  Virginia,  approved  May  21, 1887.  Published  by  James  E. 
Goode,  Richmond,  Va.,  1887. 

General  Laws  of  Virginia.  J.  G.  Pollard.  1887-1894.  Containing 
an  act  approved  March  6,  1890. 

Supplement  to  the  Code  of  Virginia.  J.  G.  Pollard.  1887-1898: 
Richmond,  Va.,  1898. 

Session  Laws,  1899-1900,  1901. 

The  Tax  Laws  of  Virginia,  1900,  published  by  the  auditor  of  public 
accounts,  with  amendment  down  to  1902. 

The  Code  of  Virginia,  as  amended,  to  adjournment  of  the  general 
assembly,  1904.     J.  G.  Pollard. 


Sec.  4.  The  general  assembly  may  levy  a  tax  on  incomes  in  excess  of 
six  hundred  dollars  per  annum  and  upon  the  following  licenses,  viz:  The 
sale  of  ardent  spirits,  theatrical  and  circus  companies,  menageries,  jug- 
glers, itinerant  peddlers,  and  all  other  shows  and  exhibitions  for  which 
an  entrance  fee  is  required;  commission  merchants,  persons  selling  by 
sample,  brokers  and  pawnbrokers,  and  all  other  business  which  can  not 
be  reached  by  the  ad  valorem  system.  The  capital  inycsted  in  all  busi- 
ness operations  shall  be  assessed  and  taxed  as  other  property.  Assess- 
ment upon  all  stock  shall  be  according  to  the  market  value  thereof. 

Sec.  5.  The  general  assembly  may  levy  a  tax,  not  exceeding  one  dol- 
lar per  annum,  on  every  male  citizen  who  has  attained  the  age  of 
twenty-one  years,  which  shall  be  applied  exclusively  in  aid  of  public 
free  schools,  and  counties  and  corporations  shall  have  power  to  impose 
a  capitation  tax  not  exceeding  fifty  cents  per  annum  for  all  purposes. 

Sec.  6.  The  general  assembly  shall  provide  for  a  reassessment  of  the 
real  estate  of  this  state  in  the  year  1869,  or  as  soon  thereafter  as  prac- 
ticable, and  every  fifth  year  thereafter  (1899)  (1904);  provided,  in  mak- 
ing such  assessment  no  land  shall  be  assessed  above  or  below  its  value. 

Sec.  16.  Every  law  which  imposes,  continues,  or  levies  a  tax  shall 
distinctly  state  the  tax  and  the  object  to  which  it  is  to  be  applied,  and 
it  shall  not  be  sufficient  to  refer  to  any  other  law  to  fix  such  tax  or  object. 

Sec.  20.  No  other  or  greater  amount  of  tax  or  revenue  shall  at  any 
time  be  levied  than  may  be  required  for  the  necessary  expenses  of  the 
government  or  to  pay  the  existing  indebtedness  of  the  state. 

(1902.) 

The  constitution  of  1902  was  framed  by  a  convention 
which  assembled  in  Richmond,  June  12,  1901.  The 
instrument  was  proclaimed  by  the  convention,  June  6, 
1902,  and  became  operative,  July  10,  1902. 

ARTICLE    XIII. 

Sec.  168.  All  property,  except  as  hereinafter  provided,  shall  be  taxed; 
all  taxes,  whether  state,  local,  or  municipal,  shall  be  uniform  upon  the 
same  class  of  subjects  within  the  territorial  limits  of  the  authority  levy- 
ing the  tax,  and  shall  be  levied  and  collected  under  general  laws. 

Sec.  169.  Except  as  hereinafter  provided,  all  assessments  of  real  es- 
tate and  tangible  personal  property  shall  be  at  their  fair  market  value, 
to  be  ascertained  as  prescribed  by  law.  The  general  assembly  may  allow 
a  lower  rate  of  taxation  to  be  imposed  for  a  period  of  years  by  a  city  or 
town  upon  land  added  to  its  corporate  limits  than  is  imposed  on  simi- 
lar property  within  its  limits  at  the  time  such  land  is  added.  Nothing 
in  this  constitution  shall  prevent  the  general  assembly,  after  the  first 
day  of  January,  nineteen  hundred  and  thirteen,  from  segregating  for  the 
purposes  of  taxation  the  several  kinds  and  classes  of  property,  so  as  to 
specify  and  determine  upon  what  subjects  state  taxes  and  upon  what 
subjects  local  taxes  may  be  levied. 

Sec.  170.  The  general  assembly  may  levy  a  tax  on  incomes  in  excess 
of  six  hundred  dollars  per  annum;  may  levy  a  license  tax  upon  any 
business  which  can  not  be  reached  by  the  ad  valorem  system,  and  may 
impose  state  franchise  taxes,  and  in  imposing  a  franchise  tax  may,  in 
its  discretion,  make  the  same  in  lieu  of  taxes  upon  other  property,  in 
whole  or  in  part,  of  a  transportation,  industrial,  or  commercial  corpo- 
ration. Whenever  a  franchise  tax  shall  be  imposed  upon  a  corporation 
doing  business  in  this  state ,  or  whenever  all  the  capital ,  however  invested, 
of  a  corporation  chartered  under  the  laws  of  this  state  shall  be  taxed, 
the  shares  of  stock  issued  by  any  such  corporation  shall  not  be  further 
taxed.  Nc  city  or  town  shall  impose  any  tax  or  assessment  upon  abut- 
ting landowners  for  street  or  other  public  local  improvements  except 
for  making  and  improving  the  walkways  upon  then-existing  streets  and 
improving  and  paving  the  existing  alleys,  and  for  either  the  construc- 
tion or  for  the  use  of  sewers,  and  the  same  when  imposed  shall  not  be  in 
excess  of  the  peculiar  benefits  resulting  therefrom  to  such  abutting  land- 
owners. Except  in  cities  and  towns  no  such  taxes  or  assessments  for 
local  public  improvements  shall  be  imposed  on  abutting  landowners. 

Sec.  171.  The  general  assembly  shall  provide  for  a  reassessment  of 
real  estate  in  the  year  nineteen  hundred  and  five  and  every  fifth  year 


808 


WEALTH,  DEBT,  AND  TAXATION. 


thereafter,  except  thai  of  railway  and  canal  corporations,  which,  after 
January  the  first,  nineteen  hundred  and  thirteen,  may  be  assessed  as 
the  general  assembly  may  provide. 

Sec.  172.  The  general  assembly  shall  provide  for  the  special  and  sepa- 
rate assessment  of  all  coal  and  other  mineral  land,  but  until  such  special 
assessment  is  made  such  land  shall  be  assessed  under  existing  laws. 

Sec.  173.  The  general  assembly  shall  levy  a  state  capitation  tax  of, 
and  not  exceeding,  one  dollar  and  fifty  cents  per  annum  on  every  male 
resident  of  the  state  not  less  than  twenty-one  years  of  age,  except  those 
pensioned  by  this  state  for  military  services,  one  dollar  of  which  shall  be 
applied  exclusively  in  aid  of  the  public  free  schools,  in  proportion  to  the 
school  population,  and  the  residue  shall  be  returned  and  paid  by  the 
state  into  the  treasury  of  the  county  or  city  in  which  it  was  collected,  to 
be  appropriated  by  the  proper  county  or  city  authorities  to  such  county 
or  city  purposes  as  they  shall  respectively  determine;  but  said  capitation 
tax  shall  not  be  a  lien  upon,  nor  collected  by  legal  process  from,  the  per- 
sonal property  which  may  be  exempt  from  levy  or  distress  under  the 
poor  debtor's  law.  The  general  assembly  may  authorize  the  board  of 
supervisors  of  any  county  or  the  council  of  any  city  or  town  to  levy  an 
additional  capitation  tax  not  exceeding  one  dollar  per  annum  on  every 
such  resident  within  its  limits,  which  shall  be  applied  in  aid  of  the  public 
schools  of  such  county,  city,  or  town,  nor  for  such  other  county,  city,  or 
town  purposes  as  they  shall  determine. 

Sec.  174.  After  this  constitution  shall  be  in  force,  no  statute  of  limi- 
tations shall  run  against  any  claim  of  the  state  for  taxes  upon  any  prop- 
erty; nor  shall  the  failure  to  assess  property  for  taxation  defeat  a  subse- 
quent assessment  for  and  collection  of  taxes  for  any  preceding  year  or 
years,  unless  such  property  shall  have  passed  to  a  bona  fide  purchaser  for 
value,  without  notice;  in  which  latter  case  the  property  shall  be  assessed 
for  taxation  against  such  purchaser  from  the  date  of  his  purchase. 

Sec.  176.  The  state  corporation  commission  shall  annually  ascertain 
and  assess,  at  the  time  hereafter  mentioned,  and  in  the  manner  required 
of  the  board  of  public  works,  by  the  law  in  force  on  January  the  first, 
nineteen  hundred  and  two,  the  value  of  the  roadbed,  and  other  real 
estate,  rolling  stock,  and  all  other  personal  property  whatsoever  (except 
its  franchise  and  the  nontaxable  shares  of  stock  issued  by  other  cor- 
porations) in  this  state  of  each  railway  corporation,  whatever  its  motive 
power,  now  or  hereafter  liable  for  taxation  upon  such  property;  the 
canal  bed  and  other  real  estate,  the  boats  and  all  other  personal  property 
whatsoever  (except  its  franchise  and  the  nontaxable  shares  of  stock 
issued  by  other  corporations)  in  this  state,  of  each  canal  corporation 
empowered  to  conduct  transportation ;  and  such  property  shall  be  taxed 
for  state,  county,  city,  town,  and  district  purposes  in  the  same  manner  as 
authorized  by  said  law,  at  such  rates  of  taxation  as  may  be  imposed  by 
them,  respectively,  from  time  to  time,  upon  the  real  estate  and  personal 
property  of  natural  persons:  Provided,  That  no  tax  shall  be  laid  upon  the 
net  income  of  such  corporations. 

Sec.  177.  Each  such  railway  or  canal  corporation,  including  also  any 
such  as  is  exempt  from  taxation  as  to  its  works,  visible  property,  or 
profits,  shall  also  pay  an  annual  state  franchise  tax  equal  to  one  per 
centum  upon  the  gross  receipts  hereafter  specified  in  section  one  hundred 
and  seventy-eight  for  the  privilege  of  exercising  its  franchises  in  this 
state,  which,  with  the  taxes  provided  for  in  section  one  hundred  and 
seventy-six,  shall  be  in  lieu  of  all  other  taxes  or  license  charges  whatso- 
ever upon  the  franchises  of  such  corporation,  the  shares  of  stock  issued 
by  it,  and  upon  its  property  assessed  under  section  one  hundred  and 
seventy-six:  Provided,  That  nothing  herein  contained  shall  exempt  such 
corporation  from  the  annual  fee  required  by  section  one  hundred  and  fifty- 
seven  of  this  constitution, or  from  assessments  for  street  and  other  public 
local  improvements  authorized  by  section  one  hundred  and  seventy: 
And  provided  further,  That  nothing  herein  contained  shall  annul  or  inter- 
fere with  or  prevent  any  contract  or  agreement  by  ordinance  between 
street  railway  corporations  and  municipalities  as  to  compensation  for 
the  use  of  the  streets  or  alleys  of  such  municipalities  by  such  railway 
corporations. 

Sec.  178.  The  amount  of  such  franchise  tax  shall  be  equal  to  one  per 
centum  of  the  gross  transportation  receipts  of  such  corporations  for  the 
year  ending  June  the  thirtieth  of  each  year,  to  be  ascertained  by  the 
state  corporation  commission,  in  the  following  manner: 


(a)  When  the  road  or  canal  of  the  corporation  lies  wholly  within  this 
state,  the  tax  shall  be  equal  to  one  per  centum  of  the  entire  gross  trans- 
portation receipts  of  such  corporation. 

(6)  When  the  road  or  canal  of  the  corporation  lies  partly  within  and 
partly  without  this  state,  or  is  operated  as  a  part  of  a  line  or  system 
expending  beyond  this  state,  the  tax  shall  be  equal  to  one  per  centum  of 
the  gross  transportation  receipts  earned  within  this  state,  to  be  deter- 
mined as  follows:  By  ascertaining  the  average  gross  transportation 
receipts  per  mile  over  its  whole  extent  within  and  without  this  state  and 
multiplying  the  result  by  the  number  of  miles  operated  within  this  state: 
Provided,  That  from  the  sum  so  ascertained  there  may  be  a  reasonable 
deduction  because  of  any  excess  of  value  of  the  terminal  facilities  or 
other  similar  advantages  in  other  states  over  similar  facilities  or  advan- 
tages in  this  state. 

Sec.  179.  (Reports  required  of  corporations  to  the  state  corporation 
commission  to  form  basis  of  assessment  of  property  and  franchise  taxes.) 

Sec.  180.  (Application  by  corporations  for  relief  from  the  assessment .) 

Sec.  181.  (Taxation  of  corporations  as  stated  in  sections  176  to  180, 
inclusive,  to  remain  fixed  from  January  1,  1903,  to  January  1,  1913, 
and  thereafter  until  modified  by  the  general  assembly.) 

Sec.  182.  (Taxation  of  shares  of  stock  of  trust  or  security  companies 
and  incorporated  banks.) 

Sec.  183.  (Exemption.) 

Sec.  186.  (Collection  and  disposition  of  state  revenue.) 

Sec.  188.  (Limit  of  tax  or  revenue.) 

Sec.  189.  (Rate  of  taxation.) 

article  xii. 
Sec.  157.  (Fees  from  corporations.) 

article  ix. 
Sec.  136.  (Local  school  taxes.) 

article  X. 
.  Secs.  134-5.  (School  funds.) 

ARTICLE    IV. 

Sec  50.  (Enactment  of  tax  laws.) 

ARTICLE    II. 

Sec.  21 .  (Payment  of  state  poll  taxes  as  a  condition  of  voting.) 
OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  Assessors,  specially  appointed  by  the  county,  corporation,  and 
hustings  courts  of  the  several  counties  and  cities  of  the  state  by  the  first 
of  January  in  1890,  and  every  fifth  year  thereafter,  to  assess  lands  and 
improvements  thereon.  One  is  appointed  for  each  district  in  which 
there  is  a  commissioner  of  the  revenue. 

(2)  Commissioners  of  the  revenue,  elected  in  cities  and  counties  for  a 
term  of  two  years. 

(3)  City  treasurer,  elected  for  a  term  of  three  years,  who  acts  as  col- 
lector in  the  city. 

(4)  County  treasurer,  elected  for  a  term  of  four  years,  who  is  col- 
lector of  taxes  for  the  county. 

(5)  Auditor  of  public  accounts,  elected  for  two  years. 

(6)  Board  of  public  works,  consisting  of  the  governor,  auditor,  and 
treasurer  of  the  commonwealth,  which  formerly  (before  1902)  assessed 
railroads,  and  performed  certain  other  duties  connected  with  taxation. 

(7)  By  the  constitution  of  1902  there  was  established  a  state  corpora- 
tion commission,  composed  of  three  members  appointed  by  the  governor 
for  six  years,  to  take  the  place  of  the  board  of  public  works. 

State  Revenues. 

Prefatory  note. — There  is  a  special  classification  of  taxes  pro- 
vided for  in  the  revenue  laws  of  Virginia.  That  classification  has  not 
been  adopted  in  the  following  analysis,  because  it  seemed  to  be  somewhat 


TAXATION  AND  REVENUE  SYSTEMS— VIRGINIA 


809 


desirable  to  present  the  tax  system  in  the  same  form  as  that  for  the 
other  states.  But  as  the  classilieation  used  in  the-  laws  may  throw  some 
light  upon  the  working  of  the  system,  and  specially  upon  the  relation  of 
the  different  parts  one  to  the  other,  an  abstract  of  it  is  here  presented: 

1 .  Taxes  on  lands  and  lots. 

2.  Taxable  subjects: 

Schedule  A. — Male  inhabitants,  white  and  colored,  poll  tax. 
Schedule  B. — Personal  estate  (in  goods  and  chattels). 
Schedule  C. — Choses  in  action,  moneys,  credits,  and  capital,  also  toll 
bridges. 

Schedule  D. — Incomes. 

3.  On  business  and  other  subjects,  to  wit,  on  wills  and  administra- 
tions, on  deeds,  on  suits,  on  seals,  on  banks,  on  insurance  companies,  on 
railroad  and  canal  companies,  on  sleeping  car  and  similar  companies,  on 
express  companies,  and  on  telegraph  and  telephone  companies. 

4.  Licenses: 

Schedule  A.— Merchants,     etc.     (See     more    complete    list    under 
licenses  in  the  general  analysis,  below.) 
Schedule  B. — Repealed. 
Schedule  C. — Inns,  restaurants,  etc. 
Schedule  D. — Theaters  and  amusements,  etc. 
Schedule  F. — Attorneys  at  law,  etc. 

A.    TAXES. 

I.  The  general  property  tax. 
1.  Base — 
a.  The  property  included  and  exempt. — All  real 
estate  and  improvements,  and  all  personal  estate  situ- 
ated within  the  commonwealth,  and  the  moneys  and 
credits  of  persons  residing  therein  wherever  situated, 
except  as  specially  exempted,  are  to  be  taxed. 

(1)  and  (2)  Real  and  personal  property  are  not  specially  defined 
for  purposes  of  taxation. 

(3)  Exemptions,  in  addition  to  public  property,  are:  Bonds  of  the 
state  issued  since  1882;  churches;  parsonages;  cemeteries,  public  and 
private;  property  of  educational  institutions  and  of  deaf  and  dumb, 
blind,  lunatic,  and  orphan  asylums;  the  real  estate  of  the  Ladies' 
Mt.  Vernon  Association,  and  of  the  Norfolk  county  ferries,  so  long  as 
used  for  a  highway;  free  libraries;  property  devoted  to  charitable  and 
benevolent  purposes;  property  of  fire  companies;  public  libraries,  and 
property  of  ministers  of  the  gospel  and  of  seminaries  of  learning;  the 
personal  property  of  religious  societies  and  charitable  institutions;  the 
King's  Daughters' Hospital,  of  Portsmouth,  Va.;  and  the  Home  for 
Friendless  Children,  of  Chesterfield  county,  Va. 

o.  Assessment. — There  is  but  one  assessment  for  the 
purpose  of  state  and  county  taxation,  and  in  cities  and 
towns  the  assessment  of  real  estate  for  municipal  taxa- 
tion is  to  be  the  same  as  that  for  the  state.  The  con- 
stitution of  1902  makes  this  provision  as  to  personal 
property  also. 

The  general  assessment  of  lands  throughout  the 
state  is  made  every  five  years,  the  assessment  on  which 
the  taxes  were  extended  in  the  fiscal  year  of  1902 
being  that  of  1900.  Assessors  are  appointed  especially 
for  this  purpose  in  the  counties  and  cities  of  the  state, 
and  are  required  forthwith  to  assess  the  cash  value  of 
each  tract  and  lot  of  land  and  the  improvements 
thereon,  and  to  note  whether  the  owner  is  white  or 
colored. 

The  annual  land  book  or  list  of  the  taxable  real 
estate  is  made  by  the  commissioners  of  the  revenue  in 
the  several  counties  and  cities,  who  ascertain  to  whom 


the  real  estate  is  chargeable  with  taxes  as  of  Febru- 
ary 1  in  each  year.  The  value  of  lands  and  lots  as 
ascertained  by  the  assessor  is  not  to  be  changed  except 
on  account  of  improvements.  Each  commissioner 
takes  with  him  the  last  land  book  and  requires  every 
person  charged  to  swear  to  the  correctness  of  the  entry 
of  his  land  and  to  state  transfers  and  omissions,  which 
information  is  verified  by  the  records.  Lists  of  deeds 
and  lands  devised  and  judgments  are  supplied  the 
commissioner  by  clerks  of  court  and  registers  of  the 
land  office.  Tracts  of  land  in  counties  and  town  lots 
are  taxed  separately.  The  commissioner  is  to  assess 
the  value  or  the  increase  in  value  of  any  building  or 
inclosure  of  the  value  of  $100  and  upward  not  already 
assessed  and  is  to  deduct  for  similar  reduction  in  value. 
Personal  property  is  assessed  annually  as  of  Febru- 
ary 1  by  the  commissioners  of  the  revenue  in  the  sev- 
eral counties,  districts,  and  cities.  Every  person  must 
fill  out  lists  under  oath  of  all  his  personal  estate, 
moneys,  credits,  and  capital,  with  the  value  thereof, 
under  penalty  of  $30  to  $1,000.  The  commissioner, 
upon  his  own  view  or  upon  information  derived  from 
sworn  interrogatories  answered  by  the  taxpayer,  is  to 
assess  a  fair  cash  valuation  and  to  make  up  personal 
property  books  containing  lists  of  persons  and  personal 
property,  separate  books  being  made  up  for  white  and 
colored  persons,  and  on  the  assessments  in  these  books 
the  various  levies  are  extended.  Disagreements  are 
to  be  referred  to  arbitration. 

Debts  due  by  the  taxpayer  to  others  may  be  deducted  from  the 
amount  of  moneys,  credits,  and  capital. 

No  tax  is  to  be  assessed  upon  the  capital  of  any  bank,  state  or  national, 
but  the  real  estate  is  to  be  assessed  as  that  of  individuals.  The  stock- 
holders are  assessed  and  taxed  on  the  market  value  of  their  shares  of 
stock  at  the  same  rate  as  other  moneyed  capital  in  the  hands  of  individ- 
uals residing  in  the  state, and  no  deduction  is  made  for  real  estate  taxed 
to  the  bank.  The  bank  is  required  to  pay  into  the  state  treasury  the 
tax  on  the  shares  by  June  1.  If  such  tax  be  not  paid  within  thirty  days 
from  the  assessment,  the  cashier  of  the  bank  failing  to  make  payment 
and  his  sureties  are  liable  for  the  same  and  20  per  cent  penalty  in 
addition. 

Certain  quasi  public  corporations  are  assessed  by  a  state  board. 

The  board  of  public  works  assesses  the  property  of  railroad  and  canal 
companies  on  the  basis  of  an  elaborate  report  by  such  companies.  A 
company  failing  to  make  the  report  or  to  pay  the  tax  assessed  upon  its 
property  is  to  be  immediately  assessed  under  the  direction  of  the  auditor 
of  public  accounts,  who  rates  the  real  estate  and  rolling  stock  at  $20,000 
per  mile  and  assesses  a  fair  valuation  of  all  their  other  property  upon 
his  own  view,  or  upon  such  information  as  he  may  obtain. 

Railroads  owned  by  mining,  lumber,  and  like  companies  which  trans- 
port passengers  and  freight  for  persons  other  than  the  owners  are  to  be 
assessed  by  the  board  of  public  works;  all  other  property  of  such  com- 
panies not  used  in  operating  the  railroad  must  be  assessed  by  the  com- 
missioner of  the  revenue  in  the  counties  and  cities  where  located. 

The  roDing  stock  of  foreign  corporations  doing  business  in  the  state 
is  to  be  assessed  on  the  average  amount  of  such  property  habitually  used 
in  the  state. 

The  secretary  of  the  board  of  public  works,  after  the  assessment  of 
these  railroad  and  canal  companies,  makes  an  apportionment  or 
statement  of  valuation  to  counties,  cities,  and  school  districts  of  property 
situated  therein  upon  which  taxes  may  be  levied. 

Stocks,  bonds,  and  securities  of  domestic  companies  in  excess  of  their 
indebtedness,  within  or  without  the  state,  are  for  the  purposes  of  the 


810 


WEALTH,  DEBT,  AND  TAXATION. 


act  to  be  considered  at  the  principal  office  of  the  company  in  this  state. 

Express  companies  and  steamship  and  steamboat  companies  for  the 
transportation  of  passengers  or  freight  are  assessed  by  the  board  of  pub- 
lic works  on  the  basis  of  reports,  similarly  to  railroads.  In  case  of  fail- 
ure to  report  or  to  pay  the  tax  assessed  on  property  or  license  tax  imposed 
by  the  board,  the  property  is  to  be  assessed  under  direction  of  the  audi- 
tor of  public  accounts,  and  a  penalty  of  20  per  cent  is  added  to  the  tax. 

Pullman,  sleeping,  palace,  or  dining  car  companies  and  steam  ferry 
companies  are  similarly  assessed  on  the  proportion  of  the  capital  stock 
invested  and  used  in  the  state. 

Telegraph  and  telephone  companies  are  assessed  on  the  basis  of  re- 
ports to  the  auditor  of  public  accounts  for  line  and  wires  located  in  the 
state  by  the  commissioner  of  the  revenue  of  the  county  or  corporation 
where  the  chief  office  is  located.  Property  is  assessed  where  located. 
A  company  failing  to  make  a  report  is  to  be  assessed  by  rating  each  mile 
of  telegraph  or  telephone  line  at  $125  for  one  wire  and  $25  for  each  addi- 
tional wire  per  mile,  and  by  ascertaining  the  value  of  other  property  as 
that  of  individuals.     There  is  also  a  fine  imposed  of  $500  to  $2,000. 

Oysters  are  assessed  as  personal  property  by  the  inspectors  of  oysters 
annually  on  the  1st  day  of  October. 

The  assessors  are  compensated  at  the  rate  of  $2  per  day,  and  the 
commissioners  of  revenue  by  commissions  and  fees. 

c.  Equalization. — There  is  no  equalization,  strictly 
interpreted,  of  any  part  of  the  assessment.  But  the 
assessors  of  counties  and  cities  meet  for  consultation 
with  a  view  to  equalizing  the  assessment  of  lands  in 
their  respective  counties,  districts,  and  corporations. 

Persons  feeling  themselves  aggrieved  by  any  entry  in 
the  land  book  or  personal  property  book  may,  within 
one  year,  apply  for  relief  to  the  court  in  which  the 
commissioner  gave  bond.  The  attorney  for  the  com- 
monwealth defends  the  application.  The  court  may 
order  the  assessment  corrected  and  the  money  refunded 
or  the  treasurer  restrained  from  collecting. 

Redress  from  erroneous  assessments  of  county  and 
of  local  taxes  is  to  be  had  in  the  county  or  corporation 
court. 

Any  railroad  or  canal  company,  express  or  transportation  company, 
steamship,  steamboat,  or  sleeping  car  company,  or  any  steam  ferry 
company  aggrieved  by  the  assessment  by  the  board  of  public  works 
may  apply  for  redress  to  the  circuit  court  of  the  city  of  Richmond. 
Notice  of  the  application  is  to  be  given  the  board  of  public  works,  and 
the  attorney  for  the  commonwealth  for  the  city  of  Richmond  defends 
the  application. 

2.  Rate— 

The  annual  rate  on  real  estate  is  fixed  by  statute  at  30  cents  on  every 
$100  of  assessed  value  for  the  support  of  the  state  government,  and  10 
cents  for  the  support  of  public  free  schools;  on  tangible  personal  prop- 
erty and  on  choses  in  action,  moneys,  credits  and  capital,  and  toll 
bridges,  turnpikes,  and  ferries  the  rates  are  the  same. 

3.  Collection — 

State,  county,  and  city  taxes  are  collected  by  the 
county  and  city  treasurers. 

Taxes  are  due  and  payable  on  July  1,  and  the  treas- 
urer attends  in  each  magisterial  district  by  appoint- 
ment to  receive  them.  After  December  1 ,  it  is  his  duty 
to  call  for  taxes  that  remain  unpaid  and  to  collect 
them  by  distress  of  goods  and  chattels  or  garnish- 
ment, and  if  there  is  found  no  property  liable  to  dis- 
tress, he  is  to  return  lists  of  delinquent  taxes,  which 
are  then  enforced  bv  sale  of  lands.     The  lien  of  the 


state  on  land  for  taxes  is  paramount  to  that  of  the 
counties,  cities,  and  towns,  and  all  liens  attach  De- 
cember 15  in  the  year  in  which  the  taxes  are  assessed. 

Taxes  on  oysters  are  collected  by  the  oyster  inspectors;  they  are  due 
on  September  1  in  each  year. 

Collection  officers  are  paid  for  their  services  commissions  similar  to 
those  allowed  the  commissioners  of  the  revenue  for  assessing  the  taxes. 

II.  Poll  tax. 

All  male  persons,  white  and  colored,  over  the  age  of 
21  years  pay  a  capitation  tax  of  $1  for  public  free 
school  purposes.     The  tax  is  a  lien  upon  real  estate. 

III.  Inheritance  tax. 

When  any  estate  within  the  state  of  any  decedent 
passes,  by  will  or  descent,  to  any  other  person  than  the 
grandfather,  grandmother,  father,  mother,  husband, 
wife,  brother,  sister,  or  lineal  descendant  of  such  de- 
cedent, the  estate  so  passing  is  subject  to  a  tax  of  5  per 
cent.  Exemptions  are,  all  property  to  be  used  for 
state,  count}',  municipal,  benevolent,  charitable,  edu- 
cational, and  religious  purposes. 

IV.  Corporation  taxes. 

In  addition  to  the  general  property  tax,  railroad  and  canal  companies 
pay  an  income  tax  of  1  per  cent  per  annum,  which  income  is  ascertained 
by  deducting  the  cost  of  operation  from  the  amount  received. 

There  is  also  a  tax  for  expenses  of  the  railroad  commissioner,  not  to 
exceed  $400  per  annum,  to  be  borne  by  the  several  railroad  companies 
operating  in  the  state  according  to  their  gross  income.  This  tax  is  to 
be  apportioned  by  the  auditor  of  public  accounts. 

Pullman,  sleeping,  palace,  or  dining  car  companies  are  taxed  on  their 
capital  stock,  based  on  that  proportion  which  is  invested  and  used  in 
\irginia,  determined  by  the  unit  rule  from  the  cash  value  of  the  shares 
constituting  the  entire  capital  stock.  The  rate  is  30  cents  per  $100  for 
the  state  and  10  cents  for  schools. 

Steamship  companies  and  car  and  transportation  companies,  except 
express,  pay  an  income  tax  of  1  per  cent  per  annum  on  net  earnings  in 
excess  of  $600.  (The  property  is  also  taxed  at  the  regular  property 
rate.) 

Mutual  insurance  companies  transacting  business  in  not  more  than 
four  counties  and  fraternal  orders  are  exempt. 

V.  Business  taxes  and  licenses. 

A  large  number  of  license  taxes  are  levied  annually 
for  state  purposes. 

Merchants  pay  license  taxes  for  the  privilege  of  transacting  business 
in  the  state,  to  be  graduated  by  the  amount  of  purchases  during  the 
period,  reported  under  oath  to  the  commissioner  of  the  revenue. 
Purchases  up  to  $1,000,  $5;  $1,000  to  $2,000,  $10;  $2,000  to  $50,000, 
30  cents  on  $100;  over  $50,000,  10  cents  on  excess  per  $100. 

This  license  tax  is  in  lieu  of  all  taxes  for  state  purposes  on  capital 
actually  employed  in  the  business  as  stock  in  trade. 

The  capital  stock  of  mercantile  corporations  is  not  to  be  taxed  if  the 
license  amounts  to  as  much  as  the  tax  on  capital  stock. 

Railroad  companies  which  sell  mineral  or  forest  products  are  to  be 
taxed  as  other  merchants. 

Privilege  and. license  taxes  on  corporations  (annual) : 

Express  companies,  in  addition  to  the  general  property  tax,  pay  for 
the  privilege  of  doing  business  between  points  within  the  state,  where  the 
mileage  is  200  miles  or  less,  $250;  200  to  1,000  miles,  $1,250;  1,000  to 
1,500  miles,  $2,000;  1,500  miles  or  over,  $2,750. 

Telegraph  companies  pay  a  license  tax  for  the  privilege  of  operating, 
per  mile  of  wire  in  the  state,  $2;  also  2  per  cent  of  gross  earnings  on 
state  business. 


TAXATION  AND  REVENUE  SYSTEMS— VIRGINIA. 


811 


Telephone  companies,  license  tax — 600  phones  or  less,  per  phone,  50 
cents;  600  to  1,000  phones,  per  phone,  75  cents;  1,000  to  2,000  phones, 
per  phone,  $1;  2,000  phones  or  over,  per  phone,  $1.50. 

Building  and  loan  associations — license,  specific  tax,  capital  $25,000, 
$50;  $25,000  to  $50,000,  $75;  $,50,000  to  $100,000,  $100;  $100,000  to 
$150,000,  $125;  $150,000  to  $200,000,  $150;  $200,000  to  $350,000,  $175; 
$100,000,  $2,50  (with  $50  for  each  additional  $100,000). 

Nonresident  companies  pay  upon  capital  invested  in  this  state,  and 
the  shares  are  not  taxable. 

On  companies  doing  business  on  the  purely  mutual  plan,  confining 
their  business  to  the  city  or  county  where  organized,  the  tax  is  $50,  to 
be  levied  only  where  the  principal  office  of  the  company  is  located. 

Insurance  companies,  surety  companies,  and  eveiy  mutual  aid  society, 
mutual  benefit,  guarantee,  accident,  plate  glass,  steam  boiler,  assess- 
ment, security,  marine,  United  Brethren,  live  stock,  travelers'  company, 
and  all  lik»  companies,  in  addition  to  the  general  property  tax,  pay  a 
specific  license  tax  of  $200  for  the  privilege  of  doing  business  in  the  state. 
In  addition  they  are  to  pay  1  per  cent  upon  the  gross  amount  of  all 
assessments,  premiums,  dues,  and  fees  derived  from  business  in  the 
state.  In  the  case  of  assessment  companies  these  taxes  are  in  lieu  of 
all  other  taxes. 

Commission  merchants,  $50;  when  commissions  exceed  $1,000,  $60; 
for  each  $1,000  in  excess  of  $2,000,  $10  extra;  also,  in  addition,  the 
amount  to  lie  paid  by  liquor  merchants  and  stock  brokers,  if  dealing  in 
those  lines. 

The  specific  tax  on  a  live  stock  company  is  $100,  and  there  is  a  forfeit 
of  5  per  cent  for  every  month  in  default. 

Peddlers — on  foot,  $250;  otherwise,  $300;  lightning  rod  peddlers,  $20; 
sale  of  patent  rights,  except  by  the  patentee,  $25.  Agents — land  agents, 
$10  and  one-eighth  of  1  percent  on  amount  of  sales;  if  in  a  town  of  2.000 
to  3,000  inhabitants,  $10  additional;  3,000  to  4,000,  $20;  4,000  to  5,000, 
$30;  over  5,000,  $40  additional;  book  agents,  $10.  Fertilizers,  $20;  less 
than  100  tons,  $10  in  one  county ;  additional  counties,  $5  each ;  but  when 
tax  on  capital  is  $30  there  is  no  license  tax.  Auction  sales — general  auc- 
tioneers, $50  (if  city  of  5,000  inhabitants  or  over,  $2  additional  per  1 ,000 
inhabitants,  but  maximum  is$130;  also  one-fourth  of  1  per  cent  of  sales 
per  year) ;  real  estate  auctioneers,  $50  (if  city  of  5,000  inhabitants  or  over, 
$100;  also  one-fourth  of  1  per  cent,  of  sales ;  for  privilege  of  negotiating 
loans  on  real  estate,  $100  additional) ;  tobacco  auctioneers,  $2,5;  cities  of 
15,000  inhabitants,  $50.  Junk  dealers,  $50;  canvassing  for  junk  dealers, 
$25;  retailers  of  tobacco,  $5;  common  crier,  $5;  ship  brokers,  $50; 
stock  brokers,  $100  (towns  of  5,000  to  10,000  inhabitants,  $1.50  for  each 
office).  Private  bankers— capital  $5,000  or  under,  $50;  over  $5,000  to 
$10,000,  $100;  $10,000  to  $20,000,  $150;  $20,000  to  $30,000,  $150  and 
$5  for  each  $1,000  over  $30,000.  Pawnbrokers,  $250;  commercial  and 
insurance  brokers,  $100.  Coupon  brokers,  $500;  $1,000  in  counties,  cities, 
and  towns  over  10,000  inhabitants;  also  20  per  cent  on  the  face  value 
of  all  coupons  sold  (tax-receivable  coupons  from  bonds  of  state  of  Vir- 
ginia). Private  entertainment  house,  $.5  (also  5  per  cent  on  the  annual 
rent  over$100) ;  boarding  house,  $5  (also  1  per  cent  on  the  annual  rent  over 
$100);  eating  house,  $25;  rental  value  per  annum  is  $100  to  $1,000,  3  per 
cent  additional  ;$1, 000  to$2,000,, 5  per  cent  additional.  Bowling  saloons, 
$25,  and  $10  for  each  alley  over  one;  billiard  saloons,  $50,  and$25forta_ 
bles  over  one;  bagatelle  saloon  $10,  and  $.5  for  tables  over  one;  thcatersi 
each  performance,  $3 :  by  week,  $10;  shows,  circuses,  and  menageries,  per 
day,  $20;  in  cities  of  1,000  to  10,000  inhabitants,  $100,  also  5  per  cent  on 
the  gross  receipts  in  addition  to  the  specific  tax;  merry-go-rounds,  $10; 
public  rooms,  $20;  skating  rinks,  $5  to  $10  per  quarter.  Attorneys-at- 
law — licensed  less  than  five  years,  $15;  licensed  over  five  years, $25  (pro- 
vided that  no  attorney  whose  receipts  are  less  than  $500  per  annum  need 
pay  over$15).  Special  license  to  sue  the  state  or  its  officers  for  recovery  of 
money  for  coupons  tendered  as  taxes,  $2.50.  Physicians,  surgeons,  and 
dentists — licensed  for  less  than  five  years,  $10;  licensed  for  over  five 
years,  $15;  in  cities  over  .5,000  inhabitants,  $2,5,  provided  that  when  re- 
ceipts are  less  than  $500  per  annum  license  tax  is  $10.  Daguerrean  and 
photograph  artists  and  their  agents,  $10;  cities  2,000  to  10,000  inhabit- 
ants, $30;  10,000  to  20,000,  $40;  over  20,000,  $.50;  for  each  additional 
county,  $5.  Stallions  and  jackasses  for  letting  to  mares, $10;  agents  for 
renting  houses,  $30;  in  towns  less  than  2,000  inhabitants,  $10.   Labor 


agents,  $25.  Storage  and  impounding  house,  $25;  city  of  5,000  inhabit- 
ants or  over,  $50.  Yards  and  wagon  yards,  $10  (only  in  cases  where  com- 
pensation of  owner  is  more  than  $50  per  year) :  livery  stables,  $15;  cities 
over  2,000  inhabitants,  $25,  and  50  cents  for  every  stall  therein;  hack 
drivers,  $10;  baggage\vagon,  $5  for  each  conveyance.  Sewing  machine 
agents,  $200  to  manufacturers;  canvassers,  $20;  machine  agents,  $15, 
and  $10  in  other  counties.  Liquor  license — wholesale  of  all  kinds,  $350; 
malt  liquors  only,  $150;  retail  of  all  kinds — population  1,000  or  less,  $75; 
over  1,000,  $125;  malt  liquors  only,  in  towns  less  than  5,000,  $30;  privi- 
lege of  keeping  a  barroom — population  less  than  1,000,  $75,  and  also  15 
per  cent  of  the  rental  value  of  the  rooms  used ;  population  1 ,000  and  over, 
$125  and  15  per  cent  on  the  rental.  Restaurants,  towns  of  2,000  or  less, 
$75;  over  2,000,  $125  (also  8  percent  of  the  rental  value  of  the  house  and 
furniture  up  to  $1 ,000  of  such  annual  value;  $1,000  to  $2,000,  .5  per  cent 
on  the  excess;  above  $2,000,  3  per  cent) ;  inns,  same  as  for  restaurants. 
Holders  of  one  class  of  liquor  or  restaurant  license  may  obtain  the  others 
by  payment  of  one-half  of  the  specific  sum  required.  Malt  liquor  saloon, 
county  or  towns  less  than  1,000,  $40;  sample  liquor  merchants,  $350; 
cities  over  1,000,  $60  (above  amounts  in  lieu  of  all  taxes  upon  capital 
actually  employed,  except  manufacturers,  distillers,  and  rectifiers) ;  rec- 
tifiers (not  manufacturers) ,  $150.  Druggists  pay  as  retail  liquor  dealers. 
Manufacturers  who  mash  and  distill — 10  bushels  or  less  per  day,  $30;  10 
to  20  bushels  per  day,  $50 ;  20  to  30  bushels  per  day ,  $75 ;  30  to  45  bushels 
per  day,  $125;  45  to  75  bushels  per  day,  $200;  75  to  100  bushels  per  day, 
$250;  100  to  150  bushels  per  day,  $300;  150  to  200  bushels  per  day,  $400; 
200  to  250  bushels  per  day,  $450;  2.50  to  300  bushels  per  day,  $500;  on 
each  100  bushels  per  day  in  excess  of  300,  $200  per  100  bushels  per  day 
(manufacturer  may  sell  at  the  factory  without  further  license).  Distill- 
ers of  brandy — over  40  gallons  and  distillery  run  only  three  months, 
$10;  three  to  six  months,  $20;  over  six  months,  $50.  Breweries,  $50. 
Dogs — commissioner  of  the  revenue  may  license  dogs,  which  will 
then  be  deemed  personal  property,  one  dog,  $1 ;  for  each  additional 
dog,  50  cents;  special  taxes  on  dogs  may  be  imposed  by  cities  and 
counties.  Dealers  in  cast-ofT  clothing  in  Accomac  and  Northampton 
counties,  per  annum,  $25;  dealers  in  pistols  and  cartridges  in  Accomac 
and  Northampton  counties,  per  annum,  $10.  Slot  machines,  each,  per 
annum,  $2.50. 

VI.  Income  tax. 

Incomes  in  excess  of  $600,  whether  received  or 
merely  due  within  the  year  preceding  the  1st  of  Feb- 
ruary, are  to  be  ascertained  by  the  commissioner  of  the 
revenue.  "Income"  includes  all  rents,  salaries,  inter- 
est upon  notes,  stocks,  bonds,  or  other  securities  not 
otherwise  taxed,  of  the  United  States  or  any  other 
state,  corporation,  firm,  or  individual,  less  the  interest 
due  and  paid  by  the  owner  during  the  year;  the  amount 
of  all  premiums  on  gold,  silver,  or  coupons;  the  amount 
of  sales  of  live  stock  and  meat  of  all  kinds,  less  the 
value  thereof  at  the  time  of  the  assessment  of  the 
same;  provided,  the  said  value  has  heretofore  been 
taxed  as  capital;  the  amount  of  sales  of  wood,  butter, 
cheese,  hay,  tobacco,  grain,  or  other  vegetable,  agri- 
cultural, or  other  production  grown  or  produced  by 
said  person;  provided,  that  the  amount  derived  by 
the  producer  from  the  sale  of  any  agricultural  produc- 
tion during  the  preceding  year,  whether  the  same  was 
grown  or  produced  during  the  preceding  year  or  not,  is 
to  be  assessed  and  taxed  as  income ;  all  other  gains  and 
profits  derived  from  any  source  whatsoever,  and  the 
shares  of  the  gains  and  profits  of  all  companies,  whether 
incorporated  or  partnership,  of  any  person  who  would 
be  entitled  to  the  same  if  divided,  whether  said  profits 
have  been  divided  or  not. 


812 


WEALTH,  DEBT,  AND  TAXATION. 


Deductions  from  income,  in  addition  to  the  sum  of 
$600,  are :  All  losses  sustained  during  the  year ;  all  losses 
incurred  in  trade;  all  sums  actually  paid  for  labor, 
ditches,  fences,  taxes,  and  rents;  all  fertilizers,  and  all 
clover  or  other  seed  purchased  and  used  by  any  per- 
son who  cultivates  land,  except  sums  paid  out  for 
improvements,  new  buildings,  and  betterments  made 
to  increase  the  value  of  property  or  estate;  and  pro- 
vided further,  that  only  one  deduction  of  $600  is  to 
be  made  from  the  aggregate  income  of  any  family, 
except  that  guardians  may  make  a  separate  deduction 
of  $600  in  favor  of  each  ward  out  of  the  income  coming 
to  said  ward. 

This  tax  is  at  the  rate  of  1  per  cent,  and  is  collected 
as  the  general  property  tax,  except  that  the  tax  on 
salaries  of  officers  of  the  state,  payable  at  the  treasury, 
is  collected  at  the  time  that  the  salary  is  audited  and 
paid. 

VII.  Tax  on  wills  and  administrations. 

The  probate  of  every  will  or  grant  of  administration, 
where  the  legal  situs  of  estate  for  taxation  is  in  the 
state,  of  estates  of  $1,000  or  less,  is  taxed  $1;  every 
additional  $100,  10  cents  additional. 

VIII.  Tax  on  deeds  and  contracts. 

On  every  recorded  deed,  and  every  contract  relating 
to  real  estate  and  personal  property,  recorded,  50  cents; 
consideration  or  value  of  property  $300  to  $1,000,  $1; 
over  $1,000,  per  $100,  10  cents  additional.  Deed  of 
release,  50  cents.  Deeds  of  trust  and  mortgage  are 
taxed  on  the  amount  of  the  obligation  secured;  rail- 
road mortgages  and  those  of  other  internal  improve- 
ment companies  are  taxed  upon  such  proportion  of 
the  consideration  as  the  portion  of  the  line,  property, 
and  works  of  such  company  in  this  state  bears  to  the 
whole  property  conveyed  by  deed.  Deeds  of  parti- 
tion, 50  cents. 

IX.  Tax  on  suits. 

Upon  any  original  suit,  except  a  suit  in  chancery, 
in  a  circuit  or  corporation  court,  or  removed  thereto 
from  the  justice's  court,  where  amount  does  not  ex- 
ceed $500,  there  is  a  tax  of  $1 ;  when  debt  or  demand 
for  damages  exceeds  $500,  the  additional  tax  per  $100 
is  10  cents. 

Upon  every  appeal,  writ  of  error,  or  supersedeas 
in  a  circuit  court  there  shall  be  a  tax  of  $3;  in  the 
supreme  court  of  appeals  the  tax  is  $6;  and  the  non- 
payment of  these  taxes  for  thirty  days  from  granting 
the  appeal  is  cause  for  dismissal. 

Upon  every  chancery  suit  originating  in  a  corpora- 
tion or  circuit  court  the  tax  is  $1.50. 

Upon  every  writ  of  mandamus  the  tax  is  $3. 

The  payment  of  these  taxes  is  a  condition  precedent 
to  the  issuing  of  any  writ  or  docket,  recording  deeds 
or  wills,  or  to  granting  letters  of  administration.  The 
clerks  receive  a  commission  of  5  per  cent  for  collection. 


B.  FEES. 

(See  Taxes:  VII,  VIII,  and  IX,  above.) 

Secretary  of  the  commonwealth. — Issuing  charter  of  corporation,  $1; 
tax  on  seals — seal  of  state,  $2;  seal  of  courts  and  notaries,  $1.  There 
are  also  small  fees  for  filing  papers,  copies  thereof,  etc. 

By  the  act  of  April  16, 1903,  corporations  must  pay: 

(!)  Fees  on  charters — (a)  Domestic  or  foreign  corporations  operat- 
ing a  public  service  line  or  road  of  any  kind  are  required  to  pay  a  fee  on 
the  granting  or  the  extension  of  the  charter,  or  obtaining  a  license  to  do 
business  in  the  state,  according  to  capital,  graduated  from  $25  on  $5,000 
up  to  $5,000  on  $90,000,000:  (b)  all  other  corporations  pay  a  fee  of 
$10  on  $50,000,  with  an  additional  fee  of  20  cents  for  each  $1 ,000  in  excess 
of  $50,000. 

(2)  Fees  for  registration — An  annual  fee,  domestic  and  foreign,  grad- 
uated according  to  capital  of  $5  on  $15,000  up. 

(3)  Annual  state  franchise  tax — In  addition  to  charter  fees,  taxes  on 
property,  income,  and  receipts  and  registration,  every  corporation 
must  pay  a  fee  of  from  $10  to  $200,  according  to  capital. 

County  Revenues. 


A.    TAXES. 

I.  The  general  property  tax. 

1.  Base — 

The  property  included  and  the  assessment  and 
equalization  are  the  same  for  county  as  for  state 
purposes. 

2.  Rate— 

The  rate  is  fixed  by  the  board  of  supervisors ;  but  for 
roads  it  is  not  to  exceed  15  cents  upon  every  $100,  nor 
for  schools  10  cents. 

3.  Collection — 

In  the  same  manner  as  for  state  taxes. 

II.  Poll  tax. 

The  board  of  supervisors  of  the  county  may  levy  a 
capitation  tax  not  to  exceed  50  cents  on  all  male  per- 
sons over  21  years  of  age. 

III.  IV,  and  V.   Inheritance  tax,  corporation  taxes,  and 
business  taxes  and  licenses. 

There  are  no  such  taxes  or  licenses  for  county  pur- 
poses. 

Municipal  Revenues. 

a.   TAXES. 

I.  The  general  property  tax. 

1.  Base — 

The  property  included  and  the  assessment  are  the 
same  for  municipal  as  for  state  taxation.  Manufactur- 
ing establishments  are,  however,  sometimes  exempted 
for  a  period  of  years  from  municipal  taxes. 

2.  Bate—. 

The  council  levies  so  much  as  is,  in  its  opinion,  neces- 
sary to  meet  all  sums  chargeable  to  the  town  or  city. 

3.  Collection — 
Same  as  for  state  taxes. 


TAXATION  AND  REVENUE  SYSTEMS— WASHINGTON. 


813 


II.  Poll  tax. 

The  council  may  levy  poll  taxes  on  all  male  persona 
over  21  years  of  age. 
Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

No  such  taxes  are  used  by  the  municipalities. 
V.   Business  taxes  and  licenses. 

In  addition  to  the  state  tax  on  businesses,  the  council 
of  any  city  or  town  may  require  a  local  license  and 
impose  a  tax.  They  may  also  tax  the  privilege  of 
keeping  for  hire  any  wheeled  carriage. 

School  Revenues. 

The  schools  are  administered  according  to  school  dis- 
tricts, which  are  subdivisions  of  the  cities  and  counties. 

State  school  funds. — The  state  funds  applicable  to 
public  free  school  purposes  are  apportioned  to  the  coun- 
ties and  cities  of  the  state  separately.     These  funds 


embrace  the  annual  interest  on  the  literary  fund,  con- 
sisting of  the  proceeds  of  the  sale  of  public  lands 
donated  by  Congress,  escheated  property,  fines,  etc., 
the  capitation  tax  not  exceeding  $1  on  every  male  citi- 
zen over  21  years  of  age,  and  a  tax  of  10  cents  on  $100 
of  assessed  valuation  of  propert}'.  These  taxes  are 
kept  separate  from  other  state  revenue. 

County  school  levy. — The  board  of  supervisors  levies 
upon  property  in  the  county  for  county  school  pur- 
poses a  tax  of  not  to  exceed  10  cents  on  the  dollar  of 
valuation. 

District  school  levy, — The  board  of  supervisors  of 
the  county  levies  a  tax  for  district  school  purposes  not 
to  exceed  10  cents  on  $100  of  assessed  value  therein. 

Municipal  levies. — The  council  may  raise,  by  prop- 
erty and  capitation  taxes,  which  are  not  to  exceed  3 
mills  on  the  dollar  nor  50  cents  per  poll,  moneys  for  the 
support  of  public  schools  within  the  municipality. 


WASHINGTON.1 


Washington  depends  almost  entirely  upon  the  gen- 
eral property  tax  for  state,  county,  and  municipal  reve- 
nues. There  are,  however,  poll  taxes,  levied  in  dis- 
tricts for  streets  and  roads,  and  an  inheritance  on  both 
lineal  and  collateral  transfers.  No  special  corporation 
taxes  are  levied,  except  a  small  one  on  franchises  and 
one  on  insurance  premiums. 

CONSTITUTIONAL    PROVISIONS. 

ARTICLE    VII. 

Sec.  1.  All  property  in  the  state,  not  exempt  under  the  laws  of  the 
United  States,  or  under  this  constitution,  shall  be  taxed  in  proportion  to 
its  value,  to  be  ascertained  as  provided  by  law.  The  legislature  shall 
provide  by  law  foran  annual  tax  sufficient,  with  other  sources  of  revenue, 
to  defray  the  estimated  ordinary  expenses  of  the  state  for  each  fiscal 
year.  And  for  the  purpose  of  paying  the  state  debt,  if  there  be  any,  the 
legislature  shall  provide  for  levying  a  tax  annually  sufficient  to  pay  the 
annual  interest  and  principal  of  such  debt  within  twenty  years  from  the 
final  passage  of  the  law  creating  the  debt. 

Sec.  2.  The  legislature  shall  provide  by  law  a  uniform  and  equal  rate 
of  assessment  and  taxation  on  all  property  in  the  state,  according  to  its 
value  in  money,  and  shall  prescribe  such  regulations  by  general  law  as 
shall  secure  a  just  valuation  for  taxation  of  all  property,  so  that  every 
person  and  corporation  shall  pay  a  tax  in  proportion  to  the  value  of  his, 
her,  or  its  property:  Provided,  That  a  deduction  of  debts  from  credits 
may  be  authorized:  Provided,  further,  That  the  property  of  the  United 
States,  and  of  the  state,  counties,  school  districts,  and  other  municipal 
corporal  ions,  and  such  other  property  as  the  legislature  may  by  general 
laws  provide,  shall  be  exempt  from  taxation :  ( And  provided,  further,  That 
the  legislature  shall  have  power,  by  appropriate  legislation,  to  exempt 
personal  property  to  the  amount  of  three  hundred  dollars  ($300.00)  for. 
each  head  of  a  family  liable  to  assessment  and  taxation  under  the  pro- 
visions of  the  laws  of  this  state  of  which  the  individual  is  the  actual  and 
bona  lide  owner  as  amended  in  1902.) 


Sec.  3.  The  legislature  shall  provide  by  general  law  for  the  assessing 
and  levying  of  taxes  on  all  corporation  property  as  near  as  may  be  by  the 
same  methods  as  are  provided  for  the  assessing  and  levying  of  taxes  on 
individual  property. 

Sec.  4.  The  power  to  tax  corporations  and  corporate  property  shall 
not  be  surrendered  or  suspended  by  any  contract  or  grant  to  which  the 
state  shall  be  a  party. 

Sec.  5.  No  tax  shall  lie  levied  except  in  pursuance  of  law;  and  every 
law  imposing  a  tax  shall  state  distinctly  the  object  of  the  same,  to  which 
only  it  shall  be  applied. 

Sec  6.  All  taxes  levied  and  collected  for  state  purposes  shall  be  paid 
in  money  only  into  the  state  treasury. 

Sec.  7.  An  accurate  statement  of  the  receipts  and  expenditures  of 
the  public  moneys  shall  be  published  annually  in  such  manner  as  the 
legislature  may  provide. 

Sec  8.  Whenever  the  expenses  of  any  fiscal  year  shall  exceed  the 
income,  the  legislature  may  provide  for  levying  a  tax  for  the  ensuing 
fiscal  year,  sufficient,  with  other  sources  of  income,  to  pay  the  deficiency, 
as  well  as  the  estimated  expenses  of  the  ensuing  fiscal  year. 

Sec  9.  The  legislature  may  vest  the  corporate  authorities  of  cities, 
towns,  and  villages  with  power  to  make  local  improvements  by  special 
assessment,  or  by  special  taxation  of  property  benefited.  For  all  cor- 
porate purposes,  all  municipal  corporations  may  be  vested  with  author- 
ity to  assess  and  collect  taxes,  and  such  taxes  shall  be  uniform  in  respect 
to  persons  and  property  within  the  jurisdiction  of  the  body  levying  the 
same. 


ARTICLE    XI. 


1  This  compilation  is  derived  mainly  from  Pierce's  Code,  a  compilation 
of  all  the  laws  in  force  in  the  state  of  Washington,  including  the  regular 
and  extraordinary  session  of  1901;  compiled  by  Frank  Pierce:  Seattle 
Wash.,  1902. 


Sec  9.  No  county,  nor  the  inhabitants  thereof,  nor  the  property 
therein,  shall  be  released  or  discharged  from  its  or  their  proportionate 
share  of  taxes  to  be  levied  for  state  purposes,  nor  shall  commutation 
for  such  taxes  be  authorized  in  any  form  whatever. 

Sec.  12.  The  legislature  shall  have  no  power  to  impose  taxes  upon 
counties,  cities,  towns,  or  other  municipal  corporations,  or  upon  the 
inhabitants  or  property  thereof,  for  county,  city,  town,  or  other  municipal 
purposes,  but  may,  by  general  laws,  vest  in  the  corporate  authorities 
thereof  the  power  to  assess  and  collect  taxes  for  such  purposes. 

ARTICLE    II. 

Sec  28.  (This  section  prohibits  the  legislature  from  enacting  any 
special  or  private  laws  for  assessment  or  collection  of  taxes  or  for  extend- 
ing the  time  for  collection  thereof.) 


814 


WEALTH,  DEBT,  AND  TAXATION. 


ARTICLE   XXVI. 

(This  article  provides  that  lands  belonging  to  citizens  of  the  United 
States  residing  without  the  limits  of  the  state  shall  never  be  taxed  at  a 
higher  rate  than  the  lands  belonging  to  residents  thereof,  and  that  In- 
dians owning  lands  in  severalty  are  to  be  taxed,  unless  their  land  is 
exempted  by  grant.) 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  The  county  assessor,  elected  for  two  years. 

(2)  The  county  treasurer,  elected  for  two  years. 

(3)  County  board  of  equalization,  composed  of  the  three  county  com- 
missioners, elected  biennially. 

(4)  State  board  of  equalization,  composed  of  the  secretary  of  state, 
the  commissioner  of  public  lands,  and  the  auditor  of  state.  (Since  1905 
also  the  three  members  of  state  tax  commission.) 

(5)  City  assessors  and  collectors,  elected  for  one  year.  (In  cities  of 
the  second  class  only.)' 

(6)  An  advisory  state  tax  commission  of  three  members  (created  by 
legislature  in  1905). 

State  Revenues. 

a.   TAXES. 

I.    The  general  property  tax. 
1.  Base — 

a.  The  property  included  and  exempt. — All  property 
now  existing,  or  that  is  created  or  brought  into  the 
state,  is  subject  to  taxation,  except  as  expressly  ex- 
empted. 

(1)  "Realty, "  for  the  purposes  of  taxation,  includes  the  land  and  all 
structures  and  fixtures  thereon,  and  rights  and  privileges  appertaining 
thereto. 

(2)  "  Personalty, "  for  the  purposes  of  taxation,  includes  all  goods, 
chattels,  moneys,  stocks;  all  improvements  upon  lands  the  fee  of  which 
is  still  in  the  state  or  the  United  States,  or  in  any  railroad  company ; 
credits,  whether  secured  or  not,  but  subject  to  deductions  of  debts. 

Gas  and  water  mains  laid  in  roads,  streets,  and  alleys  shall  be  held 
to  be  personal  property. 

Ships  registered  in  any  United  States  custom-house  in  the  state,  used 
in  trade  with  other  states  and  counties,  are  not  deemed  property  within 
the  state  nor  subject  to  taxation. 

(3)  Exemptions,  in  addition  to  public  property,  are:  Cemeteries; 
churches  whose  seats  are  free;  free  public  libraries;  charitable  and 
benevolent  institutions;  ships  in  construction  and  materials  thereof; 
personal  property  of  heads  of  families  up  to  $300 ;  fire  engines,  imple- 
ments, and  buildings  of  fire  companies;  fruit  trees,  not  nursery  stock,  for 
four  years  after  being  transplanted  in  orchard  form. 

b.  Assessment. — In  general,  there  is  but  one  com- 
plete assessment  roll  for  state,  county,  and  municipal 
taxes,  the  county  being  the  unit,  and  the  assessment  is 
made  with  reference  to  March  1. 

Real  property  is  assessed  biennially  in  the  even-num- 
bered years,  the  list  and  valuation  being  made  by  the 
assessor,  but  corrections  are  made  annually.  Per- 
sonalty is  assessed  annually  on  the  basis  of  a  detailed 
list  made  by  the  taxpayer  under  oath.  The  assessor, 
however,  fixes  the  "true  and  fair"  value,  which  is  that 
which  the  property  would  bring  at  private  sale.  The 
penalty  for  failure  to  furnish  a  list  or  for  a  false  list  is 
$10  to  $2,000. 


The  real  and  personal  property  of  corporations  are  by  the  constitu- 
tion to  be  assessed  as  that  of  individuals. 

There  is  no  assessment  or  apportionment  of  railroad  property  by 
state  authorities,  but  the  assessment  is  made  by  local  assessors  of  railroad 
track  and  rolling  stock  in  the  counties  in  the  proportion  that  the  main 
track  in  the  county  bears  to  the  whole,  length  in  the  state. 

Bank  stock  is  assessed  to  the  owners  in  the  town  where  the  bank  is 
located,  whether  the  owner  is  there  resident  or  not,  a  proportionate 
part  of  the  value  of  real  estate  of  the  bank  being  deducted.  The  bank 
is  made  responsible  for  payment  of  the  taxes. 

Itinerant  merchants  are  requirea  to  notify  the  county  assessor,  and 
to  pay  a  tax  assessed  at  the  rate  assessed  for  state,  county,  and  local 
purposes  upon  their  stock  in  trade. 

c.  Equalization. — The  county  board  of  equalization 
equalizes  between  individuals  and  corrects  the  county 
roll,  and  it  may  adjust  the  valuation  of  a  class  or  classes 
of  property. 

The  state  board  of  equalization  equalizes  between 
counties  according  to  classes  of  property  to  ascertain 
the  just  proportion  due  for  state  purposes  from  the 
several  counties. 

2.  Rate— 

The  state  board  of  equalization  apportions  the 
amount  of  tax  for  state  purposes  among  the  several 
counties  in  proportion  to  the  valuation  as  equalized  by 
the  board.  It  is  the  duty  of  the  county  auditor  to  fix 
the  rates  necessary  to  raise  the  amount  so  apportioned 
and  to  place  the  same  on  the  tax  rolls  of  the  county. 
The  maximum  tax  for  state  purposes  is  3  mills  on  the 
dollar  of  the  property  valuation  of  the  entire  state. 

3.  Collection — 

In  general,  all  taxes  for  state,  county,  municipal, 
school,  road,  and  other  purposes  are  extended  upon 
the  tax  books  of  the  county,  and  the  county  treasurer 
is  the  receiver  and  collector.  Taxes  on  real  estate  are 
a  lien  on  the  property  from  the  assessment  day,  March 

I.  and  are  due  May  31,  after  which  date  they  become 
delinquent  and  15  per  cent  interest  is  charged.  If, 
however,  they  are  paid  before  March  15  a  rebate  of  3 
per  cent  is  allowed,  or,  if  one-half  is  paid  before  May 
31,  the  rest  may  go  over  until  November  30. 

Taxes  on  personal  property  are  a  lien,  on  all  real  and 
personal  property,  after  the  first  Monday  in  February, 
the  day  on  which  they  become  due.  If  they  are  not 
paid  within  30  days  after  notice,  the  county  treasurer 
may  distrain  the  goods  and  chattels. 

II.  Poll  tax. 

There  is  no  state  poll  tax. 

III.  Inheritance  tax. 

All  property  within  the  jurisdiction  of  the  state, 
whether  belonging  to  inhabitants  or  not,  passing  by 
transfer  which  takes  effect  at  death,  is  subject  to  this 
tax  at  the  following  rates: 

(1)  On  all  sums  above  the  first  $10,000,  where  the  same  passes  to  the 
father,  mother,  husband,  wife,  lineal  descendant,  adopted  child  or  his 
lineal  descendant,  1  per  cent. 

(2)  On  all  sums  not  exceeding  the  first  $50,000  which  passes  to  col- 
lateral heirs  to  and  including  the  third  degree  of  relationship,  3  per  cent, 
and  to  collateral  heirs  beyond  the  third  degree  or  to  strangers  to  the 
blood,  6  per  cent. 


TAXATION  AND  REVENUE  SYSTEMS— WASHINGTON. 


815 


(3)  On  all  sums  above  the  first  $50,000,  and  not  exceeding  $100,000, 
to  collateral  heirs  of  the  third  degree,  4J  per  cent;  to  collateral  heirs 
beyond  the  third  degree  and  strangers  to  the  blood,  9  per  cent. 

(4)  On  all  sums  in  excess  of  the  first  $100,000  to  collateral  heirs  of  the 
third  degree,  6  per  cent;  to  collateral  heirs  beyond  the  third  degree  and 
strangers  to  the  blood,  12  per  cent. 

IX.   Corporation  taxes. 

On  domestic  and  foreign  corporations  having  capital 
stock  there  is  an  annual  franchise  tax  in  the  form  of  a 
license  fee  of  $10.  This  tax  does  not  apply  to  corpora- 
tions not  for  pecuniary  profit,  nor  to  such  insurance 
companies  as  pay  an  annual  license.  Other  than  the 
general  property  tax, 'there  are  no  corporation  taxes, 
except  on  insurance  companies.  Insurance  com- 
panies are  charged  $10  annually  for  a  certificate  of 
authority,  and  in  addition  must  pay  a  premium  tax  of 
2  per  cent  on  the  excess  of  premiums  collected  over 
losses  paid  in  the  state. 
V.  Business  taxes  and  licenses. 

Insurance  agent — fire,  per  annum,  $2;  marine,  per  annum,  50  cents; 
commission  merchant,  per  annum,  $5.  Fisherman's  license — seines, 
traps,  wheels,  monthly,  $2.50  to  $50;  packer's  license,  per  season,  $100 
to  $1,000  (new  canneries  pay  a  license  of  $250  until  their  pack  is  defi- 
nitely known);  packers  and  dealers,  annual  fee,  $2.50;  hunters,  resi- 
dents, $1;  hunters,  nonresidents,  $10;  milk  wagons,  per  annum,  $1; 
sale  of  milk  at  a  stand,  per  annum,  $1 ;  peddlers  of  medicines,  per  month, 
$1  to  $25;  pilots,  issue  of  license,  per  annum,  $5  (and  5  per  cent  on  his 
charges);  owners  of  coal  mines,  4  mills  per  ton  sold  or  used. 

Licenses  for  selling  intoxicating  liquors  at  retail  are  issued  by  the 
mayor  and  common  council  of  cities  and  incorporated  towns,  and  by 
county  commissioners  for  territory  outside  of  the  limits  of  incorporated 
towns.  The  license  fee  can  not  be  less  than  $300  nor  more  than  $1,000 
annually.  Ten  per  cent  of  all  licenses  are  paid  to  the  state.  The  bal- 
ance of  city  licenses  is  paid  to  the  general  city  treasury.  Of  county 
license  receipts,  35  per  cent  goes  to  the  county  school  fund  and  55  per 
cent  to  the  general  county  fund. 

B.  FEES. 

By  secretary  of  state. — Filing  articles  of  incorporation  of  foreign  and 
domestic  corporations,  $10;  supplemental  articles,  $10;  medicine,  prac- 
tice, examination  fee,  $50;  dentistry,  practice,  examination  fee,  $25. 

By  commissioner  of  insurance. — Filing  articles  of  incorporation,  $25; 
issuing  certificate  of  authority  annually,  $10;  filing  annual  statement, 
$10:  agent's  license,  $2. 

County  Revenues. 

a.   TAXES. 

I.    The  general  property  tax. 

1.  Base — 

The  property  included  and  the  assessment  and 
equalization  are  the  same  for  the  county  taxes  as  for 
the  state. 

2.  Rate— 

The  county  taxes  are  levied  by  the  county  commis- 
sioners. The  tax  for  the  payment  of  county  indebted- 
ness is  not  to  exceed  5  mills  on  the  dollar;  that  for  cur- 
rent expense,  8  mills;  the  school  tax,  8  mills;  the  road 
tax,  5  mills;  the  bridge  tax,  3  mills.     All  taxes  are  com- 


puted at  the  aggregate  rate  per  cent  under  the  head  of 
consolidated  tax,  and  the  county  treasurer  distributes  to 
the  different  funds  pro  rata  after  collection. 
3.   Collection — 

Collection  of  county  taxes  is  made  by  the  county 
treasurer,  as  are  state  and  township  taxes. 
II,  III,  and  IV.  Poll  tax,  inheritance  tax,  and  corpora- 
tion taxes. 

The  counties  levy  no  poll,  inheritance,  or  special  cor- 
poration taxes.      (See  municipal  poll  tax,  page  816.) 
V.  Business  taxes  and  licenses  (annual). 

Hawkers  of  goods,  per  annum  (limit), $25;  billiard  tables  and  bowling 
alleys  (limit),  $25;  ferries  (limit),  $1  to$100.  Liquors — wholesale,  quan- 
tities over  1  gallon,  $100:  grocery,  to  sell  l>eer,  $100;  saloons  (at  discre- 
tion), $300  to  $1,000.     Cigarettes— retail,  $10;  wholesale,  $25. 

(See  also  state  revenue,  with  reference  to  licenses  to  retail  intoxicating 
liquors  (saloons).) 

Municipal  Revenues. 

The  divisions  of  local  government  are :  Cities  of  four 
classes — (1)  those  having  over  20,000  inhabitants,  (2) 
10,000  to  20,000  inhabitants,  (3)  1,500  to  10,000  in- 
habitants, (4)  300  to  1,500  inhabitants;  townships, 
where  such  organization  is  adopted  by  the  county,  em- 
bracing that  portion  of  the  county  outside  of  incor- 
porated cities  and  towns;  school  districts;  and  road 
districts. 

a.  taxes. 

I.    The  general  property  tax. 

1.  Base — 

The  property  included  and  the  methods  of  assess- 
ment are,  in  general,  the  same  as  for  state  taxes,  with 
certain  local  peculiarities  in  procedure.  In  cities  of  the 
first  class  that  portion  of  the  county  assessment  roll  em- 
bracing persons  and  property  subject  to  taxation  in  the 
city  constitutes  also  the  roll  for  the  city.  Cities  of  the 
second,  third,  and  fourth  classes  may  have  independent 
rolls  made  by  city  assessors  to  conform,  as  nearly  as 
possible,  to  the  county  roll.  The  township  assessor 
performs  the  same  duties  as  the  county  assessor. 

The  cities  appoint  committees  of  their  city  councils 
to  equalize  or  assist  the  county  board  in  equalization. 

2.  Rate- 
In  cities  the  city  council  fixes  the  rate  for  municipal 

revenues,  with  various  restrictions ;  in  cities  other  than 
of  the  first  class  the  maximum  rate  is  10  mills. 

In  townships  taxes  are  levied  by  the  electors  in  town 
meetings,  subject  to  certain  restrictions. 

In  road  districts  the  electors  may  levy,  by  vote,  a  tax 
of  from  1  to  1 0  mills  on  the  dollar. 

3.  Collection — 

Collection  is,  in  general,  the  same  as  for  state  and 
county  taxes.  In  cities  of  the  first,  third,  and  fourth 
classes  the  county  treasurer  is  ex  officio  collector  of  the 
city  taxes.     Cities  of  the  second  class  have  their  own 


816 


WEALTH,  DEBT,  AND  TAXATION. 


collectors.     Delinquent  taxes  are  enforced  by  the  same 
procedure  as  delinquent  county  and  state  taxes. 
Road  district  taxes  may  be  paid  in  labor. 

II.  Poll  tax. 

Every  male  person  over  21  and  under  50  years  of  age 
residing  outside  the  limits  of  an  incorporated  city  or 
town  for  six  months  or  more  is  required  to  pay,  by 
March  1  in  each  year,  a  road  poll  tax  of  $2.  In  prac- 
tice, this  is  a  county  poll  tax,  receipts  therefrom  being 
included  with  those  of  the  county. 

Cities  and  towns  may  levy  an  annual  street  poll  tax 
not  exceeding  $2  in  cities  of  the  third  class,  or  $4  in  cities 
of  the  fourth  class.     These  taxes  are  payable  in  labor  in 
lieu  of  money. 
Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There  are  no  inheritance  or  special  corporation  taxes 
for  municipalities. 

V.  Business  taxes  and  licenses. 

The  city  councils  of  cities  and  towns  may  license, 
for  purposes  of  regulation  and  revenue,  all  and  every 


kind   of  business,   including  the  sale  of  intoxicating 
liquors. 

Dog  license,  per  annum,  not  to  exceed  $2;  liquor  licenses,  per  annum, 
$300  to  $1,000  (10  per  cent  must  be  paid  to  the  state);  billiard  tables, 
not  to  exceed  $25  each. 

School  Revenues. 

The  constitution  prescribes  a  permanent  school 
fund,  derived  from  various  sources,  the  income  of 
which  is  to  be  applied  to  the  current  use  of  the  common 
schools.  Among  them  is  35  per  cent  of  the  county 
liquor  licenses. 

A  state  tax  is  to  be  levied  by  the  state  board  of 
equalization,  which,  with  the  income  from  the  perma- 
nent fund,  is  to  make  up  $10  for  each  child  of  school 
age;  but  the  tax  is  not  to  exceed  5  mills  on  the  dollar. 
The  counties  levy  a  school  tax  of  8  mills. 

A  district  school  tax  ma}*  be  levied  by  the  board  of 
directors  of  the  district,  not  to  exceed  10  mills  on  the 
dollar.  No  tax  exceeding  5  mills  can  be  levied  without 
a  vote  of  the  electors  of  the  district. 


WEST  VIRGINIA. 


West  Virginia  depends  primarily  on  the  general 
property  tax  for  state,  county,  and  municipal  pur- 
poses. There  are,  besides,  a  collateral  inheritance  tax, 
a  system  of  annual  license  or  franchise  taxes  on  corpo- 
rations, including  insurance,  telegraph,  and  express 
companies,  and  license  taxes  on  various  acts,  busi- 
nesses, and  occupations.  The  poll  tax  is  devoted  to 
the  school  fund. 

In  1904  and  1905  the  entire  revenue  law  of  the  state 
was  revised.  The  changes  made  at  that  time  have  not 
been  included  in  this  compilation. 

CONSTITUTIONAL    PROVISIONS. 
ARTICLE    X. 

Sec.  1.  Taxation  shall  be  equal  and  uniform  throughout  the  state, 
and  all  property,  both  real  and  personal,  shall  be  taxed  in  proportion  to 
its  value,  to  be  ascertained  as  directed  by  law.  No  one  species  of  prop- 
erty from  which  a  tax  may  be  collected  shall  be  taxed  higher  than  any 
other  species  of  property  of  equal  value;  but  property  used  for  educa- 
tional, literary,  scientific,  religious  or  charitable  purposes,  all  cemeteries, 
and  public  property  may,  by  law,  be,  exempted  from  taxation.  The 
legislature  shall  have  power  to  tax,  by  uniform  and  equal  laws,  all  privi- 
leges and  franchises  of  persons  and  corporations. 

Sec.  2.  The  legislature  shall  lew  an  annual  capitation  tax  of  one  dol- 
lar upon  each  male  inhabitant  of  the  state  who  has  attained  the  age  of 
twenty-one  years,  which  shall  be  annually  appropriated  to  the  support 
of  free  schools.  Persons  afflicted  with  bodily  infirmity  may  be  exempted 
from  the  tax. 

Sec.  5.  The  power  of  taxation  of  the  legislature  shall  extend  to  pro- 
visions for  the  payment  of  the  state  debt,  and  interest  thereon,  the  sup- 
port of  free  schools,  and  the  payment  of  the  annual  estimated  expenses  of 
the  state;  but  whenever  any  deficiency  in  the  revenue  shall  exist  in  any 
year  it  shall,  at  the  regular  session  thereof  held  next  after  the  deficiency 


'This  compilation  is  derived  mainly  from  the  following  sources: 
The  Code  of  West  Virginia,  fourth  edition,  as  amended,  to  and  in- 
cluding the  year  1899.     Compiled  by  John  A.  Worth.     Published  by 
Mail  Tribune  Book  Room,  Charleston,  1900. 

Acts  of  West  Virginia,  Regular  Session,  1901 :  The  Tribune  Company, 
Charleston,  1901. 


occurs,  levy  a  tax  for  the  ensuing  year  sufficient,  with  the  other  sources 
of  income,  to  meet  such  deficiency,  as  well  as  the  estimated  expenses  of 
such  year. 

Sec.  7.  County  authorities  shall  never  assess  taxes  in  any  one  year 
the  aggregate  of  which  shall  exceed  ninety-five  cents  per  one  hundred 
dollars  valuation,  except  for  the  support  of  free  schools:  payment  of 
indebtedness  existing  at  the  time  of  the  adoption  of  this  constitution  and 
for  the  payment  of  any  indebtedness,  with  the  interest  thereon,  created 
under  the  succeeding  section,  unless  such  assessment,  with  all  questions 
involving  the  increase  of  such  aggregate,  shall  have  been  submitted  to 
the  vote  of  the  people  of  the  county  and  have  received  three-fifths  of 
all  the  votes  cast  for  and  against  it. 

Sec.  8.  (No  county,  city,  school  district,  or  municipal  corporation 
may  become  indebted  to  an  amount  exceeding  five  per  cent  of  the 
assessed  valuation  of  the  property  in  such  civil  division,  nor  without 
providing  for  a  direct  annual  tax  sufficient  to  pay  annually  the  interest 
on  the  debt  and  the  principal  thereof  within  thirty-four  years.) 

Sec.  9.  The  legislature  may,  by  law,  authorize  the  corporate  authori- 
ties of  cities,  towns,  and  villages,  for  corporate  purposes,  to  assess  and 
collect  taxes;  but  such  taxes  shall  be  uniform  with  respect  to  persons 
and  property  within  the  jurisdiction  of  the  authority  imposing  the 
same. 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  Assessors  in  towns,  cities,  and  villages,  who  are  elected  for  one 
year. 

(2)  Sergeant,  who  is  elected  for  one  year,  and  is  collector  of  taxes  for 

towns,  cities,  or  villages. 

(3)  County  assessors,  who  are  elected  for  a  term  of  four  years. 

(4)  Sheriff,  who  is  elected  for  a  term  of  four  years,  and  who  acts  as 
tax  collector  for  the  county. 

(5)  County  court,  composed  of  three  commissioners,  elected  for  a 
term  of  six  years. 

(6)  The  board  of  public  works,  consisting  of  the  governor,  the  attor- 
ney-general, the  superintendent  of  free  schools,  the  auditor,  and  the 
treasurer,  together  with  the  secretary  of  state  ex  officio,  forms  a  state 
board  of  assessment. 

(7)  A  state  board  of  equalization,  authorized  by  the  legislature  at 
each  decennial  assessment  of  real  estate. 


TAXATION  AND  REVENUE  SYSTEMS— WEST  VIRGINIA. 


817 


State  Kevenues. 


a.   TAXES. 


I.    The  general  property  tax. 
1.  Base — 

a.  The  property  included  and  exempt. — All  property 
in  the  state  is  subject  to  taxation,  unless  specially 
exempted. 

(1)  "Real  property"  includes  all  interest  in  land  and  its  appurte- 
nances, 

(2)  "Personal  property"  includes  all  fixtures  attached  to  land,  if  not 
included  in  the  valuation  of  land;  all  things  of  value,  movable  and  tan- 
gible,  which  are  the  subjects  of  ownership;  and  money,  credits,  and 
uvestments.  All  personal  property  belonging  to  residents  of  the  state, 
whether  situated  in  or  out  of  the  state,  and  all  personal  property  in  the 
slate,  although  owned  by  persons  residing  out  of  the  state,  is  subject  to 
taxation.  But  personal  property  permanently  located  in  another  state, 
where  it  is  subject  to  taxation,  is  not  to  be  taxed  here. 

(3)  Property  exempted,  in  addition  to  public  property,  includes: 
Churches  and  parsonages,  cemeteries,  libraries;  property  used  for  edu- 
cational, charitable,  and  benevolent  purposes;  fire  companies;  the  prod- 
ucts and  increase  in  number  of  live  stock  and  the  produce  of  mines,  salt 
wells,  and  oil  wells,  and  all  such  manufactured  articles  and  products  of 
mechanical  skill  and  labor  produced  within  the  state  during  the  year 
preceding  the  1st  day  of  January  and  remaining  unsold  on  that  day  and 
in  the  possession  of  the  producer. 

b.  Assessment. — There  is,  in  general,  but  one  assess- 
ment for  state,  county,  and  municipal  purposes.  The 
county  is  the  assessment  district,  except  that  certain 
counties  are  divided  into  two  districts  with  an  assessor 
elected  for  each.  The  assessment  refers  to  the  1st  of 
April.  The  land  books  of  the  county  are  to  be  made 
out  when  ordered  by  the  legislature,  usually  decen- 
nially, by  the  clerk  of  the  county  court.  Changes  of 
ownership  or  of  value  are  entered  annually  by  the  clerk 
on  the  basis  of  information  obtained  by  the  assessors, 
who  take  with  them  the  land  books  of  the  preceding 
year  and  require  each  taxpayer  under  oath  to  state 
whether  his  land  is  correctly  entered.  Values  are, 
however,  determined  by  the  assessors.  There  is  a 
penalty  of  $50  on  taxpayers  failing  to  give  the  required 
information. 

Every  person  of  full  age  and  sound  mind  is  required  to  list  the  per- 
sonal property  belonging  to  him  and  make  a  valuation  thereof  under 
oath.  Any  person  may  refuse  to  value  any  personal  property  listed  by 
him  if  he  exhibits  the  same  to  the  assessor,  who  must  thereupon  assess 
the  value  tliereof. 

Disagreement  between  the  owner  and  the  assessor  in  regard  to  the 
fair  cash  value  of  any  personal  property  may  be  referred  to  two  discreet 
voters,  one  to  be  chosen  by  each,  and  their  decision  or  that  of  an  umpire 
chosen  by  them  is  final. 

Mortgages  or  deeds  of  trust  to  secure  a  debt  or  liability  are  assessed  to    ' 
the  mortgagor  until  the  mortgagee  or  trustee  takes  possession,  after 
which  he  is  deemed  the  owner.     Personal  property  mortgaged  or  pledged 
is  likewise  assessed  to  the  party  who  has  possession. 

In  listing  credits  or  investments  the  debts  owned  as  principal  debtor 
may  be  deducted,  but  not  those  for  which  the  taxpayer  is  liable  merely 
M  surety,  indorser,  or  guarantor,  unless  the  principal  be  insolvent.  In- 
vestments and  credits  are  to  be  rated  at  their  market  value. 

The  real  estate  of  corporations  is  assessed  as  t  hat  of  individuals.  The 
actual  value  of  the  capital  invested  in  the  business,  exclusive  of  real  es- 
tate, is  estimated  by  taking  the  aggregate  value  of  the  personal  property 
of  the  company  and  deducting  from  credits  and  invest  incuts  t  he  amount 
they  owe. 

932—07 52 


When  the  property,  stock,  or  capital  of  any  company  is  assessed  to 
ths  company,  no  person  owning  any  share  or  interest  therein  is  to  be 
assessed  on  such  shares. 

Toll  bridges  and  ferries  are  assessed  at  ten  times  their  annual  value 
for  purposes  of  taxation.  Railroad  bridges  on  which  a  separate  toll  or 
fare  is  charged  are  also  assessed  at  ten  times  their  annual  value. 

Railroad  companies,  including  street  railroads,  sleeping,  parlor,  and 
dining  car  companies,  and  freight-line  and  equipment  companies  are 
taxed  upon  the  general  property  valuation.  Property  used  in  the  op- 
eration of  the  road  is  assessed  by  the  board  of  public  works  of  the  state 
on  the  basis  of  elaborate  returns  by  the  railroad.  Property  not  used  in 
operation  of  the  railroad,  but  owned  by  it,  is  assessed  like  property  of 
individuals.  The  assessment  of  the  state  board  is  apportioned  to  the 
counties,  and  by  the  counties  to  the  municipalities. 

The  value  of  the  capital  used  in  trade  or  business  of  merchants  and 
firms  not  incorporated  is  assessed  on  the  basis  of  elaborate  special 
returnsr 

Banks  are  assessed  on  capital  employed.  Debts  may  be  deducted 
from  moneys  and  credits  only. 

c.  Equalization. — The  county  court  hears  complaints 
as  to  the  assessment  and  equalizes  between  individu- 
als. There  is  an  appeal  to  the  circuit  court  of  the 
county.  Railroads  may  also  appeal  to  the  circuit 
court  from  the  assessment  of  the  board  of  public  works. 
The  prosecuting  attorney  represents  the  interest  of  the 
state  in  such  appeals. 

There  is  no  state  board  of  equalization  and  no  equali- 
zation between  counties,  except  as  provided  by  the 
legislature  in  the  case  of  the  decennial  assessment  of 
real  estate. 

2.  Rate— 

The  rate  for  state  purposes,  in  every  year  for  which 
a  different  rate  is  not  prescribed,  is  25  cents  on  every 
$100  valuation  for  general  state  purposes,  and  10  cents 
on  such  valuation  for  the  support  of  free  schools. 

3.  Collection — 

Both  state  and  county  taxes  are  collected  by  the 
sheriff  of  the  county,  or  by  collectors  appointed  by  the 
auditor. 

Taxes  are  a  lien  on  real  estate  from  April  1,  the 
assessment  day,  and  are  due  and  payable  on  the  1st 
day  of  August,  and  become  delinquent  on  the  1st  day 
of  November.  A  discount  of  2\  per  cent  is  allowed  for 
payment  before  that  date.  Delinquent  taxes  may  be 
collected  by  distraint  of  personal  property,  by  garnish- 
ment of  money  or  property  in  the  hands  of  another, 
and  by  sale  of  lands  by  the  sheriff. 

Taxes  assessed  on  railroads,  both  state  and  local,  are  collected  by  the 
state  auditor,  and  if  delinquent  on  the  20th  of  January,  are  then  col- 
lected by  the  sheriff  with  a  penalty  of  10  per  cent. 

The  sheriff  or  collector  is  compensated  by  fees  out  of  the  taxes  col- 
lected. 

II.  Poll  tax. 

The  assessor  is  to  list  for  taxation  all  male  persons 
over  21  years  of  age  residing  in  his  district  on  April  1. 
The  rate  of  the  tax  is  $1  per  year. 

III.  Inheritance  tax. 

All  property  passing  by  will,  descent,  or  transfer, 
taking  effect  after  death,  except  to  the  father,  mother, 
husband,  child,  or  lineal  descendant  of  the  grantor, 
where  the  estate  so  passing  is  valued  at  not  less  than 


818 


WEALTH,  DEBT,  AND  TAXATION. 


$1,000,  is  subject  to  an  inheritance  tax  of  2\  percent 
on  every  SI 00  of  [clear  value.  The  tax  is  collected  by 
the  clerk  of  the  county  court. 

IV.  Corporation  taxes. 

In  addition  to  the  general  property  tax  certain  taxes 
are  levied  on  corporations: 

Corporations  incorporated  and  having  their  principal  place  of  busi- 
ness in  the  state  (termed  resident  corporations)  arc  required  to  pa}'  an 
annual  license  tax  as  follows,  according  to  capital  stock:  $10,000  or  less, 
$10;  over  $10,000  to  $25,000,  $15;  $25,000  to  $.50,000,  $20;  $50,000  to 
$100,000,  $25;  $100,000  to  $1,000,000,  $25  plus  5  cents  on  each  $1,000 
in  excess  of  $100,000;  $1,000,000  and  over,  $70  plus  $10  on  each 
$1,000,000  in  excess  of  $1,000,000. 

Domestic  corporations  which  are  nonresident  are  required  to  pay  an 
annual  license  tax  as  follows,  according  to  capital  stock:  $25,000  or  less, 
$20;  over  $25,000  to  $100,000,  $.50;  $100,000  to  $1,000,000,  $50  and  40 
cents  on  each  $1,000  in  excess  of  $100,000;  $1,000,000  to  $2,000,000, 
$410  and  30  cents  on  every  $1,000  in  excess  of  $1,000,000;  $2,000,000 
to  $3,000,000,  $710  and  25  cents  on  every  $1,000  in  excess  of  $2,000,000; 
$3,000,000  to  $4,000,000,  $910  and  10  cents  on  every  $1,000  in  excess 
of  $3,000,000;  $4,000,000  and  over,  $1,010  and  $50  on  each  $1,000,000 
in  excess  of  $4,000,000. 

Foreign  corporations  on  complying  with  certain  conditions  are  enti- 
tled to  the  rate  of  "resident"  corporations,  according  to  the  propor- 
tion of  their  capital  stock  which  is  represented  by  the  property  owned 
and  used  in  this  state,  when  the  value  of  the  property  amounts  to  at 
least  $5,000.     In  no  case  is  the  license  tax  to  be  less  than  $100. 

This  tax  does  not  apply  to  foreign  insurance,  telegraph,  telephone,  or 
express  companies,  for  which  an  annual  license  tax  is  specially  provided. 

Corporations  chartered  for  educational,  literary,  agricultural,  scien- 
tific, religious,  or  charitable  purposes,  and  cemeteries  and  lodges,  not 
incorporated  for  profit  to  the  stockholders,  are  exempt. 

Domestic  insurance,  express,  telegraph,  and  telephone  companies  are 
taxed  as  other  corporations. 

V.  Business  taxes  and  licenses. 

The  state  requires  licenses  for  various  acts,  occupa- 
tions, and  businesses,  to  be  issued  by  the  county  court 
of  the  place  in  which  the  same  are  to  be  carried  on, 
except  in  incorporated  cities,  villages,  or  towns,  in 
which  cases  the  license  is  to  be  issued  by  the  council 
thereof.  It  is  the  duty  of  the  assessor  to  ascertain 
from  time  to  time  all  persons  in  his  district  from  whom 
state  licenses  are  required;  but  it  is  also  the  duty  of 
every  person  to  apply  to  the  assessor  and  cause  him- 
self to  be  properly  listed  and  licensed. 

The  following  taxes  are  levied  annually  unless  other- 
wise stated : 

Permit  for  goods  sold  at  auction,  $2  on  each  $100  valuation  of  goods  so 
offered,  when  the  same  are  not  assessed  as  the  capital  used  in  trade  or 
business  by  merchants.  Hawkers  and  peddlers — without  a  horse,  $100; 
with  one  horse,  $150;  with  two  horses,  $200.  Traveling  "salesmen  of 
sewing  machines,  $10;  of  lightning  rods,  $.50;  of  organs  and  musical 
instruments,  $20.  Shooting  galleries,  $25 ;  theaters  and  opera  houses — 
in  cities  of  20,000  inhabitants  or  over,  $20  per  week,  $100  per  year; 
10,000  to  20,000,  $15  per  week,  $75  per  year;  under  10,000,  $10  per 
week,  $25  per  year.  Circus,  for  each  exhibition,  $50;  circus  and  menag- 
erie, $75;  merry-go-round,  $25  per  week;  side  shows,  $10  per  exhibi- 
tion; ten-cent  shows,  $20  per  week.  Tax  on  state  seal,  $1.  Cigarettes, 
retail  dealer,  $10;  wholesale  dealer,  $50.  Hotel,  tavern,  or  restaurant, 
3  per  cent  of  the  yearly  value  of  the  premises  occupied.  Druggists, 
$10,  in  addition  to  all  other  taxes.  Bowling  alleys  for  public  use,  $40 
for  first  alley,  $15  each  additional  alley;  billiard  table,  $75  for  first 
table,  $25  for  each  additional  table;  bagatelle  table,  $25  for  first  table, 


$10  for  each  additional  table.  Roller  skating  rinks  for  public  resort — 
cities  of  10,000  inhabitants  or  more,  $100;  5,000  to  10,000,  $50;  be- 
low 5,000,  $25.  Auctioneers,  $5,  with  $2  additional  for  every  1,000 
inhabitants  of  the  town.  Stock  brokers,  $50;  money  brokers,  $100; 
pawnbrokers,  $100.  Sale  of  patent  rights,  $10.  Licenses  of  distilleries 
and  breweries— annual  capacity  25,000  barrels,  $550;  15,000  to  25,000 
barrels,  $350;  5,000  to  15,000  barrels,  $200;  1,000  to  5,000  barrels,  $125; 
up  to  1,000  barrels,  $50.  Sale  of  liquors — at  retail,  $350;  in  theaters, 
$150;  wholesale,  $350;  apple  and  peach  brandy  by  distiller  (5  gallons 
or  over  at  a  sale),  $100.  No  license  for  the  sale  of  intoxicating  liquors 
in  incorporated  city,  town,  or  village  may  be  granted  by  the  county 
court  without  the  consent  of  the  authorities  of  such  city,  town,  or 
village. 

B.    FEES. 

The  clerk  of  county  court  receives  from  corporations  for  issue  of  cer- 
tificate of  incorporation,  $1 ;  for  original  declaration,  50  cents. 

The  secretary  of  state  receives  small  fees  for  issuing  commissions,  for 
copies  of  papers,  etc. 

The  auditor  receives  fees  from  insurance  companies — for  examination 
of  statements,  $10;  for  certificate  of  authority,  $5. 

County  Revenues. 

a.   TAXES. 

I.  The  general  property  tax. 

1.  Base — 

The  property  included  and  the  assessment  thereof 
are  the  same  for  county  as  for  state  purposes. 

2.  Rate— 

The  levy  is  made  by  the  county  court,  and  the  rate 
is  limited  to  95  cents  per  $100,  except  for  schools  and 
the  payment  of  debt  existing  at  time  of  adoption  of  the 
constitution  and  of  certain  special  debts.  This  rate, 
however,  may  be  increased  by  a  three-fifths  vote  of  the 
electors  voting  in  a  special  election  therefor. 

3.  Collection — 

Collection  is  made  by  the  sheriff  at  the  same  time 
and  in  the  same  manner  as  that  of  the  state  taxes. 
Taxpayers  may  apply  to  the  county  court  for  relief 
against  county  levies  improperly  charged. 

The  sheriff  receives  a  commission  of  5  per  cent  on  county  levies  unless 
the  county  court  prescribes  a  different  compensation. 

II,  III,  and  IV.     Poll  tax,  inheritance  tax,  and  corpo- 
ration taxes. 

There  are  no  poll,  inheritance,  or  corporation  taxes 
for  the  county. 
V.  Business  taxes  and  licenses. 

The  county  court  in  counties  where  the  dog  tax  is  adopted  by  vote  of 
the  people  is  annually  to  levy  a  license  tax  on  dogs  listed  by  the  assessor 
of  50  cents  on  males  and  $1  on  females.  Hunter's  license,  nonresi- 
dents, $25. 

Municipal  Revenues. 

A.    TAXES. 

I.    The  general  property  tax. 
'         1.  Base — 

a.  The  property  included  and  exempt. — The  property 
included  is  the  same  as  for  state  taxation,  and  in  addi- 
tion dogs  are  included. 


TAXATION  AND  REVENUE  SYSTEMS— WISCONSIN. 


819 


b.  Assessment. — Municipalities  with  a  population  of 
over  10,000  may  make  an  assessment  of  their  own 
substantially  in  the  manner  and  form  of  that  made  by 
the  assessor  of  the  county.  The  assessor  is  also  to  list 
the  dogs  and  their  owners. 

c.  Equalization. — There  is  no  provision  for  equaliza- 
tion. 

2.  Rate— 

Taxes  are  to  be  levied  by  the  council,  the  rate  being 
limited  not  to  exceed  $1  on  every  $100  valuation. 

3.  Collection — 

Collection  is  made  by  the  sergeant  in  a  manner  anal- 
ogous to  that  for  state  taxes. 

II,  III,  and  IV.     Poll  tax,  inheritance  tax,  and  corpora- 
tion taxes. 

There  are  no  poll,  inheritance,  or  corporation  taxes 
for  cities,  towns,  and  villages. 
V.  Business  taxes  and  licenses. 

The  council  may  require  a  city,  town,  or  village 
license  for  anything  for  which  a  state  license  is  required, 
but  liquor  licenses  are  under  the  control  of  the  state. 

Magisterial  Districts. 

Each  county  is  laid  off  into  districts,  not  less  than 
three  nor  more  than  ten  in  number,  as  nearly  equal  as 
may  be  in  territory  and  population. 

District  taxes,  based  on  the  county  assessment,  are 
levied  for  the  use  of  the  school  fund,  the  building 
fund,  and  the  opening,  constructing,  and  repairing  of 
roads  and  bridges. 


District  taxes  are  collected  by  the  sheriff  of  the 
county  in  the  same  manner  as  the  state  and  county 
taxes  are  collected. 

Road  taxes,  based  on  the  county  assessment,  are 
levied  according  to  districts  by  the  county  court.  The 
taxpayer  may  work  out  his  road  tax.  The  county 
court  may  also  levy,  for  road  purposes,  a  poll  tax  of  $1 
on  every  male  inhabitant  over  21  and  under  50  years 
of  age. 

School  Revenues. 

The  constitution  provides  a  permanent  "school 
fund"  and  the  interest  on  this  fund,  the  revenue  from 
the  state  tax  of  10  cents  on  every  $100  valuation,  the 
proceeds  from  all  forfeitures,  confiscations,  and  fines, 
and  from  the  annual  capitation  tax  are  set  apart  as 
the  general  school  fund  and  distributed  to  the  several 
counties  in  proportion  to  the  school  population.  The 
county  superintendents  then  apportion  the  shares  of 
their  respective  counties  to  the  school  districts. 

Every  magisterial  district  of  the  county  is  a  school 
district.  For  a  building  fund  the  board  of  education 
of  the  district  is  to  levy  a  tax  annually  on  the  first 
Monday  in  July  on  the  property  taxable  for  state  and 
county  purposes  in  the  district,  the  tax  not  to  exceed 
the  rate  of  40  cents  on  every  $100  of  the  state  and 
county  assessment;  and  for  the  support  of  primary 
schools,  it  is  to  levy  one  not  to  exceed  50  cents  on 
every  $100.  Provision  is  made  for  a  special  additional 
levy  of  30  cents. 


WISCONSIN.1 


Wisconsin  depends  principally  upon  the  general 
property  tax  for  state,  county,  and  municipal  reve- 
nues. There  is  a  system  of  license  fees  so  called,  con- 
sisting of  taxes  on  gross  receipts  levied  on  quasi  public 
corporations  and  insurance  companies,  which  are  in 
lieu  of  ad  valorem  taxes.  The  inheritance  tax  was 
adopted  in  1899,  but  declared  unconstitutional  in 
1902  (March),  and  the  poll  tax  is  a  local  road  tax  only. 

CONSTITUTIONAL    PROVISIONS. 
ARTICLE   VIII. 

Sec.  1.  The  rule  of  taxation  shall  be  uniform,  and  taxes  shall  be 
levied  upon  such  property  as  the  legislature  shall  prescribe. 

Sec.  5.  The  legislature  shall  provide  for  an  annual  tax  sufficient  to 
defray  the  estimated  expenses  of  the  state  for  each  year;  and  whenever 
the  expenses  of  any  year  shall  exceed  the  income  the  legislature  shall 
provide  for  levying  a  tax  for  the  ensuing  year,  sufficient,  with  other 
sources  of  income,  to  pay  the  deficiency  as  well  as  the  estimated  ex- 
penses of  such  ensuing  year. 

Sue.  6.  (Taxes  are  to  be  provided  for  in  laws  authorizing  creation  of 
public  debts  by  the  state  which  will  pay  the  principal  and  interest 
within  five  years.) 

■This  compilation  is  derived  mainly  from  the  following  sources: 
Wisconsin  Statutes  of  1898,  edited  by  Arthur  L.  Sanborn  and  John  R. 
Berryman:  Madison,  Wis.,  1898. 

Laws  of  Wisconsin,  sessions  of  1899,  1901 :  Madison,  Wis.,  1899, 1901. 


Sec.  8.  (Any  law  which  imposes,  continues,  or  renews  a  tax  must  be 
passed  by  yeas  and  nays  in  a  house  of  which  three-fifths  of  all  the  mem- 
bers elected  are  required  to  constitute  a  quorum.) 

ARTICLE    VII. 

Sec  18.  The  legislature  shall  impose  a  tax  on  all  civil  suits  com- 
menced or  prosecuted  in  the  municipal,  inferior,  or  circuit  courts,  which 
shall  constitute  a  fund  to  be  applied  toward  the  payment  of  the  salary 
of  judges. 

ARTICLE    IV. 

Sec.  31.  The  legislature  is  prohibited  from  enacting  any  special  or 
private  laws  in  the  following  cases:  *  *  *  6th.  For  assessment 
or  collection  of  taxes,  or  for  extending  the  time  for  collection  thereof. 

article  x. 

Sec.  4.  Each  town  and  city  shall  be  required  to  raise  by  tax,  annu- 
ally, for  the  support  of  common  schools  therein,  a  sum  not  less  than  one- 
half  the  amount  received  by  such  town  or  city,  respectively,  for  school 
purposes  from  the  income  of  the  school  fund. 

article  XI. 

Sec.  3.  (Municipal  corporations  are  to  be  restricted  by  the  legisla- 
ture in  their  power  of  taxation,  assessment,  and  contracting  debts. 
Any  county,  city,  town,  village,  school  district,  or  other  municipal  cor- 
poration incurring  any  indebtedness'must,  before  or  at  the  time  of  doing 
so,  provide  for  the  collection  of  a  direct  annual  tax  sufficient  to  pay  the 
interest  on  the  debt  as  it  falls  due  and  also  the  principal  within  twenty 
years.) 


820 


WEALTH,  DEBT,  AND  TAXATION. 


OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  The  town,  city,  and  village  assessors,  elected  for  one  year. 

(2)  The  town,  city,  and  village  treasurers,  who  act  as  collectors, 
elected  for  one  year. 

(3)  The  board  of  review,  in  towns,  composed  of  the  supervisors,  clerk, 
and  assessor;  in  cities,  of  the  -nayor,  clerk,  and  assessor;  in  villages,  of 
the  president,  clerk,  and  assessor. 

(4)  The  county  clerk,  elected  for  two  years. 

(5)  The  county  board,  composed  of  supervisors,  elected  annually  from 
cities  and  towns. 

(6)  The  county  supervisor  of  assessments,  elected  every  three  years 
by  the  county  board,  except  in  Buffalo  county,  to  oversee  local  assessors 
(office  created  in  1901). 

(7)  The  state  tax  commission,  composed  of  the  tax  commissioner  and 
two  assistants,  appointed  by  the  governor  for  ten  years.  In  1901  this 
commission  was  made  a  state  board  of  assessment. 

(8)  A  state  board  of  assessment,  composed  of  the  state  tax  commis- 
sion, assesses  the  property  of  express  companies,  sleeping  car  com- 
panies, freight-line  companies,  and  equipment  companies. 

State  Revenues. 

A.  TAXES. 

I.    The  general  property  tax. 
1.  Base — 
a.    The  property  included  and  exempt. — All  property 
in  the  state  except  such  as  is  exempted  is  subject  to 
taxation. 

(1)  "Real  property"  includes  not  only  the  land  itself,  but  all  build- 
ings, fixtures,  improvements,  rights,  and  privileges  appertaining  thereto, 
all  swamp  and  overflowed  lands  contracted  for  sale  by  any  county 
board,  and  all  public  lands  sold  and  not  patented,  without  regard  to  any 
balance  of  purchase  money. 

(2)  "  Personal  property  "  includes  toll  bridges,  sawed  logs,  timber  and 
lumber,  either  upon  land  or  afloat;  steamboats  and  ships  at  home  or 
abroad;  buildings  upon  leased  lands,  if  not  assessed  with  the  lands; 
ferryboats,  including  their  franchises;  ice,  cut  and  stored;  all  debts  due 
from  solvent  debtors,  whether  on  account,  note,  contract,  bond,  mort- 
gage, or  other  security;  and  all  goods,  wares,  and  effects  having  any 
real  or  marketable  value  not  included  in  t(ie  term  "  real  property." 

Improvements  on  homestead  lands  of  settlers  on  the  public  domain 
are  to  be  assessed  as  personal  property. 

All  property,  including  real  estate,  owned  or  used  by  persons  or  cor- 
porations engaged  in  supplying  municipalities  with  water,  electric  light, 
and  gas  is  treated  as  personal  property. 

(3)  Exemptions,  in  addition  to  public  property,  are:  Personal  prop- 
erty owned  by  any  religious,  scientific,  literary,  or  benevolent  associa- 
tion, and  the  real  property  necessary  for  location  and  convenience  of 
buildings  of  same,  not  exceeding  ten  acres;  the  lands  of  a  chartered 
college  or  university  not  exceeding  forty  acres;  parsonages;  public 
libraries;  state  or  county  agricultural  societies;  fire  engines,  buildings, 
and  grounds  of  organized  fire  companies;  the  property  of  Indians  who 
are  not  citizens,  except  lands  held  by  them  by  purchase;  cemeteries; 
pensions;  wearing  apparel,  family  portraits,  private  libraries,  and 
household  furniture  not  exceeding  $200  in  value;  growing  crops;  pro- 
visions and  fuel  sufficient  to  sustain  a  family  for  six  months;  the  Home 
of  the  Friendless  in  Milwaukee:  fair  grounds;  tree  belts;  public  parks: 
monument  grounds;  armories;  zinc  producing  plants  for  three  years; 
the  Turner  societies;  capital  stock,  installments  paid  in,  and  securities 
of  any  mutual  savings  fund  or  loan  and  building  association;  public  art 
galleries;  capital  stock  of  certain  cooperative  societies;  wide-tired 
wagons  and  wide-gauge  sleighs;  personal  property  of  certain  trust  or 


annuity  corporations;  Milwaukee  Orphan  Asylum;  plants  of  beet  sugar 
refineries  for  five  years  from  April  2,  1897;  plank  or  toll  roads;  boule- 
vards and  pleasure  grounds  held  in  trust  for  cities;  Lawrence  Institute 
of  Wisconsin. 

b.  Assessment. — The  assessment  or  valuation  of 
property  is  made  by  the  local  assessors  in  the  towns, 
villages,  and  cities,  and  refers  in  the  case  of  real  es- 
tate to  any  date  after  May  1  and  before  the  time  of  sit- 
ting of  the  board  of  review;  in  the  case  of  personal 
property,  except  lumber,  to  the  1st  day  of  May,  and 
in  the  case  of  lumber,  to  April.  1.  A  separate  roll  by 
counties  is  made  up  by  the  state  board  of  assessment 
and  is  the  basis  of  the  apportionment  of  state  taxes. 
(See  Equalization.) 

Taxes  may  be  assessed  in  cities,  villages,  and  towns 
independent  of  the  state  assessment. 

Real  and  personal  property  is  to  be  valued  annually 
by  the  assessor,  either  from  actual  view  or  the  best 
information  available,  at  the  full  value  that  could  be 
obtained  at  private  sale.  Taxpayers  are  required  to 
make  a  statement  under  oath  of  the  average  amount 
of  money,  notes,  bonds,  mortgages,  or  other  securities 
held  by  them  and  the  average  amount  of  indebtedness 
to  be  deducted ;  and  the  net  average  valuation  for  the 
year  ending  May  1  is  to  be  assessed  for  taxation.  If 
the  assessor  has  reason  to  believe  that  there  is  other 
property  liable  to  taxation,  he  may  add  to  the  aggre- 
gate valuation  of  personal  property  such  amount  as  he 
estimates  to  be  just  and  equitable.  The  assessor  has 
authority  also  to  examine  the  taxpayer  under  oath  as 
to  personal  property  not  required  to  be  listed  in  his 
sworn  statement  of  securities. 

Bank  stock  of  state  and  national  banks  is  to  be  assessed  where  the 
bank  is  located.  Banks  must  furnish  the  assessor  with  the  names  of 
stockholders,  their  addresses,  and  the  amounts  held  by  them.  The 
value  of  real  estate  owned  by  banks,  excepting  the  bank  building,  is  not 
deducted. 

Corporations,  except  when  otherwise  provided,  are  assessed  on  their 
property  in  the  same  manner  as  individuals.  Stock  in  corporations  so 
taxed  is  not  assessed.  The  fixtures  and  appurtenances  of  waterworks 
and  gas  and  electric  light  planfs,  and  the  franchises  thereof,  not  owned 
by  municipalities,  are  assessed  together  as  a  single  item  or  unit  where 
the  principal  place  of  business  is  located.  The  valuation  is  then  appor- 
tioned to  the  municipalities  where  the  plant  is  situated. 

Since  April  6,  1899,  sleeping  car  companies  and  freight-line  and 
equipment  companies  have  been  taxed  on  their  property.  The  assess- 
ment is  made  by  the  state  board  of  assessment.  "  Sleeping  car  com- 
pany" includes  dining,  buffet,  chair,  parlor,  and  palace  car  companies. 
From  the  actual  value  of  the  entire  amount  of  capital  stock  used  in  the 
business  is  deducted  the  value  of  real  estate  used  out  of  the  state;  this 
amount  is  then  divided  by  the  total  number  of  miles  of  railroad  over 
which  the  cars  are  operated,  to  obtain  the  value  per  mile,  which  is  then 
multiplied  by  the  number  of  miles  over  which  the  cars  are  run  within 
the  state.  The  result  is  taken  as  the  actual  value  of  the  property 
within  the  state  subject  to  taxation.  A  tax  is  then  levied'  for  the  use 
of  the  state,  at  the  average  rate  of  taxation,  state  and  local  consolidated. 

Express  companies  are  assessed  by  the  state  board  of  assessment 
upon  the  actual  value  of  their  property  operated  in  the  state,  in  the 
same  manner  as  car  companies  are  assessed. 

Up  to  1903,  a  mortgage  of  real  estate  was  deemed  personal  prop- 
erty and  liable  to  taxation  according  to  its  value,  while  the  real 
estate  covered  by  the  mortgage  was  also  liable  to  taxation  without 


TAXATION  AND  REVENUE  SYSTEMS— WISCONSIN. 


821 


deduction  on  account  of  the  mortgage.  By  the  act  of  May  23,  1903, 
the  mortgage  is  to  be  deemed  an  interest  in  the  real  estate  and  assessed 
as  such  where  the  land  lies.  At  the  option  of  the  mortgagor  both  said 
interests  may  be  assessed  and  taxed  together,  without  separate  valua- 
tion, to  the  mortgagor  or  occupant,  the  same  as  unencumbered  real 
estate.  The  interest  of  the  mortgagor  is  to  be  assessed  only  for  such 
value  as  remains  after  deducting  the  interest  assessed  to  the  mortgagee. 
The  exemption  of  credits  on  account  of  debts  owing  does  not  apply  to 
mortgage  credits  assessed  as  an  interest  in  real  estate. 

Three  cents  per  net  ton  of  the  registered  tonnage  of  the  vessel  may 
be  paid  in  lieu  of  all  other  taxes,  state  or  municipal.  One-half  is  then 
paid  to  the  county. 

c.  Equalization. — The  board  of  review  of  the  towns 
and  cities  equalizes  the  assessment  between  individ- 
uals of  the  municipality  and  corrects  the  assessment 
roll.  It  can  change  not  only  the  valuation  of  specific 
articles  assessed,  but  also  the  aggregate  valuation  of 
any  kind  or  class  of  property. 

The  county  board  equalizes  between  towns,  cities, 
and  villages  in  the  county. 

The  state  board  of  assessment  equalizes  the  assess- 
ment as  between  different  counties,  according  to  the 
relative  values  and  in  accordance  with  statistics  of 
population,  local  valuation  of  property,  and  other  data 
furnished  by  the  secretary  of  state.  The  method  is  to 
make  up  a  separate  roll  for  the  state  by  counties,  the 
arbitrary  valuation  assigned  each  county  being  the 
basis  for  the  apportionment  of  state  taxes. 

2.  Rate— 

The  legislature  is  to  provide  for  such  an  annual  tax 
upon  the  aggregate  valuation  of  the  state  as  is  suffi- 
cient to  meet  the  estimated  expenses  of  th&  state  for 
each  year,  and  the  deficiency,  if  any,  from  the  previous 
year.  The  sum  to  be  raised  is  apportioned  by  the 
secretary  of  state  among  the  several  counties  in  pro- 
portion to  the  relative  valuation  of  each  county  as 
determined  by  the  state  board. 

There  is  to  be  levied  annually  a  state  tax  of  1  mill  on  the  dollar  to  be 
appropriated  to  the  common  school  fund  income.  (Changed  in  1903  to 
seven-tenths  of  1  mill.) 

3.  Collection- 
All  taxes  for  state,  county,  school,  and  local  pur- 
poses are  collected  by  town  or  city  treasurers.  On 
May  1,  taxes  become  a  lien  on  the  land  upon  which 
they  are  levied  and  upon  the  timber  cut  from  the  land. 
Taxes  are  due  January  31  and  5  per  cent  is  remitted 
for  voluntary  payment  before  that  date.  The  treas- 
urer may  collect  by  distraint  and  sale  of  goods  and 
chattels,  or  may  also  bring  an  action  to  collect  the  tax 
on  personal  property  and,  after  advertising  such  sale, 
he  may  sell  on  the  third  Tuesday  in  May  any  lands 
upon  which  taxes  are  delinquent. 

II.  Poll  tax. 

There  is  no  state  poll  tax. 

III.  Inheritance  tax. 

In  1899  an  inheritance  tax,  direct  and  collateral,  was 
imposed  on  personal  property  passing  after  death.  It 
was  enforced  and  taxes  were  collected  under  it  until 


March  1, 1902,  when  it  was  declared  unconstitutional  on 
the  ground  that  the  exemption  ($10,000)  applied  to  the 
estates  and  not  to  the  distributive  shares.  A  new  law 
was  enacted  in  1903. 

Under  the  former  law  all  real  estate  was  exempt; 
also  $10,000  worth  of  personal  property  in  each  estate. 
The  rates  were:  In  the  case  of  property  passing  to  the 
father,  mother,  husband,  wife,  child,  brother,  sister, 
wife  or  widow  of  a  son,  or  the  husband  of  a  daughter, 
adopted  child,  or  lineal  descendant,  1  per  cent;  in  all 
other  cases,  5  per  cent. 
IV.   Corporation  taxes. 

Since  1903  railroads  have  been  taxed  on  an  ad  va- 
lorem basis.  In  1902  they  were  taxed  upon  their  gross 
earnings,  the  tax  being  described  as  an  annual  license 
fee  for  operation  within  the  state.  This  tax  exempts 
property  used  in  operation  of  the  road  from  further 
taxation,  except  for  special  assessments  for  local 
improvements. 

The  rate  of  tax,  or  license  fee  so-called,  was  as  follows: 

(a)  Four  per  cent  of  the  gross  earnings  of  all  railroads,  except  those 
operated  on  pile  or  pontoon  bridges,  when  their  annual  earnings  equal 
or  exceed  $3,000  per  mile  of  operated  railroad. 

(b)  Three  and  one-half  per  cent  of  the  gross  earnings  of  such  rail- 
roads when  the  gross  earnings  equal  or  exceed  $2,500  and  are  less  than 
$3,000  per  mile. 

(c)  Three  per  cent  of  the  gross  earnings  of  such  railroads  when  the 
gross  earnings  are  between  $2,000  and  $2,500  per  mile. 

(d)  Five  dollars  per  mile  on  such  railroads  when  the  gross  earnings 
are  between  $1 ,000  and  $1,500  per  mile,  and,  in  addition,  2$  per  cent  of 
their  gross  earnings  when  the  earnings  are  in  excess  of  $1,500  and  under 
$2,000  per  mile. 

(e)  Five  dollars  per  mile  on  all  railroads  whose  earnings  are  less  than 
$1,500  per  mile. 

(/)  Two  per  cent  of  the  gross  earnings  of  all  railroads  which  are  op- 
erated on  pile  or  pontoon  bridges. 

One-half  of  the  license  fee  is  to  be  paid  at  the  time  the  license  is  issued 
and  one-half  by  the  10th  of  August  in  each  year.  For  failure  to  obtain 
the  license  the  company  is  subject  to  a  penalty  of  $10,000  and  the  for- 
feiture of  corporate  rights.  The  money  is  paid  into  the  general  funds 
of  the  state  and  not  apportioned. 

Telegraph  companies  pay  license  fees  for  state  purposes  as  follows: 
For  a  single  wire,  $1  per  mile;  for  the  second  wire,  50  cents  per  mile; 
for  the  third  wire,  25  cents  per  mile;  and  for  each  additional  wire  20 
cents  per  mile  for  every  mile  operated  in  the  state.  Payment  is  to  be 
made  by  June  1  in  each  year.  (This  tax  was  changed  in  1903  to  an  ad 
valorem  tax.) 

Telephone  companies  pay  an  annual  license  fee  on  gross  earnings  as 
follows:  Over  $100,000,  3  per  cent;  under  $100,000,  2}  per  cent.  A 
penalty  of  $5,000  and  forfeiture  of  corporate  rights  is  imposed  for  fail- 
ure to  obtain  the  license.  (Amended  in  1905  to  4  per  cent  on  gross  earn- 
ings over  $100,000.) 

Street  railroads  pay  to  the  city  or  village  from  which  the  franchise 
is  derived  license  fees  as  follows:  Companies  whose  gross  cash  receipts 
equal  $800,000  per  annum  pay  3  per  cent  on  the  first  $800,000  and 
4  per  cent  on  all  amounts  over  $800,000.  Companies  whose  gross  re- 
ceipts are  less  than  $800,000  pay  1J  per  cent  on  the  first  $250,000  and 
2$  per  cent  on  all  amounts  over  $250,000. 

The  latter  tax  applies  also  to  electric  light  and  power  companies  oper- 
ated in  connection  with  street  railways.  Apportionment  is  to  be  made 
between  different  municipalities  according  to  the  number  of  miles  of 
track  or  feet  of  wire  in  each.  When  the  track  extends  beyond  the 
limits  of  the  principal  municipality  to  a  town  or  village,  the  principal 
town  receives  for  every  mile  three  portions  of  such  fee  to  one  for  the 


822 


WEALTH,  DEBT,  AND  TAXATION. 


town  or  village  merely  touched  by  the  road.  Of  these  license  fees  the 
state  receives  9  per  cent,  the  county ,'3  per  cent,  and  the  municipalities, 
88  per  cent,  apportioned  to  wards  and  taxing  districts.  In  1905  the 
rate  was  made  5  per  cent  on  gross  receipts  over  $400,000  and  24  per 
cent  when  less.     Further  changes  were  made  to  take  effect  in  1908. 

Trust,  annuity,  and  guaranty  companies  pay  to  the  state  treasurer 
as  an  annual  license  fee  the  sum  of  $300  by  the  1st  of  March,  and,  in 
addition  thereto,  2  per  cent  of  their  net  annual  income.  This  tax  is 
in  lieu  of  all  taxes  for  any  purpose  except  those  upon  real  estate.  The 
tax  was  made  $500  and  3  per  cent  in  1905. 

Life  insurance  companies,  except  fraternal  insurance  societies,  organ- 
ized under  the  laws  of  the  state,  when  they  are  not  purely  assess- 
ment companies,  pay  an  annual  license  fee  of  3  per  cent  on  all  pre- 
miums collected  from  residents  of  the  state. 

All  foreign  life  insurance  companies,  except  fraternal  societies  and 
purely  assessment  companies,  pay  an  annual  license  fee  of  $300  except 
when  retaliatory  taxes  exceed  $300,  when  the  license  fee  shall  be  de- 
ducted therefrom.  New  rates  to  take  effect  in  1908  were  fixed  in  1905. 
A  retaliatory  increase  of  tax  is  laid  on  all  foreign  insurance  companies 
on  principles  of  reciprocity. 

Every  other  life  insurance  company,  domestic  or  foreign,  except  fra- 
ternal societies,  and  including  assessment  companies,  pay  an  annual 
license  fee  of  $300. 

These  license  fees  are  in  lieu  of  all  taxes  except  taxes  on  real  estate. 

Marine  insurance  companies  pay  2  per  cent  of  the  gross  amount  of 
premiums  from  business  in  the  state. 

Fire  and  navigation  insurance  companies,  except  town,  church,  and 
mutual  insurance  companies,  pay  as  license  fee  2  per  cent  of  the  gross 
income. 

Casualty  companies  pay  an  annual  license  fee  of  2  per  cent  of  their 
gross  premiums. 

Title  guaranty  companies,  in  lieu  of  all  other  taxes,  pay  the  same 
license  fees  as  fire  insurance  companies. 

Plank  and  toll  roads  are  to  pay  as  license  fee  3  per  cent  of  the  gross 
receipts  of  such  roads  by  the  1st  of  July  each  year.  This  is  in  lieu  of 
all  other  taxes.  A  penalty  of  $500  is  imposed  for  failure  to  make  re- 
turn or  pay  the  license  fee. 

Boom  companies  which  operate  structures  in  the  waters  of  the  state 
for  handling  logs  pay  license  fees  of  2  per  cent  of  the  gross  earnings  of 
the  business.  Local  taxes  on  the  property  may  be  deducted  from  the 
license  fees. 

V.  Business  taxes  and  licenses. 

The  following  annual  taxes  and  licenses  are  levied : 

Peddlers — who  carry  goods  themselves,  $30;  with  one  horse,  $45; 
with  twoor  more  horses,  $75.  Transient  merchants,  $50 ;  circuses,  shows, 
etc.,  $100;  side  shows  and  curiosities,  $20;  dealers  in  bankrupt  stock, 
$100  (held  unconstitutional  and  amended  in  1905). 

B.    FEES. 

Secretary  of  state. — Filing  articles  of  incorporation — corporations  for 
manufacture  of  beet  sugar  and  dairy  products,  $10;  amendments,  $5; 
other  corporations,  $25;  for  each  additional  $1,000  of  capital  stock  over 
$25,000,  $1 ;  amendments,  $10;  foreign  corporations,  filing  articles,  $25. 
Physicians — examination,  $10;  certificate  to  practice  medicine,  $5; 
pharmacists — registration,  $5;  renewal,  $2;  dentists — examination,  $10; 
registration,  annual,  $1. 

County  Revenues. 

a.   TAXES. 

I.    The  general  property  tax. 
1.  Base — 
The  property  included  and  the  methods  of  assess- 
ment and  equalization  are  the  same  for  the  county  as 


for  the  state.  Equalization  between  the  towns  is  pecu- 
liar to  the  county  and  is  made  by  the  county  board  to 
determine  the  true  relative  value  of  all  the  taxable 
property  in  each  city,  town,  and  village.  The  list  of 
property  so  equalized  is  the  basis  of  the  county  assess- 
ment. Towns  aggrieved  by  the  equalization  made  by 
the  county  board  may  appeal  to  the  judge  of  the  circuit 
court  for  the  county  to  appoint  three  commissioners  of 
equalization  to  review  the  action  of  the  board. 

2.  Rate— 

The  county  board  determines  the  amount  of  tax  to 
be  levied  for  county  purposes.  There  is  a  limit  of  3  per 
cent  on  the  total  assessed  valuation  of  the  county,  as 
fixed  by  the  state  board  of  equalization.  The  county 
tax  and  the  state  tax  levied  upon  the  county  are  appor- 
tioned among  the  several  towns,  cities,  and  villages  by 
the  county  clerk. 

3.  Collection — 

County  taxes  are  collected,  as  are  state  and  municipal 
taxes,  by  the  town  treasurer. 

II,  III,  IV,  and  V.  Poll  tax,  inheritance  tax,  corpora- 
tion taxes,  and  business  taxes  and  licenses. 
Counties  levy  none  of  these.  They  receive,  however, 
3  per  cent  of  the  taxes  on  street  railroads  and  electric 
light  and  power  companies  and  15  per  cent  of  inherit- 
ance taxes  collected  by  the  county  treasurer  for  the 
state. 

Municipal  Revenues, 
a.  taxes. 

I.   The  general  property  tax. 

1.  Base — 

The  property  included  and  the  methods  of  assessment 
and  of  equalization  are  practically  the  same  as  for  state 
and  county  purposes.  Local  taxes  are  levied  on  the  tax 
roll  as  corrected  for  the  county  without  necessarily  be- 
ing corrected  for  state  equalization. 

2.  Rate- 
In  towns  the  electors  at  town  meeting  may  vote  a 

tax  for  town  purposes  not'to  exceed  2\  per  cent  of  the 
total  assessed  valuation  of  the  town.  In  cities  the  com- 
mon council  levies  the  taxes  for  such  sums  as  it  con- 
siders necessary,  provided  that  the  tax  levied  for  mu- 
nicipal purposes,  the  tax  required  to  be  levied  for  state, 
county,  county  school,  and  school  district  purposes,  and 
the  delinquent  taxes  for  the  preceding  year  do  not  ex- 
ceed 2>\  per  cent  of  the  assessed  value  of  the  property  in 
the  city.  The  county  board  determines  the  amount 
to  be  raised  in  each  town  for  the  support  of  common 
schools. 

3.  Collection — 

Municipal  taxes  are  collected  with  the  state  and 
county  taxes  by  the  town  and  city  treasurers,  as  de- 
scribed above. 


TAXATION  AND  REVENUE  SYSTEMS— WYOMING. 


S23 


II.  Poll  tax. 

Every  male  inhabitant  between  21  and  50  years  of 
age,  with  certain  exemptions,  is  required    to  pay  a 
highway  poll  tax  of  $1.50. 
Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There  are  no  municipal  inheritance  or  corporation 
taxes. 
V.  Business  taxes  and  licenses. 

The  following  annual  taxes  and  licenses  are  levied : 

Peddlers,  at  rates  fixed  by  municipal  boards;  dealers  in  bankrupt 
stock,  auctions,  and  auctioneers,  $10  to  $300;  (in  addition,  certain  per- 
centages are  required);  liquor  license  fees— towns  having  within  their 
boundaries  no  villages  or  cities  of  500  inhabitants  or  more,  $100;  cities, 
villages,  and  all  other  towns,  $200.  These  fees  may  be  increased  by 
vote  in  towns  having  within  their  boundaries  no  villages  or  cities  of  500 
inhabitants  or  more,  to  $2.50  or  $400;  in  cities,  villages,  and  all  other 
towns,  to  $350  or  $500. 


School  Revenues. 

The  constitution  establishes  the  school  fund,  derived 
from  the  proceeds  of  state  lands  granted  by  the  United 
States  and  from  various  other  sources.  The  income  and 
the  proceeds  of  the  state  tax  of  1  mill  are  to  be  appor- 
tioned among  the  several  counties.  Further  apportion- 
ment is  then  made  among  the  towns,  cities,  villages, 
and  districts.  Each  town  and  city  is  required  to  raise 
for  the  support  of  the  common  schools  a  sum  not  less 
than  the  amount  received  from  the  school  fund. 

School  districts  may  be  formed  by  the  town  and  city 
boards  and  taxes  are  assessed  as  for  town  and  county 
purposes.  The  amount,  not  to  exceed  5  per  cent  of  the 
property  valuation,  is  to  be  voted  by  the  inhabitants 
of  the  district. 


WYOMING.1 


Wyoming  draws  her  state  revenues  primarily  from 
the  general  property  tax.  There  is  no  state  inherit- 
ance tax,2  and  there  are  no  special  taxes  on  corporations 
except  insurance  companies.  Counties  draw  also  from 
poll  and  license  taxes,  while  the  municipal  revenues  are 
drawn  chiefly  from  the  general  property  tax  and  busi- 
ness taxes  and  licenses. 

CONSTITUTIONAL  PROVISIONS. 

ARTICLE    XV. 

Sec.  1.  All  lands  and  improvements  thereon  shall  be  listed  for  assess- 
ment, valued  for  taxation  and  assessed  separately. 

Sec.  2.  All  coal  lands  in  the  state  from  which  coal  is  not  being  mined 
shall  be  listed  for  assessment,  valued  for  taxation  and  assessed  according 
to  value. 

Sec.  3.  All  mines  and  mining  claims  from  which  gold,  silver,  and  other 
precious  metals,  soda,  saline,  coal,  mineral  oil,  or  other  valuable  deposit, 
is  or  may  be  produced  shall  be  taxed  in  addition  to  surface  improve- 
ments, and  in  lieu  of  taxes  on  the  lands,  on  the  gross  product  thereof,  as 
may  be  prescribed  by  law:  Provided,  That  the  product  of  all  mines  shall 
be  taxed  in  proportion  to  the  value  thereof. 

Sec.  4.  For  state  revenue  there  shall  be  levied  annually  a  tax  not  to 
exceed  four  mills  on  the  dollar  of  the  assessed  valuation  of  the  property 
in  the  state  except  for  the  support  of  state  educational  and  charitable 
institutions,  the  payment  of  the  state  debt  and  the  interest  thereon. 

Sec.  5.  For  county  revenue  there  shall  be  levied  annually  a  tax  not 
to  exceed  twelve  mills  on  the  dollar  for  all  purposes,  including  general 
school  tax,  exclusive  of  state  revenue,  except  for  the  payment  of  its  pub- 
lic debt  and  the  interest  thereon.  An  additional  tax  of  two  dollars  for 
each  person  between  the  ages  of  twenty-one  years  and  fifty  years,  inclu- 
sive, shall  be  annually  levied  for  county  school  purposes. 

Sec.  6.  No  incorporated  city  or  town  shall  levy  a  tax  to  exceed  eight 
mills  on  the  dollar  in  any  one  year,  except  for  the  payment  of  its  public 
debt  and  the  interest  thereon. 

Sec.  9.  Board  of  equalization  for  state.  There  shall  be  a  state  board, 
composed  of  the  state  auditor,  treasurer,  and  secretary  of  state. 

'This  compilation  is  derived  mainly  from  the  following  sources: 

Revised  Statutes  of  Wyoming,  in  force  December  1,  1899.  Compiled 
by  J.  A.  Van  Orsdel  and  Fenimore  Chatterton,  by  authority  of  the  fifth 
state  legislature:  Chaplin,  Spofford  &  Mathison,  Laramie,  Wyo.,  1899. 

Laws  of  Wyoming,  1901:  Chaplin,  Spofford  &  Mathison,  Laramie, 
Wyo.,  1901. 

2  State  inheritance  tax  law  enacted  in  1903. 


Sec.  10.  The  duties  of  the  state  board  shall  be  as  follows:  To  fix  a 
valuation  each  year  for  the  assessment  of  live  stock,  and  to  notify  the 
several  county  boards  of  equalization  of  the  rate  so  fixed  at  least  ten  days 
before  the  day  fixed  for  beginning  assessments;  to  assess  at  their  actual 
value  the  franchises,  roadway,  roadbed,  rails,  and  rolling  stock  and  all 
other  property  used  in  the  operation  of  all  railroads  and  other  common 
carriers,  except  machine  shops,  rolling  mills,  and  hotels  in  this  state; 
such  assessed  valuation  shall  be  apportioned  to  the  counties  in  which 
such  roads  and  common  carriers  are  located,  as  a  basis  for  taxation  of 
such  property :  Provided,  That  the  assessment  so  made  shall  not  apply  to 
incorporated  towns  and  cities.  Said  board  shall  also  have  power  to 
equalize  the  valuation  on  all  property  in  the  several  counties  for  the  state 
revenue  and  such  other  duties  as  may  be  prescribed  by  law. 

Sec.  11.  All  property,  except  as  in  this  constitution  otherwise  pro- 
vided, shall  be  uniformly  assessed  for  taxation,  and  the  legislature  shall 
prescribe  such  regulations  as  shall  secure  a  just  valuation  for  taxation  of 
all  property,  real  and  personal. 

Sec.  12.  The  property  of  the  United  States,  the  state,  counties,  cities, 
towns,  school  districts,  municipal  corporations,  and  public  libraries,  lots 
with  the  buildings  thereon  used  exclusively  for  religious  worship,  church 
parsonages,  and  public  cemeteries,  shall  be  exempt  from  taxation,  and 
such  other  property  as  the  legislature  may  by  general  law  provide.3 

Sec.  13.  No  tax  shall  lie  levied,  except  in  pursuance  of  law,  and  every 
law  imposing  a  tax  shall  state  distinctly  the  object  of  the  same,  to  which 
only  it  shall  be  applied. 

Sec.  14.  The  power  of  taxation  shall  never  be  surrendered  or  sus- 
pended by  any  grant  or  contract  to  which  the  state  or  any  county  or 
other  municipal  corporation  shall  be  a  party. 

OFFICERS. 

The  officers  most  directly  concerned  with  taxation 
are: 

(1)  Assessors  of  incorporated  towns  and  cities,  as  provided  by  charter 
and  ordinance. 

(2)  The  town  and  city  treasurers,  who  are  ex  officio  collectors. 

(3)  County  assessor,  one  in  each  county,  elected  for  two  years.4     Sal- 

3  Subsequent  law  exempts  coupon  or  registered  interest  bearing  bonds 
of  the  state  or  any  county,  school  district,  or  municipality  of  the  state  of 
Wyoming  when  owned  by  actual  residents  of  the  state,  provided  that  the 
owner  shall  list  same  annually  on  the  assessment  schedule,  describing 
name  and  the  amount  thereof,  and  shall  mark  opposite  thereto  on 
schedules  the  word  "exempt." 

4Assessors  now  appointed  by  the  board  of  the  county  commissioners, 
under  law  passed  subsequent  to  1902;  appointments  made  annually. 


824 


WEALTH,  DEBT,  AND  TAXATION. 


aries  are  graded  according  to  total  valuation  as  fixed  by  the  state  and 
county  boards  of  equalization. 

(4)  The  county  treasurer,  one  in  each  county,  elected  for  two  years, 
who  is  ex  officio  collector  of  taxes  therein. 

(5)  County  board  of  equalization,  composed  of  the  board  of  county 
commissioners. 

(6)  State  board  of  equalization,  composed  of  the  secretary  of  state, 
treasurer,  and  auditor. 

State  Revenues. 

a.    TAXES. 

I.    The  general  property  tax. 
1.  Base — 

a.  The  property  included  and  exempt. — All  property, 
real  and  personal,  not  exempted  by  law  is  subject  to 
taxation : 

(1)  "Real  property"  includes  land,  possessory  claims,  buildings  and 
improvements,  ferries,  franchises,  and  toll  bridges. 

(2)  "Personal  property"  includes  domestic  animals  and  dogs,  bank 
deposits  and  specie,  credits,  mortgages,  stock  and  securities,  annuities, 
and  all  other  property  not  specified. 

(3)  Exemptions,  in  addition  to  public  property,  are:  Public  libra- 
ries; churches;  parsonages:  public  grounds  and  cemeteries;  fire  engines 
and  station  houses;  household  and  kitchen  furniture,  beds,  bedding, 
wearing  apparel  of  every  person,  and  the  food  provided  for  each  family, 
not  to  exceed  in  all  the  value  of  $100;  property  used  in  the  manufacture 
of  beet  sugar  in  the  state  for  a  period  of  ten  years  where  7.5  per  cent  of 
the  beets  are  grown  in  the  state;  pensions,  salaries,  and  payment  for 
services  expected  to  be  rendered.  By  act  of  February  1,  1901,  lands 
and  buildings  used  for  schools,  orphan  asylums,  or  hospitals,  and  lodge 
rooms  of  secret,  benevolent,  and  charitable  societies  not  for  private 
profit  are  exempt. 

b.  Assessment. — In  general,  for  state  and  county 
taxes  tbere  is  but  one  assessment  roll,  of  which  the 
county  is  the  unit.  Cities  and  towns  may  have  inde- 
pendent rolls.  The  county  assessor  lists  all  persons  in 
his  county  and  assesses  all  property  on  the  basis  of 
schedules  made  out  by  the  assessor  or  his  deputies,  but 
sworn  to  by  the  owner,  and  property  is  assessed  at  its 
full  market  value  as  of  April  1,  except  as  the  valuation 
of  such  property  is  fixed  or  limited  by  the  state  board 
of  equalization.  Anyone  who  refuses  to  take  oath  to 
his  list  and  it  is  found  that  such  person  did  not  list  all 
his  property,  is  to  be  assessed  on  omitted  property  at 
double  the  ordinary  assessed  value.  The  valuation  at 
which  live  stock  is  to  be  assessed  is  fixed  by  the  state 
board  of  equalization. 

Bona  fide  debts  may  be  deducted  from  credits,  except  notes  given  as 
premiums  of  insurance,  unpaid  subscriptions  to  institutions  or  societies, 
or  unpaid  subscriptions  to  capital  stock. 

The  assessment  of  railroads,  express  companies,  telegraph  and  tele- 
phone lines,  and  car  companies  of  all  sorts,  for  state  and  county  pur- 
poses, is  made  by  the  state  board  of  equalization  on  the  basis  of  state- 
ments made  by  the  companies,  and  the  assessment  so  made  is  appor- 
tioned to  the  counties  on  the  basis  of  mileage  in  the  counties,  where  it  is 
reapportioned  to  school  districts  by  the  county  commissioners.  Prop- 
erty not  used  in  connection  with  the  operation  of  the  railroad  or  tele- 
graph lines,  such  as  machine  shops,  rolling  mills,  and  hotels,  are  assessed 
by  the  county  assessors  as  real  estate. 

The  assessment  made  by  the  board  of  equalization  does  not  apply  to 
incorporated  towns  and  cities,  which  are  left  to  fix  their  own  valuation  in 
accordance  with  the  needs  of  their  respective  governments. 


Merchants  are  to  list  the  average  value  of  their  capital  during  the  year 
previous;  commission  merchants,  the  average  monthly  amount  since  the 
last  assessment. 

Manufacturers  are  to  list  the  average  value  of  the  raw  materials  in 
their  hands. 

Capital  stock  of  domestic  companies,  except  banks,  is  not  assessed  for 
taxation.  Capital  stock  of  foreign  companies  doing  business  in  the 
state,  together  with  the  accumulated  surplus,  not  including  real  estate 
situated  in  any  other  state,  is  to  be  assessed  to  the  company,  and  share- 
holders are  not  to  be  assessed  therefor. 

Shares  of  stock  in  banks  are  assessed  to  the  owners  at  their  par  value 

Mines  are  assessed  on  gross  product  in  lieu  of  tax  on  lands. 

Personalty  brought,  driven,  or  coming  into  the  state  prior  to  the  last 
day  of  the  year  which  remains  for  a  period  of  not  less  than  thirty  days 
is  assessed  in  the  same  manner  as  if  it  had  been  in  the  county  at  the 
time  of  the  annual  assessment. 

All  live  stock  upon  the  open  range,  for  the  purpose  of  taxation,  has 
its  situs  in  the  county  wherein  is  located  the  "home  range."  If  the 
"home  range"  of  any  herd  or  brands  of  live  stock  is  located  in  two  or 
more  counties,  the  assessment  is  apportioned.  Live  stock  is  to  be 
assessed  where  located  on  April  1,  or  if  brought  into  the  state  after  that 
date,  in  the  county  where  first  brought  in.  The  owner  of  any  live  stock 
which  is  to  be  brought  into  the  state  is  required  to  give  10  days'  notice 
of  the  removal  of  the  stock  to  the  assessor  of  the  county  into  which  the 
stock  is  first  to  be  brought,  who  may,  if  necessary,  make  up  a  supple- 
mental assessment  roll.  The  penalty  for  failure  to  give  notice  to  the 
assessor  is  a  fine  of  $50  to  $500  or  imprisonment  for  six  months,  or  both. 
The  owner  of  any  live  stock  which  has  been  assessed  must  give  notice 
of  any  removal  from  the  county,  and  a  copy  is  transmitted  to  the  county 
where  the  stock  is  to  be  taken  and  filed  therein.  The  penalty  for  failure 
to  give  this  notice  is  a  forfeit  of  $10  to  $100. 

c.  Equalization. — The  county  board  of  equalization 
equalizes  between  individuals,  hears  complaints  on  the 
assessments,  adds  omitted  property  and  assesses  the 
value  thereof,  and  corrects  the  valuations  in  the  assess- 
ment roll. 

The  state  board  of  equalization  equalizes  the  valua- 
tion of  real  property  among  the  several  counties  and 
towns  in  the  state,  and  adds  to  or  deducts  from  the 
aggregate  valuation  of  real  property  in  the  county. 
2.  Rate— 

The  rate  for  state  revenues,  except  for  the  support 
of  state  educational  and  charitable  institutions,  and 
for  the  payment  of  the  state  debt  and  the  interest 
thereon,  is  limited,  by  the  constitution  to  4  mills  on 
the  dollar,  and  the  tax  to  be  levied  and  collected  by 
each  county  is  at  this  rate  unless  a  lower  one  is  deter- 
mined by  the  state  board  of  equalization. 

For  maintenance  of  state  institutions,  the  rates  authorized  are: 
General  hospital  fund,  one-eighth  of  1  mill  on  each  dollar:  fund  for  the 
insane,  one-half  of  1  mill  on  each  dollar;  university  tax,  one-fourth  of  1 
mill  on  each  dollar;  capital  building,  one-eighth  of  1  mill  on  each  dollar; 
charitable  institutions,  1  mill  on  each  dollar;  interest  on  state  bonds  and 
tax  sufficient  to  pay  said  interest;  extraordinary  special  levy  1902  for 
the  University  of  Wyoming  was  five-tenths  of  1  mill  on  the  dollar. 

Special  tax  levies  for  1902  were  as  follows:  Big  Horn  Hot  Springs, 
state  lands,  irrigation  and  improvement,  one-tenth  of  1  mill  on  the 
dollar;  gubernatorial  residence,  one-eighth  of  1  mill  on  the  dollar; 
hospital  for  insane,  one-eighth  of  1  mill  on  the  dollar:  Rowlins  peni- 
tentiary, three-sixteenths  of  1  mill  on  the  dollar:  University  of  Wy- 
oming, five-sixteenths  of  1  mill  on  the  dollar;  Wyoming  general  hos- 
pital, one-eighth  of  1  mill  on  the  dollar.  In  the  case  of  live  stock  and 
personalty  remaining  in  the  state  more  than  thirty  days  and  less  than 
six  months  only  one-half  the  tax  of  that  upon  other  like  property 
is  levied. 


TAXATION  AND  REVENUE  SYSTEMS— WYOMING. 


825 


3.   Collection — 

Collection  of  state  taxes  is  the  same  as  that  of  county 
taxes.  The  county  is  liable  to  the  state  for  the  amount 
of  tax  levied  for  state  purposes,  except  erroneous  assess- 
ments, and  no  credit  is  to  be  given  to  any  county  for 
any  part  other  than  that  of  such  tax  levy  remaining 
uncollected.  All  state,  county,  and  school  district 
taxes  are  due  and  payable,  without  demand,  after  the 
third  Monday  in  September,  at  the  office  of  the  county 
treasurer.  After  December  31  all  unpaid  taxes  are 
delinquent,  and  a  penalty  of  8  per  cent  is  added  and  the 
whole  draws  interest  at  that  rate.  Taxes  are  a  lien  on 
personal  property  assessed  and  on  real  property  for 
both  real  and  personal  taxes  from  December  31.  De- 
linquent taxes  are  collected  by  distress  and  sale. 
II  and  III.  Poll  tax  and  inheritance  tax. 

There  is  no  state  poll  tax,  and  there  was  no  inheri- 
tance tax  in  1902,  but  in  1903  one  was  enacted. 

IV.  Corporation  taxes. 

Corporations  are,  in  general,  taxed  under  the  gen- 
oral  property  tax. 

urance  companies  pay  2J  per  cent  of  the  gross  premiums  received 
f.tmi  business  in  the  state  on  the  basis  of  annual  reports  to  the  insurance 
commissioner,  who  collects  the  tax  between  February  1  and  March  30 
in  each  year.  Insurance  companies  are  subject  to  no  other  taxation 
except  taxes  on  real  and  personal  property  and  such  fees  as  are  imposed 
as  a  condition  precedent  to  the  transaction  of  business  within  the  state. 
(Every  insurance  company  is  subject  to  an  additional  tax  of  2  per 
cent  of  premiums  received  upon  policies  held  by  residents  which  have 
become  forfeited,  but  fraternal  organizations  are  exempt.) 

V.  Business  taxes  and  licenses. 

Foreign  building  and  loan  associations  pay  the  state  auditor  $2.5; 
foreign  life  and  accident  insurance,  assessment  plan  (insurance  com- 
mission) ,  $25. 

B.    FEES. 

Secretary  of  state. — Incorporation  fees, capital  $5,000  or  less,  $5;  over 
$5,000  to  $100,000,  $10;  over  $100,000,  $10  plus  6  cents  additional  for 
each  $1,000  in  excess  of  $100,000.  These  fees  are  in  full  of  all  charges 
for  filing  and  recording  articles  of  incorporation.  Foreign  corpora- 
tions, filing  copies  of  charters  (register  of  deeds),  $1;  foreign  building 
and  loan  association,  annual  statement  (auditor),  $10;  foreign  life  and 
accident  insurance  companies,  examination  and  first  annual  statement 
(insurance  commission),  $50;  subsequent  statements,  $25;  certificate  of 
authority  to  agents,  $1 ;  domestic  insurance  companies,  $50:  filing  and 
examination  of  first  application,  $25;  annual  statements,  $1;  certificate 
of  authority — copies  of  papers  and  seals,  minor  fees. 

Physicians  and  surgeons,  examination,  $5;  pharmacist,  certificate, 
$3;  examination,  $10;  annual  registration  fee,  $2;  foreign  fraternal  in- 
surance associations — permit  to  do  business  in  state,  $15;  annual  re- 
port, $10. 

County  Revenues. 

a.   TAXES. 

I.    The  general  property  tax. 
1.  Base — 
The    property    included    and    the    assessment    and 
equalization  thereof  are  the  same  for  county  as  for 
state  purposes. 


2.  Rate— 

County  taxes  are  levied  by  the  county  commis- 
sioners, of  which  the  aggregate,  including  the  general 
school  tax,  is  limited  to  12  mills  on  the  dollar,  exclu- 
sive of  state  revenue  and  the  payment  of  the  public 
debt  and  interest  thereon. 

3.  Collection — 

Collection  is  made  by  the  county  treasurer  the  same 
as  for  state  taxes. 
II.  Poll  tax. 

a.  General. — A  tax  of  $2  is  to  be  levied  on  every 
person  between  the  ages  of  2 1  and  50  years  for  county 
school  purposes.  It  is  the  duty  of  the  assessor  to  list 
each  and  every  person  in  his  county,  and  poll  taxes 
when  properly  assessed  become  due  and  payable  on 
the  delivery  of  the  tax  list  to  the  treasurer.  The  polls 
of  persons  who  have  arrived  at  the  age  of  50  years  are 
exempt. 

Delinquent  poll  taxes  may  be  collected  by  the  sale  of 
the  taxpayer's  property.  From  the  proceeds  of  such 
a  sale  the  collector  deducts  the  amount  of  the  tax  and 
$1  as  his  fee,  and  returns  the  remainder  to  the  tax- 
payer. 

b.  Road. — The  county  commissioners  may  levy  on 
men  between  21  and  50  years  of  age  a  special  road  tax 
of  $2,  which  is  to  be  collected  according  to  road  dis- 
tricts, and  may  be  worked  out.  Members  of  fire  com- 
panies and  the  state  national  guard  are  exempt. 

Ill  and  IV.  Inheritance  tax  and  corporation  taxes. 

There  are  no  county  inheritance  or  special  corpora- 
tion taxes. 
V.  Business  taxes  and  licenses. 

Licenses  are  issued  by  the  sheriff  of  each  county  as 
follows : 

Auctioneers,  permanently  located,  $60  per  year;  auctioneers  and  ped- 
dlers generally,  $300  per  year;  pawnbrokers,  $25  per  quarter;  intelli- 
gence office,  $15  per  quarter;  exhibitions,  $10  to  $50  per  day;  circuses, 
$50  per  day;  gaming  license — faro,  monte,  keno,  rondo,  lansquenet, 
roulette,  vingt  et  un,  and  props,  $150  per  quarter;1  billiard  table  license, 
not  for  private  use,  $5  per  quarter;  bowling  alley,  $10  per  quarter; 
game  license,  $1  per  annum,  to  nonresidents,  $40,  guides,  $10.  Liquor 
licenses — sale  within  5  miles  of  a  railway  station  or  town,  city,  or  vil- 
lage, $300  per  annum;  other  eases,  $100  per  annum ;  wholesale  dealers, 
$175  per  annum;  car  liquor  license,  $10  per  car.  License  taxes  for 
liquor  selling,  billiard  tables,  and  gaming  within  the  corporate  limits  of 
any  city,  village,  or  town  go  to  the  municipality. 

Municipal  Revenues. 

A.    TAXES. 

I.    The  general  property  tax. 
1.  Base — 
The  property  included  is  the  same  for  municipal  as 
for   state   taxation.     Incorporated    towns    and   cities 

'But  all  gambling  was  prohibited  in  1902. 


826 


WEALTH,  DEBT,  AND  TAXATION. 


make  their  own  assessment  rolls,  as  provided  by  ordi- 
nance, and  have  their  own  boards  of  equalization. 

In  cities  of  the  second  class,  5,000  to  8,000  inhabi- 
tants, the  city  assessment  is  taken  by  the  city  clerk 
from  the  county  assessment  roll. 

2.  Rate— 

No  incorporated  city  or  town  shall  levy  a  tax  to 
exceed  8  mills  on  the  dollar,  except  for  the  payment  of 
its  public  debt  and  interest  thereon. 

3.  Collection — 

Collection  is  made  by  town  and  city  treasurers  in  a 
manner  similar  to  county  collection. 

II.  Poll  tax. 

See  County  poll  tax,  above. 

III.  Inheritance  tax. 

There  is  no  municipal  inheritance  tax. 

IV.  Corporation  taxes. 

Cities  granting  exclusive  franchises  for  water  or  light,  or  any  fran- 
chises for  street  railways,  or  electric  or  gas  lighting  or  heating  must 
contract  to  receive  at  least  one-fifth  of  all  the  net  earnings  and  reve- 
nues in  excess  of  6  per  cent  net  profits  upon  the  capital  actually  invested, 
under  such  franchise. 

V.  Business  taxes  and  licenses. 

All  taxes  on  licenses  issued  by  the  county  for  the  sale  of  liquors,  keep- 
ing billiard  tables,  and  gaming,  when  the  licensee  carries  on  the  business 
in  the  corporate  limits  of  any  incorporated  town,  city,  or  village  is  to  be 
collected  by  the  municipality  and  applied  to  the  general  revenue  pur- 
poses thereof. 

Cities  have  power  to  raise  revenue  by  collecting  license  taxes  on  any 
corporations  or  businesses  within  the  limit  of  the  city,  including  the  sale 
of  liquor.     The  license  tax  on  dogs  is  from  $1  to  $3. 

Incorporated  towns  may  license  and  tax  dogs,  hucksters,  peddlers, 
pawnbrokers,  exhibitions,  shows,  the  sale  of  liquors,   billiard  tables, 


bowling  alleys,  games  and  gaming  tables,  drays,  hacks  and  carriages, 
and  other  vehicles,  as  the  town  council  may  prescribe. 

Underwriters  are  required  to  pay  to  cities  a  duty  or  rate  of  1  per  cent 
upon  the  amount  of  all  premiums. 

School  Revenues. 

The  county  is  subdivided  by  the  county  superin- 
tendent of  schools  into  school  districts,  not  to  exceed 
twenty-five  to  a  population  of  10,000.  The  county  as- 
sessor at  the  time  of  making  the  county  assessment  also 
assesses  the  property  of  the  district.  The  board  of 
county  commissioners  equalizes  the  assessment  of  the 
several  school  districts.  There  is  levied  by  the  county 
commissioners  at  the  time  of  the  levy  for  county  pur- 
poses the  tax  voted  in  the  district,  upon  the  district 
assessment,  and  that  of  railroad  and  telegraph  prop- 
erty as  made  by  the  state  board  of  equalization.  Col- 
lection is  made  the  same  as  for  county  taxes. 

The  tax  rate  is  limited  to  10  mills  on  the  dollar,  and 
to  5  mills  where  the  total  valuation  is  over  $3,000,000 
or  less  than  $200,000. 

Apportionment  of  school  funds  in  the  county  treas- 
ury is  made  by  the  county  superintendent  as  follows: 
$150  to  each  school  district  for  the  payment  of  teachers, 
and  all  moneys  remaining  pro  rata  in  accordance  with 
the  number  of  pupils,  except  that  all  poll  taxes  col- 
lected for  school  purposes  by  the  county  treasurer  are 
to  be  paid  over  to  the  school  district  in  which  they 
were  collected. 

All  fines  and  penalties  under  the  general  laws  of  the 
state  belong  to  the  public  school  fund  of  the  respective 
counties. 


REVENUE  SYSTEM  OF  PORTO  RICO. 


Professor  Plehn's  compilation  does  not  include  any 
reference  to  the  revenue  laws  of  Porto  Rico.  A  sum- 
mary of  these  laws  was  given  in  Census  Bulletin  24, 
prepared  by  Hon.  William  F.  Willoughby,  treasurer 
of  the  insular  government.  The  most  important  para- 
graphs of  that  bulletin  relating  to  the  insular  and 
municipal  revenue  systems  of  Porto  Rico  are  here 
reproduced.  In  addition  to  the  facts  stated  in  these 
paragraphs  mention  should  be  made  of  the  fact  that  the 
insular  government  is  in  receipt  of  what  are  properly 
grants  from  the  Government  of  the  United  States,  the 
moneys  so  granted  being  derived  from  the  collection 
of  custom  duties.  The  present  revenue  system  of  Porto 
Rico  differs  very  materially  from  that  which  prevailed 
before  the  American  occupation.  The  extracts  from 
Bulletin  24  relate  only  to  the  "new"  system  intro- 
duced since  the  island  came  under  the  control  of  the 
United  States  Government: 

Revenue  law. — The  new  revenue  law  provided  for  five  distinct 
taxes:  (1)  A  general  property  tax  upon  real  and  personal  prop- 
erty in  the  island;  (2)  a  system   of  excise  taxes  upon  liquors, 


tobacco,  and  certain  other  articles  and  upon  certain  documents; 
(3)  an  inheritance  tax;  (4)  a  tax  upon  surety  and  insurance  com- 
panies; and  (5)  a  speeial  license  tax  upon  foreign  corporations 
doing  business  in  the  island. 

General  property  lax. — The  general  property  tax  is  similar  in  all 
essential  respects  to  the  general  property  tax  as  found  in  most  of 
the  states  of  the  Union.  All  property,  real  and  personal,  not 
specially  exempt  by  the  law  is  assessed  to  its  owner  at  its  fair 
market  value  without  regard  to  what  might  be  its  price  at  a 
forced  sale.  Every  effort  is  made  to  carry  out  this  provision  of 
having  the  property  valued  at  its  full  market  value.  The  exemp- 
tions are  on  a  rather  liberal  scale.  They  include,  in  addition  to 
public  property,  all  property  used  exclusively  for  religious,  chari- 
table, educational,  literary,  and  scientific  purposes,  cemeteries, 
professional  tools,  household  furniture  other  than  that  in  board- 
ing and  eating  houses,  wearing  apparel  and  the  like,  growing 
crops  and  products  of  the  land  actually  owned  by  and  still  in  the 
hands  of  the  producer,  and  all  property  of  whatever  description 
belonging  to  persons  whose  total  property  is  assessed  at  less  than 
$100.  This  latter  exception  is  of  especial  importance,  owing  to  the 
large  number  of  persons  in  the  island  coining  within  its  terms. 
Mortgages  upon  real  estate  are  assessed  as  an  interest  in  real 
estate  to  the  mortgagee,  and  the  mortgagor  is  allowed  a  cor- 
responding deduction  from  the  assessment  of  the  property  involved 
in  all  cases,  except  where  an  express  covenant  in  writing  exists 


TAXATION  AND  REVENUE  SYSTEMS— PORTO  RICO. 


827 


between  the  mortgagor  and  mortgagee  that  the  former  shall  pay 
the  tax.  In  the  assessment  of  personal  property  taxpayers  are 
required  to  list  all  of  their  credits,  from  which  they  are  allowed  to 
deduct  their  bona  fide  debts,  but  in  no  case  can  the  debts  be  set 
off  against  or  deducted  from  the  assessment  of  other  property. 
Corporations  are  so  far  as  practicable  treated  as  individuals.  They 
pay  taxes  upon  real  property  in  the  districts  in  which  it  is  located 
and  upon  the  actual  present  value  of  their  capital  less  the  value 
of  the  real  estate  upon  which  they  pay  separately.  In  assessing 
the  value  of  their  capital  the  law  requires  that  it  shall  in  no  case 
be  less  than  the  value  of  the  capital  stock  plus  the  surplus  and 
undivided  earnings,  or  less  than  the  market  value  of  the  real  and 
personal  property  owned  by  the  corporation  in  Porto  Rico.  In 
the  case  of  railroad  companies  having  their  tracks  in  more  than 
one  municipality  the  value  of  the  rolling  stock  and  roadbed  is 
apportioned  to  the  different  municipalities  in  proportion  to  the 
length  of  the  roadbed  in  each. 

Assessment  of  taxes. — The  provisions  of  the  law  relating  to  the 
machinery  of  assessment  and  the  manner  of  its  operation  are  par- 
ticularly important.  The  entire  work  of  assessing  property  is 
centralized  in  the  hands  of  the  insular  treasurer.  On  the  occasion 
of  the  making  of  the  first  assessment,  which  was  carried  through 
in  the  spring  and  early  summer  of  1901,  the  island  was  divided 
into  a  large  number  of  assessment  districts,  for  each  of  which  local 
assessors  were  appointed.  The  taxpayers  in  each  district  were 
required  to  make  sworn  returns  of  their  taxable  property  to  these 
assessors  upon  forms  supplied  them  for  that  purpose.  The  assess- 
ors revised  these  returns  where,  in  their  opinion,  the  valuations 
fixed  by  the  taxpayers  were  not  satisfactory,  and  notified  the  per- 
sons interested  of  their  action.  From  the  decision  of  the  assessor 
the  taxpayers  had  a  right  to  appeal  to  district  boards  of  review 
and  from  them  to  the  executive  council  as  the  final  board  of 
review.  A  supervisor  of  assessments  acting  under  the  treasurer 
had  general  charge  of  the  whole  work. 

In  1902  this  system  was  changed  in  a  number  of  important  par- 
ticulars. It  was  provided  that  the  future  work  of  revising  assess- 
ments should  be  done  by  a  small  and  select  force  of  official  assessors 
permanently  attached  to  the  treasury  department  instead  of  by  a 
force  temporarily  employed  for  the  work.  The  old  system  by 
which  the  action  of  assessors  was  passed  in  review,  first  by  district 
boards  and  later  by  the  executive  council,  was  abolished,  and  in  its 
place  provision  was  made  for  a  single  board  of  review  and  equaliza- 
tion composed  of  the  treasurer  as  chairman,  the  secretary  and  com- 
missioner of  the  interior  as  ex  officio  members,  and  two  other 
persons,  natives  of  Porto  Rico,  to  be  appointed  by  the  governor  by 
and  with  the  consent  and  approval  of  the  executive  council.  This 
board  not  only  passes  upon  all  appeals  made  to  it  by  taxpayers, 
but  has  the  power  to  make  on  its  own  initiative  such  changes  in  the 
assessment  of  property  as  it  deems  proper.  In  all  cases  where  it 
makes  such  changes,  however,  the  owners  of  the  property  in- 
volved have  to  be  informed  of  the  proposed  action  and  given  an 
opportunity  to  present  any  facts  or  arguments  that  they  may  desire 
if  they  believe  that  their  rights  are  injuriously  affected. 

Collection  of  taxes. — As  in  the  case  of  the  assessment  of  property, 
the  work  of  collecting  the  taxes  due  and  enforcing  the  law  in  all  par- 
ticulars is  concentrated  in  the  hands  of  the  treasurer.  The  revenue 
law  as  originally  passed  in  1901  provided  for  the  division  of  the 
island  into  nine  collection  districts  and  the  appointment  by  the 
treasurer  of  nine  collectors  and  twenty-seven  deputy  collectors. 
The  amending  act  made  provision  for  nine  collectors  and  fifty- 
one  deputy  collectors,  so  that  practically  each  municipal  district  of 
the  island  should  have  its  own  collector  and  deputy  collector.  No 
extra  expense  was  occasioned,  since  at  the  same  time  the  forty -one 
agencies  for  the  sale  of  internal  revenue  stamps  were  abolished 
and  the  duties  connected  with  them  imposed  upon  the  collectors 
and  deputy  collectors  of  taxes.     The  proper  performance  of  their 


duties  by  these  officers  is  enforced  through  two  traveling  examiners 
attached  to  the  treasury  department. 

The  system  for  the  enforcement  of  the  payment  of  delinquent 
taxes  is  similar  in  most  respects  to  that  in  force  in  the  United  States. 
Taxes  are  due  and  payable  in  two  installments,  July  1  and  January 
1  of  each  fiscal  year.  If  not  paid  within  sixty  days  they  become 
delinquent,  and  a  penalty  in  the  form  of  interest  at  the  rate  of 
1  per  cent  a  month  begins  to  run.  Within  thirty  days  after  taxes 
become  delinquent  each  collector  and  deputy  collector  must  post  a 
list  of  all  delinquent  taxpayers  in  his  district,  showing  the  amount 
of  taxes  due,  accompanied  by  a  notice  stating  that  if  the  taxes 
are  not  paid  within  twenty  days  from  its  date  the  property  will  be 
attached  and  sold.  In  thus  proceeding  against  delinquent  taxpayers 
the  written  order  of  the  treasurer  for  the  sale  must  in  all  cases  be 
obtained.  The  effort  must  first  be  made  to  secure  the  amount  due 
through  the  sale  of  the  personal  property  of  the  delinquent,  and 
if  this  can  not  be  done,  then  through  the  sale  of  a  sufficient 
amount  of  his  real  estate.  Property  not  sold  to  third  parties  is  bid 
in  in  the  name  of  the  people  of  Porto  Rico.  The  real  estate  so  sold 
can  be  redeemed  by  the  taxpayer  at  any  time  within  ninety  days 
after  the  sale  upon  the  payment  of  all  taxes,  penalties,  and  costs. 
The  rate  of  the  tax  was  fixed  at  one-half  of  1  per  cent  of  the  assessed 
value  of  the  property,  and  it  was  also  provided  that  the  munici- 
palities might  levy  a  further  rate  of  not  to  exceed  one-half  of  1  per 
cent  for  the  purpose  of  obtaining  income  for  their  local  needs.  The 
work  of  assessing  properties  began  immediately  after  the  passage 
of  the  law,  but  the  payment  of  taxes  did  not  become  due  until 
July  1,  1901. 

Excise  taxes. — The  system  of  excise  taxes  that  was  established  by 
the  same  law  can  be  much  more  briefly  described,  as  it  follows  so 
closely  that  of  the  Federal  Government  in  force  in  the  United  States. 
There  are  three  schedules,  known  respectively  as  "Schedule  A," 
''Schedule  B,"  and  "Schedule  C."  Schedule  A  provides  for  the 
payment  of  specific  duties  on  distilled  spirits,  beers,  wines,  cigars, 
cigarettes,  manufactured  tobacco,  matches,  playing  cards,  and 
oleomargarine,  and  ad  valorem  duties  on  proprietary  medicinal  prep- 
arations, patent  medicines,  toilet  articles,  perfumery,  cosmetics, 
and  arms  and  ammunition  manufactured  in,  or  imported  for  con- 
sumption into,  Porto  Rico.  Schedule  B  consists  of  a  scale  of  license 
taxes  imposed  upon  dealers  in,  or  importers  of,  the  articles  enumer- 
ated in  Schedule  A.  Schedule  C  imposes  moderate  documentary 
taxes  on  custom-house  entries  and  notarial  documents.  The  rates 
imposed  by  the  original  law  were  in  some  cases  increased  some- 
what by  the  amending  act  of  1902.  Thus  the  rate  on  wine  and 
malt  liquors  was  raised  from  15  to  21  cents  a  gallon,  and  the  license 
taxes  upon  dealers  and  importers  were  increased  from  25  to  50  per 
cent. 

The  following  statement  shows  the  rate  of  these  taxes  as  fixed  by 
the  amending  law  of  1902  and  in  force  during  the  fiscal  year  1902-3. 

Schedule  A. 

1.  Rum  and  bay  rum  produced  in  Porto  Rico  or  imported  from  the 

United  States,  per  gallon $0. 60 

Rum  and  bay  rum  imported  from  foreign  countries,  per  gallon 1. 00 

Other  distilled  liquors,  per  gallon 0. 80 

2.  Adulterated  distilled  liquors,  per  gallon 0.40 

3.  Wines  and  beers,  per  gallon 0.20 

Champagnes,  per  gallon 1. 00 

4.  Adulterated  wines  and  beers,  per  gallon 0. 15 

5-8.  Cigars  and  cigarettes  produced  in  Porto  Rico  or  imported  from  the 

United  States: 

Not  exceeding 3  pounds  per  thousand  in  weight,  per  thousand..  1.00 

Exceeding  3  pounds  per  thousand  in  weight,  per  thousand 1. 80 

Cigars  and  cigarettes  imported  from  foreign  countries: 

Not  exceeding  3  pounds  per  thousand  in  weight,  per  thousand . .  2. 00 

Exceeding  3  pounds  per  thousand  in  weight,  per  thousand 3. 60 

9.  Manufactured  tobacco  produced  in  Porto  Rico  or  imported  from  the 

United  States,  other  than  cut  plug  (labaco  hilado),  per  pound 0. 05 

Cut  plug  (tabaco  hilado),  per  pound 0.02 

Manufactured  tobacco  imported  from  foreign  countries,  per  pound. . .  0. 10 

10.  Playing  cards,  per  pack 0. 02 

11.  Medicinal  preparations 5  per  cent  ad  valorem 

12.  Oleomargarine,  perpound 0.10 

13.  Arms  ana  ammunition 25  per  cent  ad  valorem 

14.  Matches  produced  in  Porto  Rico  or  imported  from  the  United  States, 

per  hundred  boxes  (100  sticks  per  box) 0. 15 

Matches  imported  from  foreign  countries,  per  hundred  boxes  (100 
sticks  per  oox) 0. 30 


S2S 


WEALTH,  DEBT,  AND  TAXATION. 


Schedule  B. 

1.  Wholesale  dealers  in  distilled  spirits,  per  annum $100. 00 

2.  Wholesale  dealers  in  fermented  liquors,  per  annum 48.00 

3.  Retail  liquor  dealers: 

First  class,  per  annum 28. 00 

Second  class,  per  annum 16. 00 

Third  class,  per  annum 8.00 

4.  Wholesale  dealers  in  tobacco,  per  annum 48.00 

5.  Retail  tobacco  dealers: 

First  class,  per  annum 20. 00 

Second  class,  per  annum 10.00 

Tin rd  class,  per  annum 6. 00 

6.  Dealers  in  arms  and  ammunition,  per  annum 24. 00 

Schedule  C. 

1.  Entries  of  imports  from  foreign  countries,  per  copy $1.00 

2.  Notarial  instruments  and  documents  of  record,  per  copy $0.50  and  $1.00 

i  All  articles  exported  from  Porto  Rico  are  exempt  from  the  pay- 
ment of  excise  taxes. 

For  the  enforcement  of  the  law  provision  was  made  for  a  force 
of  internal  revenue  agents  having  the  same  general  powers  as  rev- 
enue agents  of  the  United  States.  The  treasurer  has  the  power  to 
issue  such  regulations  having  the  force  of  law  as  may  be  neces- 
sary for  the  proper  enforcement  of  the  laws.  By  the  act  of  1902 
he  was  also  empowered  to  impose  administrative  fines  of  not 
exceeding  $10  in  any  one  case  for  violations  of  the  law  or  his  regu- 
lations. Cases  of  deliberate  fraud  are  sent  to  the  courts  for  prose- 
cution. 

All  excise  taxes  are  paid  by  the  affixture  of  stamps.  The  receipts 
from  the  sale  of  such  stamps  are  in  the  first  instance  paid  into  the 
insular  treasury.  Of  the  sum  thus  realized  the  original  act  pro- 
vided that  until  July  1,  1901,  50  per  cent,  and  thereafter  15  per 
cent,  should  be  paid  to  the  municipalities,  being  apportioned  among 
them  according  to  population.  The  act  of  1902  changed  this  so 
that  only  7.5  per  cent  should  be  so  apportioned  during  the  fiscal 
year  1903-4,  and  that  thereafter  such  payments  should  be  entirely 
discontinued,  excise  taxes  thus  being  made  exclusively  a  source  of 
insular  revenue.  The  system  of  excise  taxes  went  into  force  upon 
the  passage  of  the  act,  January  31,  1901. 

Inheritance  tax. — The  inheritance  tax  is  slightly  progressive,  vary- 
ing in  accordance  with  the  relationship  of  the  heirs  and  the  value 
of  the  inheritance.  The  first  $200  of  any  devise,  and  all  prop- 
erty passing  to  the  wife,  child,  adopted  child,  or  grandchild  of  the 
deceased,  is  exempt;  husband  and  lineal  descendants  not  specific- 
ally exempt  pay  1  per  cent  and  other  heirs  3  per  cent  on  inherit- 
ances from  $200  to  $5,000;  1.5  and  4.5  per  cent,  respectively,  on 
from  $5,000  to  $20,000;  2  and  6  per  cent,  respectively,  on  from 
$20,000  to  $50,000;  and  3  and  9  per  cent,  respectively,  on  all  over 
the  latter  amount. 

Tax  on  surety  and  insurance  companies. — The  tax  upon  surety  and 
insurance  companies  consists  of,  first,  an  annual  tax  of  3  per  cent  of 
the  gross  amount  of  all  premiums  or  dues  collected  in  Porto  Rico; 
and,  second,  a  special  stamp  tax,  paid  by  the  affixture  of  internal 
revenue  stamps  as  follows:  For  each  bond  or  obligation  of  the 
nature  of  indemnity  for  loss,  damage,  or  liability,  and  each  bond, 
undertaking,  or  recognizance  conditioned  for  the  performance  of 
the  duties  of  any  office  or  position  issued  or  executed  or  received 
by  any  surety  company,  one-half  of  1  cent  on  each  $1  of  the 
amount  of  the  premium  charged;  for  each  policy  of  insurance 
instrument,  whereby  any  insurance  is  made  upon  any  life  or  lives, 
8  cents  on  each  $100  of  the  amount  insured;  for  each  policy  of 
insurance  by  which  insurance  is  made  or  renewed  upon  any  prop- 
erty of  any  description  against  peril  by  sea,  fire,  lightning,  or  other- 
wise, one-half  of  1  cent  on  each  $1  of  the  amount  of  the  premium 
charged.  These  corporations,  unless  they  have  money  invested 
in  Porto  Rico,  pay  no  general  property  tax.  The  license  tax  upon 
foreign  corporations  is  a  specific  annual  tax  of  $25  upon  all  such 
corporations  for  the  right  to  do  business  in  the  island. 

Interest  on  deposits. — In  addition  to  the  above  taxes,  which  con- 
stitute its  revenue  system  proper,  the  insular  government  obtains 


a  considerable  income  from  its  telegraph  service,  harbor  dues,  fees 
paid  by  corporations  for  the  filing  of  papers  in  the  secretary's 
office,  fines,  royalties  on  franchises,  and  interest  on  deposits. 

MUNICIPAL    REVENUES. 

The  local  governments  of  Porto  Rico  are  those  of  the 
46  (formerly  66)  municipalities.  In  section  60  of  the 
general  laws  of  the  island  are  found  the  provisions 
relating  to  the  revenue  of  these  municipalities.  That 
section  is  as  follows: 

Sec.  60. — That  any  municipality  shall  have  power  to  derive  its 
revenue  from  the  following  sources;  and  no  taxes,  imports,  excises, 
other  than  those  herein  enumerated,  shall  be  levied  by  a  munici- 
pality unless  expressly  authorized  by  this  act  or  by  the  laws  of 
Porto  Rico: 

(1)  The  incomes  from  municipal  markets,  slaughterhouses,  cem- 
eteries, waterworks,  gas  works,  or  other  property  owned  by  the 
municipality. 

(2)  The  incomes  from  any  taxes  apportioned  to  the  municipality 
by  the  laws  of  the  island. 

(3)  The  proceeds  of  any  tax  on  real  and  personal  property  situ- 
ated within  the  municipal  district  duly  authorized  by  the  legis- 
lative assembly  and  not  exempted  by  the  laws  of  the  United  States 
nor  by  any  act  of  the  legislative  assembly. 

(4)  Such  license  taxes  as  may  be  authorized  in  pursuance  of  the 
act  entitled  "An  act  to  provide  temporary  revenue  for  the  munici- 
pal districts  of  Porto  Rico,"  approved  January  thirty-first,  nine- 
teen hundred  and  one,  which  act  is  hereby  continued  in  force  from 
and  after  June  thirtieth,  nineteen  hundred  and  two,  until  repealed 
or  modified  by  act  of  the  legislative  assembly. 

(5)  Fines  imposed  by  police  and  municipal  courts. 

(6)  Fees  for  issuance  of  certificates  of  registration  of  cattle  brands 
at  the  rates  fixed  in  this  act. 

(7)  Charges  for  licenses  for  vehicles,  boats,  peddlers,  billiard 
tables,  pawnbrokers,  and  river  and  harbor  ferries  at  the  rates  fixed 
by  ordinance. 

(8)  Charges  for  permits  to  place  seats  for  hire  or  booths  in  public 
places. 

(9)  Charges  for  permits  for  public  amusements  and  shows. 

(10)  Charges  for  dog  licenses. 

(11)  Charges  for  permits  for  sewer  connections. 

(12)  Contingent  receipts  and  interest  on  public  funds. 

The  revenues  accruing  to  the  municipalities  under  the 
provisions  of  paragraph  (2),  are  those  which  represent 
their  share,  or  50  per  cent  of  the  insular  excise  taxes 
described  above.     Under  the  provisions  of  paragrapl 
(3)  there  is  levied  for  the  benefit  of  the  municipalities 
a  general  property  tax  of  one-half  of  1  per  cent  of  the 
assessed   valuation.     In  addition  to  this  general  low 
and  in  accordance  with  the  authority  granted  by  gen 
eral  law,   many  municipalities    levy  special  taxes  for 
schools  or  for  the  payment  of  interest  on  the  bonder. 
debt ;  one,  or  both. 

The  license  taxes  and  permits  authorized  by  para 
graphs  (4),  (7),  (8),  (9)N  (10),  and  (11)  are  similar  to  tin 
business  and  other  license  taxes  levied  and  permits 
issued  by  the  cities  of  the  various  states  of  the  Ameri- 
can Union.  The  particular  businesses  licensed  and  (In 
amount  of  taxes  collected  in  connection  therewith  var\ 
somewhat  in  the  different  municipalities. 


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,'A\ 


